Spanish bank Santander aims to raise as much as 13.1 billion reais ($7.2 billion) through the initial public offering of its Brazilian unit, giving the Spanish bank more heft to take on rivals in Latin America's largest economy.

Banco Santander SA, Spain's largest bank, will sell 525 million units at 22 reais to 25 reais. Each unit will include 55 common shares and 50 preferred shares. The offering, managed by Credit Suisse AG, is equivalent to 16.2 percent of the current capital of the Brazilian unit.

Daragh quinn, an analyst at Nomura International in Madrid said that the maximum amount is slightly higher than the expectation and it may be an indication of strong demand. She added that the sale will strengthen Santander's capital position and will help fund possible growth opportunities in Brazil.

Santander Chairman Emilio Botin said that the bank planned to invest 2.56 billion reais in Brazil and open 400 branches as it seeks to become the country's biggest non- government lender. The bank, based in the Spanish city of the same name, has a market share of 10.2 per cent with over 3,600 branches across the country, having expanded via six domestic takeovers in the past 12 years.

In a boost to Brazilian property owners, who have seen the country's economy pulling itself out of recession in the second quarter thanks to a rebound in the industrial and service sector. According to data from Dealogic, if successful, the listing would be the biggest in Brazil and rank as the second-biggest in the world this year, behind the $7.34 billion IPO of China State Construction Engineering Corp.

Labels: Economy

Wal-Mart Stores Inc. (WMT) will invest 1.6 billion Brazilian reals ($800 million) in Brazil during 2009 in the expectation that the local economy will recover in the second half, said the company's chief executive at a press conference in Sao Paulo.

According to the local Estado newswire, Wal-Mart Brasil CEO Hector Nunez said the company plans to open around 90 shops this year, which will generate about 10,000 new jobs, concentrating on the Todo Dia and Maxxi chains that cater to lower income brackets. He said that Wal-Mart expects the Brazilian economy to grow in the region of 1.5% to 1.8% in the second quarter of this year.

Mr. Nunez commented: "The Company will have a good year and growth so far is quite positive. For the second quarter we have a good performance, if not as good as the first."

Wal-Mart competes with Brazil's Companhia Brasileira de Distribuicao (CBD) and France's Carrefour SA (12017.FR) on the local market. Despite the economic crisis, Wal-Mart registered revenues of 17 billion reais (7.4 billion U.S. dollars) in 2008, up 17.1 percent from 2007, according to xinhua news agency reports.

In related news, The North East Process Industry Cluster (NEPIC), a British organization has signed a memorandum of understanding with the Pernambuco region of Brazil, with the deal working on a number of synergies with the area, which may boost the number of people looking for property in Brazil.

Labels: Economy, Latest-News

Brazil will account for 31.80% of Latin American regional oil demand by 2013, while providing 27.36% of supply, according to a new report.

According to the Brazil Oil and Gas Report Q2 2009 by Business Monitor International forecasts, Demand from foreign buyers for oil exports is currently exceeding the pace of supply expansion and Brazil will account for over 30 per cent of Latin America's regional fuel demand by 2013.

The 2009 BMI gas oil forecast is for an average price of US$67 per barrel (bbl), assuming a monthly high of US$77.30/bbl in December which will be a 45% downturn from the 2008 level. This could see a significant amount of income generated for the Brazilian economy by oil sales meaning property investors in could benefit.

With Oil consumption between 2007 and 2018 is set to increase by 41%, Experts are forecasting an increase in Brazilian oil production of 135%, with crude volumes rising steadily to 4.3mn b/d by 2018. Gas production is expected to rise gradually, from an estimated 12.5bcm in 2008 to 35.0bcm by 2018. As a result of this, Brazilian real GDP growth is now predicted by BMI at 2.3% for 2009, followed by a 2.6% growth in 2010, 4.3% in 2011, followed by 4.5% in 2012 and 4.1% in 2013.

