Finding a property investment that is both safe and offers real growth potential has become much harder in recent months.  Buying property still represents, for many, the best way to invest spare cash but not all property investments offer the same levels of security or return.  The emerging economies of Brazil, Russia, India and China (commonly known as the BRIC economies) have been receiving a lot of positive comment recently but property investors still need to exercise care here.

In my book property in Brazil represents one of the best opportunities around – it is one of the four fastest growing economies but doesn’t suffer from the political and diplomatic uncertainties that characterise the other three.  Russia and China both have internal political issues whereas India’s problems with its nearest neighbour make it risky too.

Looking at some of the factors that set Brazilian property and the country apart from its BRIC competitors shows why Brazil is already attracting huge amounts of interest from those looking to invest in property there:

•    Brazil is generally under housed (shortage of property);

•    Capital growth conservative estimate 20% p.a.

•    Tourist numbers up 134% over last few years and region is on course to enter coveted top 20 tourist destinations in the world 08/09;

•    Budget of $750 million US dollars set aside for tourist infrastructure.

Not forgetting, of course, that Brazil is to play host to the World Cup in 2014.

These new developing economies are well placed to dominate the world stage in the 21st Century and the knowledgeable property investor will wish to ensure s/he has adequate exposure to them in any portfolio.  They have not been seriously damaged by the financial storms the West has experienced.  According to the Economist “the idea that the world economy is being pushed along as an American supermarket trolley was always an exaggeration.  The difference now is the rest of the world is doing more of the carrying”.

The evidence is everywhere, your gas is supplied by Russia and 60% comes from Brazil.  These emerging countries are doing the same things Britain did in the 19th Century and what America did in the 20th Century.  They are building real wealth based on producing and exporting real products.  They are also saving and investing real money into their economies

If you are really interested in making good returns today your investment portfolio needs to have some form of exposure to these markets.  60% of the world’s GDP now comes from emerging markets and this will increase even further.  They will be the economic powerhouses of the future.