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Fierce dispute over land in Brazil: foreigners, led by the US, are leading a real race for rural properties, driven by the strong dollar and the million-dollar opportunities in agribusiness

Written by Deborah Araújo
Published 01/12/2024 às 09:39
Fierce dispute over land in Brazil foreigners, led by the US, are leading a race for rural properties
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The rural property market in Brazil is increasingly attracting international investors, driven by the rise of the dollar and the strengthening of the agricultural sector, highlighting the country's economic potential.

Brazil is experiencing a period of intense movement in the rural property market. With the appreciation of the dollar and the growing attractiveness of the agricultural sector, the country has become a prime target for international investors. According to recent data, foreign interest in land in the country continues to grow, reinforcing the competition for land in Brazil, which reflects the country's economic potential. Read on to find out why foreigners are buying land in Brazil and the reasons behind the US interest.

The growth of land searches in Brazil

Demand for Brazilian rural properties has increased by 17% in the last three months, according to survey of the Chaozão portal, specialized in rural property advertisements. Foreign investors were responsible for 15% of the inquiries made in 2024, with emphasis on the United States, which leads the ranking with 26% of the total. North American interest shows how the Brazilian market has attracted international attention amid a scenario of dollar appreciation.

Geórgia Oliveira, CEO of Chaozão, explains why foreigners buy land in Brazil: “The devaluation of the real creates a favorable environment for those who want to invest in land in Brazil. There has never been a better time to acquire rural properties here.”

What role does the dollar play in attracting investors?

The dollar, which recently reached R$6,01, has been one of the biggest attractions for international investors. This appreciation of the american currency, added to the productive potential of Brazilian lands, has consolidated Brazil as one of the most interesting markets for the global agricultural sector.

Although Brazilian land prices have doubled in the last five years, the greater supply and the current economic situation have made it easier for foreigners to access the market. In addition, Brazilians living abroad are also taking advantage of the moment to invest in farms, ranches and smallholdings in the country.

Who is buying?

Among the countries most interested in land in Brazil, the US is at the top, accounting for more than a quarter of inquiries. Other notable countries include Japan (15%), the UK (12%) and Paraguay (11%), followed by Germany, France, Spain, China, Argentina and Canada.

The profiles of these investors are diverse, ranging from large businessmen in the agricultural sector to people seeking to fulfill their dream of working in agriculture and livestock farming. This movement reinforces how the dispute for land in Brazil is being driven by different motivations and origins.

Foreign lands in Brazil

Data from the National Institute of Colonization and Agrarian Reform (Incra) reveals that around 2,7 million hectares of Brazilian land are registered in the name of foreigners, an area equivalent to the size of the state of Alagoas. This volume demonstrates Brazil's relevance in the global rural property market.

One example of this is Alysson Pessoa, a Brazilian who has lived in the United States for 16 years. He fulfilled his dream of acquiring his first farm in Pará in 2016, a 65-acre property. Now, Alysson plans to expand his investments, targeting a new 120-acre farm in the same region.

“Brazil offers enormous potential. My idea is to take advantage of the winters in the US to work in Brazil and expand my rural business,” says Alysson, showing how the Brazilian market is attracting both foreigners and Brazilians seeking to reconnect with their origins.

Brazil as an agricultural powerhouse

Even amid economic and political challenges, Brazilian land continues to be seen as one of the most attractive investments. Experts believe that the upward trend in demand should consolidate in the coming years, reinforcing Brazil's role as a global agricultural powerhouse.

With the appreciation of the dollar and the competition for land in Brazil on the rise, the rural market stands out as a unique opportunity for global and national investors. The question that remains is: to what extent will this movement benefit the country without compromising Brazilians' access to their own land?

Land dispute in Brazil raises questions about regulation, access and preservation of natural resources

Foreign interest in rural properties in Brazil shows how the country is at the center of global attention. While international investors take advantage of the devaluation of the real to acquire land, Brazil is reaffirming its position as an attractive hub for the agricultural sector.

However, this land dispute in Brazil also raises important questions about regulation, access and preservation of natural resources. The challenge will be to balance economic growth with sustainable development, ensuring that everyone, both Brazilians and foreigners, can prosper in the country’s rural market.

This article was prepared based on information published by the website BuyRural.

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Deborah Araújo

I write about renewable energy, automobiles, science and technology, industry and the main trends in the job market. With a close eye on global developments and daily updates, I am dedicated to always sharing relevant information.

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