Recently, evidence of oil was found in the Santos Basin and the C-M-401 block in the Campos Basin off the coast off Rio de Janeiro. Paulo Wrobel, representative from the economic and trade sector of the Brazilian embassy commented: "There is a consensus now, not only in Brazil but amongst other countries, that they represent probably the largest discovery of oil of the last 25 to 30 years. It is quite a large deposit of oil and gas there; it is a boom area in Brazil and attracting a lot of interest from foreign investors because most of it is under control of the Brazil's state-controlled energy company Petrobras."

Petrobras announced plans to build five new oil refineries at a cost of more than £60 billion in Brazil by 2017. The refineries are likely to fuel demand in parts of the Brazilian property market, as they will lead to thousands of jobs being created both at the sites themselves and in support industries.

Labels: Economy, Latest-News

Investors are advised to look at property for sale in Brazil because of the country's strong economy, according to an expert.

James Gonzalez, market analyst at Obelisk Investment Property, says that the country is "stable" under the leadership of President Luiz Inacio Lula da Silva and says the economy is "thriving" as the exports grew by nearly 15 per cent last month and people have the confidence to spend money. The Economic Commission for Latin America also reported that the country's stock market registered a healthy trade surplus of $3,700 billion (£2,456 billion). Mr. Gonzalez has said that this tendency looks set to continue for the rest of the year, which is likely to be good news for Brazilian property investors

Paulo Wrobel, from the commercial section of the Brazilian embassy in London states that South American nation is likely to perform better during the recession than developed countries because the markets are "very robust". Mr. Wrobel asserts that the regulations in place in Brazil are very strict for the last decade or so and the country has not seen the kind of turmoil experienced by other major powers.

He commented: "The construction is growing quite substantially but there was no madness in terms of lending for those without the capacity to pay."

A consensus between analysts in the field of Latin American finances has found that Brazil and Mexico will be the healthiest economies in Latin America in 2009, Property Abroad reports. Property investors in Brazil will also experience a stronger-than-average drop in inflation, the magazine asserts.

Meanwhile, Brazilian property investors could be interested to hear that Mr Meirelles, the president of the Latin American nation's Central Bank predicts the economy will grow at a rate faster than the global forecast of two per cent.

Labels: Economy, Investment-property

Investors are advised to look at property for sale in Brazil because of the country's strong economy, according to an expert.

James Gonzalez, market analyst at Obelisk Investment Property, says that the country is "stable" under the leadership of President Luiz Inacio Lula da Silva and says the economy is "thriving" as the exports grew by nearly 15 per cent last month and people have the confidence to spend money. The Economic Commission for Latin America also reported that the country's stock market registered a healthy trade surplus of $3,700 billion (£2,456 billion). Mr. Gonzalez has said that this tendency looks set to continue for the rest of the year, which is likely to be good news for Brazilian property investors.

Paulo Wrobel, from the commercial section of the Brazilian embassy in London states that South American nation is likely to perform better during the recession than developed countries because the markets are "very robust". Mr. Wrobel asserts that the regulations in place in Brazil are very strict for the last decade or so and the country has not seen the kind of turmoil experienced by other major powers.

He commented: "The construction is growing quite substantially but there was no madness in terms of lending for those without the capacity to pay."

A consensus between analysts in the field of Latin American finances has found that Brazil and Mexico will be the healthiest economies in Latin America in 2009, Property Abroad reports. Property investors in Brazil will also experience a stronger-than-average drop in inflation, the magazine asserts.

Meanwhile, Brazilian property investors could be interested to hear the president of the Latin American nation's Central Bank predicts the economy will grow at a rate faster than the global forecast of two per cent.

Labels: Economy, Investment-property

Brazil has maintained its investment-grade credit rating in Standard and Poor's latest report due to its external liquidity position and improved fiscal dynamics.

Standard and Poor's analysts said in a statement that the BBB rating reflects the dramatic improvement in Brazil's external and public sector balance sheet. It also praised Brazilian government for their commitment to low inflation and a primary budget surplus "that has dispelled previous concerns over medium-term fiscal sustainability." The analysts added that declining interest rates will progress growth and reduce the cost of government debt, while Brazil’s change to a net creditor from a net debtor will help shield the country from global economic recession.

