Gulf Investors Snapping up Brazil Property

Gulf investors are flocking to invest in Brazilian property, citing the potential value increases to come from the World Cup being held across the country in 2014 and the Olympics in Rio de Janeiro in 2016.

"The country is very high on our agenda for investments," said Rakesh Patnaik, executive director real estate, TFI, subsidiary of Barwa Bank Qatar.

"As GCC investors we see the World Cup and Olympics as very positive for value creation, which starts now and can only go up until the events take place," he added.

While the two major sporting events are a big part of the reason, they are not the only string to Brazil’s bow. According to Patnaik 8 out of every 10 billion US Dollars invested in Latin America is invested in Brazil.

This is put down to the fact that Brazil is a large country, with vast natural resources and a varied economy, as well as political stability and a clear economic strategy that has seen many of the country’s poorest people brought up into the middle and upper classes in recent years, greatly increasing demand for housing.

Presidential elections are in full swing, but André Gutierrez Pereira, head of urban development, technical advisory, Sao Paulo City Hall denied any notions they could imply change for investors.

"The laws, such as for the financial market, have been stable for the last 15 years. Whoever wins is likely to implement the same policies as they have proven successful over the last couple of years," he said.

His thoughts were confirmed by Arabella Peterson, of Grup Immobiliari Natal Brasil, winner of best developer Latin America in the 2010 OPP awards, she also gave her thoughts on why Brazil property is currently so popular:

"Brazil´s economy is going from strength to strength and there is a huge demand for housing combined with a mortgage market that has only recently become accessible to the local people," she said, before listing the following points:

"GDP in Brazil continues to show strong and sustainable growth; Average for 2010 at the end of Q2: 8.9%," she said.

"There is a consistently decreasing unemployment rate – it reached 6.7% in August of 2010," she added.

Grup Immobiliari Natal Brasil is responsible for the Dr Geraldo Furtado, one of the fastest selling developments in Brazil’s history. There are only a few units left in the development, so anyone interested in investing in affordable housing in Natal, Brazil should check it out.

Join The Conversation - Be The First To Comment

Categories: Brazil Property / Property Invest

Tags:

Like What You Read? Stay In Touch

Follow Colordarcy on Twitter or Facebook