"Affordable destinations, phenomenal natural beauty, ease of access, but most importantly, significant wealth from international investment should continue to provide sound demand-side fundamentals to fuel this growth", said Rogerio Basso, speicalist in Latin American real estate at Ernst and Young.

Argentina is one of the countries set to benefit from international investment, with increased demand spawning an unprecedented construction boom. During the first half of 2006, growth reached 21.2 per cent, and data collected by the National Institute of Statistics and Censors showed that private real estate developers expected construction activity to grow by more than 19 per cent during the remainder of 2006. The outlook is also positive for 2007. "Next year will bring a renewal of growth in new niches for real-estate investments and a growing contribution from public sector projects", confirmed consulting firm Ecolatina.

So what is the implication of real estate growth for foreign buyers? Well, with Argentina's economy growing by an estimated 8 per cent annually and Argentine real estate group Camara Immobiliaria Argentina estimating that housing prices have increased by 50 per cent since 2002, buyers should be acquiring a healthy investment. With prices in prime real-estate locations only one-tenth of what they are in the United States and Europe, investors can also be confident of picking up a bargain.

Brazil is another Latin American country which is anticipating a property boom, according to experts researching for the  forthcoming UK-based Property Investor and Homebuyer Show. Some senior analysts predict that the country could offer investors up to 20 per cent capital appreciation over the coming mid-term. Factors contributing to the growth in Brazil's property market include a booming tourism industry, an increase in the profitability of the country's major companies, and European investment in both commercial and residential property, espeically along Brazil's north-west coast.

Interest has undoubtedly been fuelled by the refurbishment of the country's airports, which has resulted in a growth of both regular and chartered international flights. And by 2009, Natal, in the north-east of Brazil, will be home to the biggest airport in South America. GEM Estates offers apartments in villas in Porto dos Corais, a gated community just north of Natal, with prices starting at 40,000 euros for a one-bedroom apartment. "Seasoned investors will realise just how competitive these prices are", comments Adam Cornwell, director of GEM Estates, adding, "Although they will undoubtedly rise as public awareness grows and Natal matures."

Lastly, recent reports have hinted that Uruguay is the latest South American country tipped for a property boom. If you are one of those who likes to get in early, T5 Estates is offering plots in a brand new development, El Cardenal Azul, for approximately £80,000 per 5,000 square metres. The development is based near the beautiful town of Punta del Este ('the Pearl of the Atlantic'), overlooking Laguna Sauce, and residents will have access to numerous leisure facilities. 

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Article published in December 2006