Brazil was appointed investment grade by Standard and Poor's at the end of April 2008 and in the latest report it has retained the credit rating. President Luiz Inacio Lula da Silva's popularity also will be supportive in pushing through policy changes needed to tackle "significant economic challenges" this year; however, S&P expects Brazil's economy to shrink 1 percent in 2009.

During an address at an investor conference in New York, Brazilian president contradicted predictions that the country's financial system will shrink in 2009 and said that it will expand this year as the economy was well prepared for the global financial crisis.

"We will grow in 2009 less than what we would like, less than we could grow if there was no external crisis. But we will grow," he said

The stable outlook on the BBB- long-term credit rating, the lowest investment-grade level, is "supported by the government's commitment to prudent macroeconomic policies," bloomberg .com reports.

Labels: Economy, Investment-property

Brazilian government announced a massive 34 billion reais ($15.1 billion) program to build a million homes for low-income families as President Luiz Inacio Lula da Silva seeks to spark growth in the country's economy.

According to Dow Jones news agency, the federal government would provide BRL16 billion in subsidies for the plan and that the remainder would come from other sources, including the FGTS federal severance guarantee fund and the the Banco Nacional de Desenvolvimento Economico e Social (BNDES) national development bank. Budget Minister Paulo Bernardo confirmed that the housing plan would cost the government 6.5 billion reais this year, spending that will be diverted from other unidentified areas.

The long-awaited plan, called My House, My Life, is seen dropping the country's housing deficit by up to 14%. The plan also intends to create 700,000 jobs all over the country as construction companies increase hiring.

Finance Minister Guido Mantega said that the program is aimed at helping finance home construction for low-income families earning between three and 10 times the minimum wage per month. Brazil's minimum wage is currently set at BRL465 a month. Brazil's president Luiz Inacio Lula da Silva said during a televised event announcing the program," the government would quickly disburse related funds”.

The Finance Minister commented: "There is no doubt this is a bold program and of great impact on the Brazilian economy. For sure it will be one of the main anti-crisis programs this government will launch".

Equity investors are optimistic that Brazil's housing plan, which aims to build one million homes by 2011, could help jump-start the economy. Brazilian property has been boosted by the housing plan; industry experts believe that there has been a recent turnaround in the property sector due to the government implementing new initiatives, with January and February sales rising quite substantially, although many of them emphasize that the emerging markets are the property sector and tourist sector, with plenty of interest from foreign investors.

Labels: Economy, Latest-News

Overseas investors looking for property in Brazil may be interested to learn that the country's sound financial system and its status as a creditor will help it to boost its international credibility, according to an industry expert.

Carlos Caicedo, writing for the Latin Business Chronicle said that the nation has a growing economy despite the global credit crisis and recession. He added that the commodity boom as well as the expansion of the country's middle class and its rising purchasing power is responsible for stronger economic growth. Overseas investors are attracted to property in Brazil because of the booming economy, low prices and large volume of new-builds.

Andre Loes, chief ecomomist at HSBC Brazil told that the country has improved its economy from the 1990s when it had a weak balance of payments, Washington post reports.

He also said that the government established an inflation-targeting regime in the late 1990s and early 2000s and approved a fiscal expenditure law. The state could only rise spending if it raised taxes. According to BuyAssociation, the country's economy has been performing well recently and that the Brazilian government has taken steps to make sure it is in a good position compared to other countries economies.

In related news, a consensus between analysts in the field of Latin American finances have that Brazil is likely to have the strongest fiscal environment on the continent, Property Abroad states.

Labels: Economy, Latest-News

Brazilian property sector is benefiting from the increase in the foreign investment in Brazil last year, new reports suggest.

According to figures from the United Nations (UN) Conference on Trade and Development, Brazil attracted the most foreign direct investment (FDI) of all the Latin American countries last year as it has amounted to $41.7 million (£30.1 million) last year compared to $34.6 million in 2007. Cross-border mergers and acquisitions also increased by 13.6 per cent, generating $9.7 million for the country in 2008 compared to $8.6 million in 2007. Brazil was also the biggest origin of funds going the other way as it invested $7.07 billion last year compared to £28.2 billion the previous year.

