Dollar rise boosts investment in US real estate market

By Alex Pandini

12/19/2024

The dollar's surge in 2024 has put Brazilian investors on alert, especially those seeking to protect and diversify their assets. With an appreciation of around 20% against the real through November, the US currency has established itself as a safe alternative amid economic uncertainty, making the US real estate market one of the most promising opportunities for 2025.

This movement is not recent. Since 2019, when the dollar was trading at around R$3.70, the currency has shown a constant appreciation curve, reaching over R$6.00 in 2024.

For Daniel Toledo, an attorney who works in the area of international law and founder of Toledo e Associados, an international law firm with offices in Brazil and the United States, the strategy of dollarizing part of one’s assets has become essential. “The dollar has further consolidated its position as a safe asset for wealth diversification. The history of consistent appreciation in recent years reinforces the importance of considering investments in dollarized assets, such as real estate in the United States, which offer financial returns and long-term security,” he says.

Why invest in dollars?

Investing in dollars goes beyond protecting your assets against exchange rate fluctuations. It is also a way to access rising markets and structure investments in more solid assets, such as American real estate. According to Toledo, the different regions of the US offer opportunities for different investor profiles, whether in luxury real estate or in properties with more affordable values and potential for appreciation.

For Brazilians interested in investing in the American real estate market, one of the most relevant options is the EB-5 visa, intended for investors who invest at least US$800,000 in areas designated as high unemployment (Targeted Employment Areas) or US$1.05 million in other regions, generating at least 10 jobs in the US. This category offers a direct path to a Green Card, allowing permanent residency in the country.

Visa

Another alternative is the E-2 visa, which is aimed at investors from countries with trade agreements with the United States. Brazilians with dual citizenship – such as a European passport – can use the E-2 to invest in and manage real estate businesses, but must demonstrate that the investment is substantial and that the venture will be economically viable.

Markets like Miami continue to attract high-end investors, interested in luxury properties that can function both as vacation homes and as a way to preserve assets. Other cities, such as Orlando, Dallas and Houston, are standing out for their combination of cost-benefit and accelerated growth. “Growing regions in the United States have presented favorable conditions for both families seeking quality of life and investors seeking appreciation,” explains Toledo.

According to the lawyer, another point that favors the real estate market in the United States is economic stability and predictable return on investment. “Investing in real estate in the United States means betting on a stable market, with clear rules and a scenario of continuous appreciation, especially in places with strong demand,” he concludes.