Keeping up with Brazilian Real Estate Boom | Obelisk International News

The Brazilian government has just introduced new training initiatives to ensure Brazil keeps pace with construction work. The volume of building in the Brazilian real estate sector is so high that around 500,000 more professionals are needed.

Huge investment in Brazilian property, from both private and government sources, means the industry is currently undergoing massive expansion. One of the challenges facing this boom in real estate in Brazil is keeping up with the supply of workers.

New Courses

According to the latest edition of ‘Valor Economico’, the government has just announced funding for construction skills courses to train 25,000 workers in basic building skills. To be held throughout Brazil, the courses will provide training for jobs such as brick laying, painting, plumbing and joinery.

Courses are also in the pipeline for training in preparation for the 2014 World Cup, also a focus of major investment in Brazil. These courses will concentrate specifically on tourism and transport, two key infrastructure areas of the sporting event. Over 25,000 Brazilians will benefit from this training. In total, courses will be in place for training around 80,000 people in construction in Brazil.

However, the current volume of building work in the Brazilian real estate sector requires a higher number of professionals. According to the Brazilian Employment and Business Ministry, 500,000 people need to be trained if Brazil is to keep pace with demand for properties. The Ministry’s Director for Training, Ana Paula da Silva, says the government is planning to introduce further initiatives to keep up the supply of trained professionals.

Booming Construction in Brazil

Property in Brazil is, along with the commodity and agricultural industries, one of the most buoyant sectors of the Brazilian economy. In 2006, Brazilian real estate construction employed 1.8 million people. This figure rose to 2.8 million in 2010 when the sector generated 320,000 jobs, 13% more than in 2009. Unsurprisingly, unemployment in construction in Brazil is virtually non-existent.

Obelisk International expect this trend to continue for the next few years as the building industry strives to keep up with demand for properties in Brazil. Figures recently released from the Statistical Agency show that the National Index for Construction rose by 0.52% in March. This translates into a year-on-year variation of 6.88%, confirming the ever-increasing volume in construction of infrastructure and real estate in Brazil.

Once again, north east Brazil had one of the highest regional increases in the monthly construction index. This part of Brazil is consistently showing a high volume of construction of properties and has been earmarked by many developers in Brazil, including Obelisk International, as a key area for Brazilian investment.

Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
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Huge Potential for Brazilian Real Estate in 2011 | Obelisk International

For the majority of sectors associated with Brazilian real estate, 2010 was the best year ever for investment in Brazil. And all sectors are unanimous in predicting further excellent business beyond 2014.

The latest issue of ‘Revista SFI’, published by the Brazil Mortgages Association (ABECIP), offers an in-depth analysis of the current situation in the Brazilian property market with detailed insight from sector experts. The article finds that all sectors linked to real estate in Brazil (bankers, developers, suppliers, unions etc) are convinced that the property market will continue to grow healthily over the next few years.

Brazilian Mortgage Levels

The President of ABECIP, Luiz França, predicts that mortgages in Brazil will increase by 51% this year based on GDP growth of 4.5% and the continued rises in both salaries and employment. Mr França points out that in 2010 the value of Brazilian mortgages increased as well as the number of units financed. “This shows that average house prices increased, reflecting the healthy state of the market,” he says.

For Jose Machado, the Director of Santander in Brazil, 2010 was the best year so far for the sector. He believes that “everything points to 2011 delivering similar results,” because of the acute lack of supply of property in Brazil and the current low credit levels. Other banks in Brazil such as Bradesco, Caixa (the largest provider of mortgages in Brazil) and Itau echo these predictions.

North East Brazil Ahead in Growth

Joao Crestana, President of the Sao Paulo union of real estate businesses (Secovi), also believes in the healthy state of the Brazilian property market. He underlines the country-wide growth but highlights the north east of Brazil as a region where real estate construction and transactions are growing at a higher rate than other regions.

The article also includes improvements that Brazilian real estate experts would like to see. Several interviewees feel it’s important that Brazil’s credit facilities grow to provide an alternative to government financing when the Minha Casa Minha Vida social housing programme ends in 2014. And several voice concern over the lack of building land in Brazil’s largest cities such as Rio de Janeiro and Sao Paulo.

The article interviewees conclude that the factors driving the property market in Brazil mean there is plenty of room for growth. The article states that the Brazilian real estate market currently accounts for just 4% of Brazil’s GDP and that by 2014 this figure will have increased to 11%.

For Obelisk International, this room for growth proves beyond doubt the huge potential for investment in Brazilian property over the next few years. Obelisk International believes 2011 will be an exceptional year for real estate investment across all sectors of society in Brazil, from low-cost social housing to high-end luxury properties.

Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.

Brazilian Real Estate on Show | Obelisk International

Obelisk International News - The recent Rio Grande do Norte property exhibition showed that Brazilian real estate has plenty of buyers. They are mostly from the upwardly mobile middle classes, confirming the potential for property investment in this sector of Brazil’s population.

The 10th Salao Imobiliario held in Natal expected over 35,000 visitors and to do real estate business worth R$500 million. At the show – the second largest exhibition of property in Brazil – prospective homeowners had the opportunity to look round 200 stands. Some 50,000 properties situated in the state of Rio Grande do Norte were showcased to visitors keen to buy property in this part of Brazil, home to a population of around 3.2 million. The majority of developments are located in and around Natal, the capital city.

A World of Real Estate in Brazil

The 5-day exhibition offered a snapshot of the Brazilian property market as a whole. Visitors were able to look at the many different investment options available and enquire about financing. Caixa Economica Federal, the largest lender of mortgages in Brazil and sole financier of the Minha Casa Minha Vida social housing programme, was present.

Catering for all budgets, prices for properties at the exhibition ranged from R$55,000 to R$4 million. A wide range of property types were also available – from low-cost social housing to luxury beach-front properties in Rio Grande do Norte’s best locations. Resale as well as new Brazilian real estate was on offer.

Middle Classes Main Target for Property

Brazil’s middle classes are the main drivers behind the market for property investment in Brazil. This was very apparent at the Natal property exhibition where the middle classes made up the majority of visitors.

Within Class C, the typical profile of prospective buyers was a couple aged between 20 and 35, and aspiring to buy their first home. Many are recently married and about to start a family. Within Class B (the upper middle class), buyers were looking to upgrade their home to a more spacious property with at least 120 square metres.

The Natal Property Exhibition also reflected the other driver behind the Brazilian property market – the housing shortage. The city has a deficit of around 24,000 homes and this together with the lack of available building land has made neighbouring cities such as Parnamirim very popular, particularly for Minha Casa Minha Vida developments.

Exhibitors at the property show were unanimous that the market for property in north east Brazil is booming, both for first-time buyers and for the more discerning buyer. Obelisk International’s market research in north east Brazil has confirmed this buoyant market, which offers plenty of opportunities for investment across a range of buyer budgets and preferences.

Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.

Minha Casa Minha Vida Leads Brazilian Real Estate | Obelisk International

Obelisk International News - Social housing investment led the Brazilian property market last year. Demand for construction materials and mortgages in Brazil reached record levels in 2011 and analysts believe that this year will follow suit.

According to a recent report from the Brazilian Association for the Construction Materials Industry (ABRAMAT), high investment in Brazil and the rise in household expenditure during 2010 led to the highest ever sales of building materials. Last year, demand for materials increased by 15.7% and prices rose by 16.3%.

Social Housing at the Forefront

Minha Casa Minha Vida, the government programme and the largest investment in Brazilian real estate, started in earnest last year and was a major contributor to the boom in construction in Brazil. In 2010, the first phase of the programme was completed and funding was provided for 1.15 million low-cost housing units with total credit levels of R$83.4 billion.

With numbers like these, it’s hardly surprising that social housing was responsible for a sizeable part of these hikes in demand and price levels. The Brazilian government is firmly committed to the Minha Casa Minha Vida programme, which will build 2 million homes by the end of 2014. Obelisk International therefore expects further pressure on demand for building materials this year.

Record Credit Levels for Real Estate

Brazil is currently breaking records almost monthly when it comes to mortgages. Last year’s figures were the highest ever and with a strong first quarter from January to March, there’s every sign that 2011 will set another record.

The Association of Brazilian Mortgages estimates that loans for buyers of Brazilian property will reach R$84 billion this year. Together with the mortgages provided by the government for Minha Casa Minha Vida buyers, the total amount loaned for purchases of homes in Brazil is expected to run to R$108 billion, almost 30% more than in 2010.

For Obelisk International, 2011 will undoubtedly be a record year for all aspects associated with the real estate market in Brazil. The drivers behind Brazilian property – increasing wages, rising population and a chronic shortage of housing – are so strong, we can only expect the market to get stronger.

With this in mind, Obelisk International forecasts record levels of foreign investment in Brazil, particularly in real estate this year as more and more investors appreciate the true potential behind the Brazil property market.

Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
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Dilma is Good News for Brazilian Investments | Obelisk International

Obelisk International News - 100 days into government, President Dilma Rousseff is proving to be good news for Brazilian investment. With high popularity, raised credit rating and record levels of investment, Brazil is flying high under Dilma.