According to Brazzilmag, the Brazilian Central Bank's Focus bulletin for 2008 has stated that the ratio to find the sum of all goods and services produced by the nation has also been revised and increased to 41.30 per cent and earlier it was calculated as 41.20 per cent.

The Economic Commission for Latin America and the Caribbean (Eclac) has showed Brazil’s FDI totaled $106 billion (£53 billion) in 2007, according to ANBA. Brazil saw an increase of more than 84% from the previous year, and the services sector received the greatest amount of FDI which suggests there could be greater tourist figures this year. The growth in economy means that property values are also on the up, which means investors who buy early could benefit from capital appreciation.

Meanwhile, Brazil was tipped to receive further foreign investment boosts this year after it had been appointed investment grade by Standard & Poor.

Labels: Economy, Market-Trends

It's good news for Brazil’s economy and wonderful timing for investors looking for an overseas property as Experts said that Brazil economy in 2008 is its best growth in 14 years.

MercoPress has cited The United Nations Economic Commission for Latin America and the Caribbean and reported that Brazil's economy will have grown by 5.8 per cent by the end of the year. Brazil's overall growth during 2008 is the highest figure since 1994. Finance minister Guido Mantega said that the Programa de Aceleração do Crescimento - PAC (Accelerated Growth Programme), the strong domestic market and the government's investments all contributed to the strong growth.

John Welch, The chief global economist of Itaú bank recently said Brazil's economy is one of the best prepared to face the global crisis and will not enter into recession in 2009. Welch identified two main reasons why Brazil is well placed to defy the global downturn: the surplus in its external trade in commodities is relatively small (5% of GDP), prudent monetary and fiscal policies and deepened their structural reforms have been implemented over the last decade.

This comes after the news that Property Bond International claims that there is an immediate requirement for 8.5 million homes in Brazil this requirement is rising by 1.5 million every year due to the nation having such a young population

Labels: Economy, Investment-property

According to the Xinhua news agency, Brazil will continue to maintain the investment flow so the impact of the economic downturn being experienced by Europe and the US does not result in "exorbitant costs." Dilma Rousseff, minister-chief of the Civilian Household of the Presidency told the House of Deputies that the Brazilian President intends to tackle the economic slowdown.

Brazil has spent $22.9 billion (£13.9 billion) on stabilizing the currency against the US dollar, the Associated Press reported. The investments the government has made to boost its economy is through swaps, loans and direct auctions of dollars that will not be put back into the $200 billion the country has in reserves.

Meanwhile, a new report released by Real Capital Analytics stated that Brazil real estate enjoyed a rise of 40 per cent during the first six months of this year but Emergency markets accounted for one quarter of all property sales in the first-half of 2008 - up from ten per cent in the same period last year.

This comes after The Brazilian Society of Transnational Corporations and Economic Globalization revealed that Some £17 million was invested in the nation by people from other countries last year.

Labels: Economy, Infrastructure

Guido Mantega, the finance minister of Brazil said that the nation is "stronger than ever" despite the global gloom and Brazil is in a more favorable situation than that of the rich countries. The minister claimed the situation in Brazil is under control thanks to a number of counter-cyclical measures taken by the government and domestic market is also growing.

President Luiz Inacio Lula da Silva also confirmed finance minister views and said that Brazil's economy will grow by four per cent in 2009.

Finance minister added that there is no need for an additional package to spur on the economy. There will be a deceleration and once that juncture is passed, Brazil will be in favorable conditions to continue growing. He believes the exchange rate will continue to move downwards, which could be good news for people buying property in Brazil

Meanwhile, ADIT Nordeste and the tourism ministry took part in an overseas real estate exhibition to show the potential of Brazilian property, reports Homesgofast.com.

Labels: Economy

Foreign investors thinking about buying property in Brazil may be interested in initiatives the government has made to boost its economy to withstand the global economic crisis, China's state news agency has reported.

