New Guide to Investment in Brazil

Obelisk is pleased to announce the publication of their Brazil Investment Guide. This brand new guide offers 24 full-colour pages of information about the many investment opportunities available in Brazil. The guide is downloadable free in pdf format from the Obelisk website.

Although the new Brazil Investment Guide forms part of the Obelisk tradition of providing cutting-edge investment information, it represents a departure from our property investment guides. While the new guide offers extensive insight into the booming property market in Brazil, it also explores the many other options awaiting the investor in Latin America’s largest country. At Obelisk, we felt that there were just too many opportunities available in Brazil to restrict a guide to property.

This new guide therefore takes on a wider perspective and examines the many focal points for foreign investment in Brazil. These include the construction industry, commodities, agriculture, social housing and stocks and shares. Readers of the guide might be surprised to discover that 19% of the world’s agricultural land is in Brazil; that annual sales in construction materials are predicted to rise by almost 70% by 2016; and that since 2005, Brazil has the world’s second highest growth rate in clean energy investment. Not to mention that the government is building 3 million low-cost homes by the end of 2014 within the Minha Casa Minha Vida programme.

The Obelisk Brazil Investment Guide takes a look at the many investment opportunities in Brazil against a background of emerging markets worldwide. Brazil, along with China, India, Indonesia and Russia, is at the forefront of emerging market economies, widely expected to lead the global economy in the very near future. The guide also outlines the Brazilian economic and political scenes as well as Brazil’s exciting future. This future is about to unfold to the tune of vast oil exploitation, the 2014 World Cup and 2016 Olympics. In addition, there are facts and figures about the economy, foreign investment and Brazil’s currency, the real.

Obelisk has been present in Brazil for a number of years and we are well aware of the huge investment potential to be found there. We are also aware of the difficulties. Although it’s widely considered the current ‘land of opportunity’, Brazil is not an easy country to do business in. And this new guide to Brazil sounds a note of caution for investors. The twin barriers of language and business culture mean that many doors are closed to newcomers in Brazil who do not have bona fide local associates. ‘Who you know’ is fundamental to Brazilian business practice and the basis to successful investment. Being prepared to carry out due diligence is another pillar of profitable investment.

As successful investors in Brazil, Obelisk believes that the new guide offers an essential snapshot of opportunities for investment in Brazil. The guide provides the first step to investment – that all-important background knowledge. Why not download your free copy of the Brazil Investment Guide from the Obelisk website www.obeliskinternational.com.

For more information on investing and to find out about Obelisk's latest projects, contact us on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.

Boost for Brazil Property

Further confirmation of the buoyant Brazil property market comes with the news that Equity International is raising US$500 million for investment in Brazil real estate. These funds add to the already booming property industry, set to see at least 13.7 million homes built by 2016.

Owned by billionaire Sam Zell, Equity International is already a major player in property in Brazil and a huge advocate of the investment potential to be found there. Speaking about this latest raising of funds to Bloomberg Businessweek, Equity International CEO Gary Garrabrant said, “Our enthusiasm for Brazil could not be higher” and quoted “local demand that is unparalleled”.

A major engine behind this unprecedented demand is the fast-expanding middle class. Having grown from 42% of the population in 2002 to its current 53%, the Brazilian middle class is increasing affluent – average monthly income has grown a massive 40% over the last five years.

And top of middle class Brazilians’ wish lists is property. Mr Garrabrant stated that at least 1.5 million new households are formed every year in Brazil with developers building around half that figure. This imbalance of demand and supply for property in Brazil leads Equity International to believe that “there are no constraints to growth for the homebuilding sector”.

Equity International has shares in Gafisa, the second largest property developer in Brazil by revenue. Gafisa is a majority shareholder of Tenda, one of the biggest low-cost property builders in the country and the only developer catering specifically for homes aimed at the lower income bracket.

Along with many developers including Obelisk, Tenda is part of the social housing programme, Minha Casa Minha Vida, benefitting millions of low-income Brazilians. The scheme, which aims to build 3 million homes by the end of 2014 (one million this year) is widely acclaimed as one of the major factors behind the current boom in the Brazil real estate market.

Hand-in-hand with the thriving property market in Brazil goes a booming mortgage market. Equity International also sees strong potential for growth and investment here. The company has a stake in Brazil Finance & Real Estate Participacoes SA with the aim of developing the still-emerging market for mortgages in Brazil.

According to Mr Garrabrant, Brazil has fewer than 400,000 home loans, which he believes is the equivalent to the number in the Upper East Side of Manhattan. When asked if Brazil will catch up, he adamantly replies, “No question”.

For Obelisk, the latest move by Equity International consolidate the wide-ranging consensus that there is huge potential to be found in property investment in Brazil. And we believe that this potential comes at all levels – exciting opportunities are available in social housing as well as in luxury properties. Whatever your choice or entry level, Brazil real estate offers potential for high returns right across the spectrum.

For more information on investing and to find out about Obelisk's latest projects, contact us on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at www.absoluteguideseries.com.