Foreign Investment in Brazilian Real Estate Higher Than Ever | Obelisk International News

While real estate investment in many countries flounders, foreign interest in Brazilian property has never been higher. 2011 saw record investment in Brazilian real estate and analysts expect more of the same this year.

According to the Brazilian investment agency ADIT Invest, financial transactions made by foreigners for real estate in Brazil rose by 50% in 2011. Top Rio de Janeiro property agents report that purchases by foreigners made up 30% of their business last year with the average property costing around R$2 million. Real estate professionals in Sao Paulo echo this and say that most foreigners are buying up property in Brazil for investment.

All the Right Criteria

Brazilian real estate is ticking more and more boxes for more and more foreign investors. At the top of the list sits a stable economy, particularly in today’s turbulent economic times. “The watchword for foreign investment in Brazil appears to be economic stability,” comments Gary Hardacre, CEO of Obelisk International, one of the main foreign companies investing in property in north east Brazil.

“Because Brazil has been virtually unaffected by the recent uncertainty and is presenting strong growth figures for 2012, more investors are turning to Brazil,” says Mr Hardacre. Predicted 4% GDP growth and record unemployment levels lead Obelisk International along with other foreign companies to expect to see more interest in Brazilian investment this year.

Big domestic drivers also form part of the attraction of investment in real estate in Brazil. These drivers include massive demand for housing from the ever-growing middle classes, whose greater purchasing power means thousands aspire to getting a foot on the property ladder. This demand is another major reason behind the current popularity of investment in Brazilian property.

Foreign Real Estate Companies Expanding

The tandem of strong domestic demand and increasing foreign interest has led many Brazilian real estate companies to expand their business in Brazil. Companies are increasingly providing websites in three languages – Portuguese, Spanish and English – to cater for new foreign investors and many agencies are opening offices outside Brazil.

And in turn, foreign companies dedicated to real estate in Brazil are strengthening their presence. According to Virginia Duailibe, President of the Brazilian Real Estate Association, “many large real estate multi-nationals such as CBRichard Ellis, Jones Lang LaSalle and Colliers International are expanding operations in Brazil”.

On the back of the big demand from the domestic market and foreign investors, analysts are convinced that 2012 will be another promising year for Brazilian real estate investment.

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

North East Brazilian Investment Guaranteed | Obelisk International

The Brazilian President has confirmed the government’s commitment to investment in north east Brazil. The investment total will run to R$120.4 billion.

President Dilma Rousseff visited north east Brazil this week to introduce a new bill for the region. For Dilma, the bill defines “the new north east” and guarantees Brazilian investments in this part of the country.

Through the R$120.4 billion investment sum, the government will maintain conditions for the economy in north east Brazil to grow at higher rates than the rest of the country.

One of the poorer regions of Brazil, the north east has recently seen high economic growth fuelled by sectors such as construction and real estate. Last year’s increase in civil construction in Brazil’s north east was one of the highest in the country and the area has been earmarked by top Brazilian real estate companies for expansion.

Brazilian Government Investment Priorities

For Dilma, several conditions are necessary for north east Brazil to make further economic progress. Public investment in infrastructure is a top priority, particularly for the 2014 World Cup. Job creation is another concern along with better income distribution.

Although the Brazilian government has just approved a R$50 billion budget cut, Dilma has pledged that she will maintain investment in north east Brazil. Investment in flagship social programmes such as Minha Casa Minha Vida (Brazil’s social housing scheme and one of the world’s largest real estate investments) and infrastructure improvements will remain in place.

Favourable Environment for Investment

North east Brazil, one of the current hot spots for investment, plans to nurture its favourable environment for investors, both foreign and Brazilian. Although investment levels in the region are good, Dilma defended the need for these to increase and called for a rise in private investment.

“Our objective is to create a comfortable environment for current or new investments and to reinforce our commitment to long-term investments,” she said.

Obelisk International welcomes this firm government commitment to investment in north east Brazil. Obelisk has been present in the area for several years and is firmly convinced of the region’s potential. We believe that the government pledge to maintain investment sums is excellent news for both our current and future investors.

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).