Henrique Meirelles, the president of the Latin American nation's Central Bank, has said that to the Xinhua agency that the economy will grow at a rate faster than the global forecast of two per cent, reports Ready2Invest.co.uk. Indeed, he predicts that it will grow at a higher rate than the anticipated global average of two per cent. He also added that Brazil will undergo a deceleration in the credit next year, but in a much lower pace than many countries.

Mr Meirelles went on to say that the central bank still had more than US$200 billion in foreign reserves despite taking action to curtail the effects of the ongoing worldwide economic issues. The bank has spent approximately US$77 billion to improve liquidity levels and make sure credit is offered in all areas of the economy.

A spokesperson for the Embassy of Brazil in London has stated that property prices in Brazil have been growing to the tune of 20 per cent per year and the volume of property in Brazil being bought increased by 80 per cent in 2007.

The Brazilian economy has grown faster according to President Luiz Inácio Lula da Silva and he has pledged to help the nation become even more independent, according to MercoPress.

Labels: Economy

Prospective investors interested in Brazilian property might like to know that the nation's central bank claimed that the country is strong enough to face the current economic crisis as the nation's primary surplus is "already" greater than that of 2007, it has been reported.

According to the Brazil Arab News Agency, the most important factor in intensification of the nation's economy is reducing the domestic foreign currency debt and the Brazilian Central Bank revealed the country has saved more money up to the end of August this year to pay off national debt than it did in the whole of 2007.

In the latest figures on the central government's total primary surplus - The money saved by the public sector to pay interest on the country's debt- has reached $55.4 billion (£27 billion) till August whereas it totaled 101.606 billion reals (US$ 52 billion - the values are at current exchange rates for evaluation purposes) in the whole of last year. For the year, the primary account surplus is now well above the US$ 11.4 billion (33.1 billion reais) target in the IMF agreement.

Joaquim Levy, Brazil's secretary of the National Treasury has said that the increase in Brazilian primary account surplus target will boost the economic climate, particularly for private investors. This is good news for those buying property in Brazil as their investments in Brazilian housing market would return higher profits.

Labels: Economy, Market-Trends

The steady growth of the Brazilian economy means property prices are likely to carry on rising, a market expert has said.

According to The Motley Fool, the average mortgage in Brazil covers just 60% of the value of the home, compared with 90% in US. This means less risk for lenders who would therefore be more likely to lend. Interest rates in Brazil have plummeted from 25 percent in 2003 to 11.5 percent in 2007, which is mainly due to its raw material export-driven economy and huge trade surplus. According to Brazilian Association of Real Estate and Savings Institutions (Abicep), Brazilian mortgage reforms in 2005 are paying dividends today in the solidity and growth of the country's property market. The government has introduced a set of reforms aimed at increasing liquidity in the debt capital markets.

The reforms are aimed at the country's long-term economic growth as well as increasing its gross domestic product. The clear objective of the government is to broaden access of housing to the middle and lower middle class by promoting private sector participation in mortgage lending, encouraging institutions that supports secondary mortgage market and reforming public agencies involved in mortgage lending. The president also announced the "growth-acceleration package." which includes housing and infrastructure investment of US$236 billion.

With Brazil has become one of the top market destinations for overseas property investment, the increase of more sturdy domestic demand is also stimulating property prices. Consequently, with interest rates likely to decline even further, Brazil's "competitive currency" and the transformation of the mortgage process, Brazil's housing market seems set for a vibrant future.

Labels: Economy, Mortgage, Property-prices

The news of booming business could be of interest to overseas investors considering making an investment into Brazilian property markets and those in Santa Catarina in particular, according to reports.

The sales of industry in the state have gone up by more than ten per cent in the last 12 months, which gives the hint of the booming economy of the state. The federation of industrial operators in the state has revealed that the scale of the use of pre-installed manufacturing equipments gone up by 83.3 per cent during the year prior to the end of June. According to Agencia CNI reports, in other South American countries businesses have seen some of their costs increase as a result of the global economic turmoil; but that doesn't seem to affect Brazil as demand for Brazilian property continues to grow.