After just over three months in office, Dilma is enjoying huge popularity among the Brazilians. Her rating as a politician is currently higher than her mentor’s, Lula when he started as Brazilian president.

Dilma’s levels of popularity mean many analysts no longer question her credibility. According to the latest edition of ‘Dinheiro’ financial magazine, “rather than standing in Lula’s shadow, Dilma is overshadowing her predecessor”.

Two Compelling Reasons

Brazilians have several compelling reasons to be more than happy with Dilma’s record so far. Fitch Ratings recently raised the rating for sovereign debt investment in Brazil from BBB to BBB+. At a time when several countries are seeing their investment ratings fall, this is an indication of the buoyant climate for Brazilian investment.

As well as an improved rating for investment, Brazil is experiencing record levels of foreign investment under Dilma. During the first quarter of this year, Brazil investment inflows exceeded outflows by a massive US$35.2 billion. This hike represents an increase of 46.2% on last year’s levels of investment in Brazil.

Challenges for 2011

The Brazilian economy is booming and now stands in 7th place in the world ranking. The increasing affluent middle classes, hungry for consumer goods, ensure the economy continues to drive forward. Jim O’Neill from Goldman Sachs, the inventors of the BRIC acronym, claims Brazil is the most popular of the four BRIC nations for investment.

But Brazil also faces challenges this year. Inflation must be kept in check and Dilma’s government needs to closely monitor exchange rate appreciation. Dilma has already introduced measures to deal with these challenges and as she moves into the second quarter of office, there’s every sign that these measures are taking effect.

For Obelisk International, Dilma and her government are undoubtedly making moves that favour investment in Brazil. As well as actively encouraging foreign investment, Dilma’s government is continuing with social programmes such as Minha Casa Minha Vida, which affords excellent opportunities for investment in Brazilian real estate.

Obelisk International has also experienced record levels of investment in Brazil so far this year, coinciding with Dilma’s first 100 days. And we expect to see much more investment over her next years in office.

Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
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Brazilian Investments with Obelisk International

Tipped by major financial analysts as one of the world’s hottest destinations for foreign investment, Brazil offers big opportunities. But to ensure maximum wealth and security from your investment in Brazil, you need to invest with the experts.

Obelisk International is one of those experts. Over the last few years, Obelisk International has gleaned specialist knowledge in Brazilian investments. This expert know-how means investors can be sure of superior returns and peace of mind.

For example, one of Obelisk International’s latest Brazilian investments offers 50% fixed profit for investments with an entry level of just €50,000 over two and a half years. This translates into a secured profit of 20% per annum, practically impossible to source anywhere else on the investment market.

Best Opportunities in Brazilian Real Estate

Among the myriad opportunities for investment in Brazil, property represents one of the best. Obelisk International’s market research has earmarked the Brazilian real estate market as the one bringing together fundamental ingredients for real growth and by extensive, plenty of investment opportunities.

The drivers behind the booming market for property in Brazil include a huge (and growing) demand for homes from all sectors of Brazilian society and a massive deficit of housing. Added to this imbalance of supply and demand are the Brazilian middle classes, one of the fastest growing in the world and with increasing affluence.

Against this background, Obelisk International has sourced a small number of select investments. A firm believer in only offering investors the very best returns and highest security, Obelisk International has handpicked a selection of exclusive investments for clients worldwide.

Investment in North East Brazil

All these investments are situated in north east Brazil, a location chosen for several reasons. This region is expanding fast in population, wealth and infrastructure. It’s also one of the most attractive and a regular favourite in any Brazil guide. North east Brazil is increasingly popular with both Brazilian relocators and holidaymakers, providing a ready-made market for Brazilian real estate.

In 2009, Obelisk International was one of the first European developers to enter the Brazilian government social housing scheme, Minha Casa Minha Vida. These investment opportunities have been so successful that Obelisk International currently has over 3,000 social housing units under construction and management with a value in excess of €100 million.

Latest Brazilian Investment Opportunity

Successful investment in Brazil is all about the right local partners. Obelisk International has always chosen its partners carefully and the latest project launch is no exception. The project is in partnership with the most successful developer of real estate in Brazil, adding infinite prestige and further security to this Brazilian investment.

This new project allows investors in Brazilian real estate to build up a portfolio encompassing a whole range of different property types and budgets. With a low entry level of €50,000, investors will achieve fixed profits of 50% plus full capital return over just two and half years.

When high and secure returns are few and far between, especially for the non-high net worth investor, Obelisk International with its expert knowledge on Brazilian investments is offering the perfect investment: returns of 150% in an investment with a high profile partner from just €50,000. Where better to put your money?

Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
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Brazilian Real Estate on Show | Obelisk International

Obelisk International News - The recent Rio Grande do Norte property exhibition showed that Brazilian real estate has plenty of buyers. They are mostly from the upwardly mobile middle classes, confirming the potential for property investment in this sector of Brazil’s population.

The 10th Salao Imobiliario held in Natal expected over 35,000 visitors and to do real estate business worth R$500 million. At the show – the second largest exhibition of property in Brazil – prospective homeowners had the opportunity to look round 200 stands. Some 50,000 properties situated in the state of Rio Grande do Norte were showcased to visitors keen to buy property in this part of Brazil, home to a population of around 3.2 million. The majority of developments are located in and around Natal, the capital city.

A World of Real Estate in Brazil

The 5-day exhibition offered a snapshot of the Brazilian property market as a whole. Visitors were able to look at the many different investment options available and enquire about financing. Caixa Economica Federal, the largest lender of mortgages in Brazil and sole financier of the Minha Casa Minha Vida social housing programme, was present.

Catering for all budgets, prices for properties at the exhibition ranged from R$55,000 to R$4 million. A wide range of property types were also available – from low-cost social housing to luxury beach-front properties in Rio Grande do Norte’s best locations. Resale as well as new Brazilian real estate was on offer.

Middle Classes Main Target for Property

Brazil’s middle classes are the main drivers behind the market for property investment in Brazil. This was very apparent at the Natal property exhibition where the middle classes made up the majority of visitors.

Within Class C, the typical profile of prospective buyers was a couple aged between 20 and 35, and aspiring to buy their first home. Many are recently married and about to start a family. Within Class B (the upper middle class), buyers were looking to upgrade their home to a more spacious property with at least 120 square metres.

The Natal Property Exhibition also reflected the other driver behind the Brazilian property market – the housing shortage. The city has a deficit of around 24,000 homes and this together with the lack of available building land has made neighbouring cities such as Parnamirim very popular, particularly for Minha Casa Minha Vida developments.

Exhibitors at the property show were unanimous that the market for property in north east Brazil is booming, both for first-time buyers and for the more discerning buyer. Obelisk International’s market research in north east Brazil has confirmed this buoyant market, which offers plenty of opportunities for investment across a range of buyer budgets and preferences.

Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
Follow us on Twitter (Obelisk International) and LinkedIn (Obelisk International).

US Investment in Brazil | Obelisk International

News by Obelisk International - President Obama’s recent visit to Brazil has confirmed the country as a top priority for US investments. Brazil’s growing importance on the world stage was also highlighted on the visit.

In his first visit to Latin America, Obama emphasised Brazil’s presence and economic power in the region. “The United States doesn’t simply recognize Brazil’s rise, we support it enthusiastically,” Obama said at a press conference during the visit. With US$198 billion in the US Treasury, Brazil is its fourth largest creditor. Brazil is also an important trade partner and US exports to Brazil have more than doubled since 2005.

Talking about Brazil’s spectacular economic growth last year (7.5%) and its consolidated economic and international progress, Obama said that Brazil no longer needs to “wait for a better day”. For Obama, Brazil “is the country of the future no more. The people of Brazil should know the future has arrived. It is here now,” he said in Rio de Janeiro.

One of the objectives of Obama’s visit was to strengthen US Brazilian investment and during the US Premier’s visit, representatives signed numerous agreements. A trade and economic agreement was also reached to allow eventual non-tariff trade. An area of particular interest for US investment in Brazil is oil and the US is expected to be a key importer of Brazil’s black gold. “We want to be one of your best customers,” Obama said, referring to sales of Brazilian oil.

Along with oil, the forthcoming World Cup and Olympics are another focus of American investment in Brazil. Numerous entrepreneurs accompanied Obama to source opportunities within the US$200 billion investment in the infrastructure required for the two events.

Obama also referred to Brazil’s stable democratic system and cited it as model for North African and Middle Eastern countries currently striving to achieve democracy. Brazil “shows how democracy delivers both freedom and opportunity to its people,” the American President said.

But perhaps the clearest sign of Brazil’s coming of age as an established world power came when Obama stressed that Brazil and the US stand on equal footing. "As you confront the many challenges you still face at home as well as abroad, let us stand together as equal partners," Obama said.

For Obelisk International, Obama’s first visit to Brazil confirms two facts: firstly, that Brazil has achieved full international recognition and is now an indispensable player on the global economic and political scene. Secondly, Obelisk International believes that the visit confirms the potential for investment in Brazil – the huge US interest in Brazilian investments underlines the country’s investment prominence.

Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
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