Santa Catarina economy continues to flourish with its tourist trade growing at an incredible rate. The region's reputation for eco-tourism and a high standard of living makes this sunshine state as a 'must visit' destination. As a result of Santa Catarina's rising popularity, insightful investors are making in-roads into Santa Catarina's property market in areas such as Joinville and the capital city, Florianopolis.

This comes after the news that the Brazilian Association of Real Estate and Savings Institutions' claims that the market has recorded positive growth every year since 2001.

Labels: Economy, Market-Trends, Santa-Catarina

Overseas investors considering buying property in Brazil could be interested to hear that foreign investment in Brazil has continued to soar, according to reports.

ANBA has reported that foreign direct investment (FDI) for the first seven months of 2008 has reached $19.94 billion and the amount of FDI in Brazil totaled $3.24 billion in July alone, showing a considerable growth per cent from the same time last year. The expectation for the entry of foreign direct investment this year is expected to $35 billion and FDI in 2007 was twice that of 2006. According to a report released by the Central Bank of Brazil, the services sector had received the largest volume of funds which suggests that tourism in Brazil is booming.

Altamir Lopes, the head of the economic department at the Central Bank said that Brazilian property sector is in a healthy state and one of the key contributors of the rising FDI. Meanwhile, the central bank's predicts Brazil's economy will prosper further as it increased its projected economic growth from 4.66 per cent to 4.69 per cent. This suggests that the country's booming economy is more competitive and the financial buoyancy will continue in the future.

The FedEx economist Kellie Maske tipped Brazil as one of the "most dynamic" economies for growth potential and despite the "huge economic growth" currently underway in the nation property prices there still remain low.

This comes after the news that Standard & Poor ratings have placed the country in a group that presents low risk to investors.

Labels: Economy, Market-Trends, Property-prices

Overseas investors considering property for sale in Brazil could be interested to hear the nation is being tipped again as the right place for investments.

Luiz Inácio Lula da Silva said that the newly acquired investment grading would act as an enticement for foreign investment and those who are planning to buy property for sale in Brazil. The grading will unleash additional flows to the country, reports Mercopress.

The rating reflects a spectacular development in the country's private and public sector balance sheet that has made Brazil increasingly resilient to global credit crunch and improved the credibility of its macroeconomic policy framework. Property experts consider Brazil has the freest and most investor-orientated regulations in the world that makes it a good location for overseas property investors to consider.

Bloomberg has reported that the Brazil's export diversity meant it is a dependable place to invest making it less vulnerable than other rising markets. The Brazilian Society of Transnational Corporations and Economic Globalization (Sobeet) has said that the reclassification should afford further encouragement to the entry of foreign investment. Luis Afonso Lima, the president of Sobeet has commented that in certain countries the FDI rose enormously after getting the 'investment grade'

This comes after the news that recently the Wall Street Journal described the Latin American country as one of the world's most investor-friendly nations.

Labels: Economy, Investment-property

Brazil is increasingly attracting the attention of foreign investors as a new research has found the nation's economic growth has increased which also increased the number of rich citizens, it has been reported.

According to Brazzil Magazine, the decreasing dollar and the rich Brazilian residents who are embarking on spending sprees overseas gives the hint at the economic buoyancy among the Brazilian residents.

Agencia Brasil has-cited the Institute of Applied Economic Research (IPEA) reports which revealed that the growth of Brazilian economy has improved the income of all Brazilians. The study's results are focused on the period from 1992 to 2008. This growth in wealth could be good for investors who have property investments in Brazil.

Economists are predicting Brazil is about to realize its potential as a world economic player and it remained resilient to the economic downturn being experienced by European countries and the US. According to Merrill Lynch and Capgemini's latest wealth report, the number of Brazilians worth over $1 million has increased by 19.1 per cent to 143,000. The growth of Brazilian foreign trade and solid economic indicators are the sauces that have been bringing water to the mouths of overseas property investors.

This comes after the news that The New York Times has recently reported that Brazilian's are creating new class structures, with the realm of the super rich hitting Brazil.

Labels: Economy, Latest-News

Officials in Brazil have revealed that the country's economy is growing at an increased rate. Overseas property investors may be interested to learn that inflation is expected to settle at 6.5 per cent at the end of the year.

Brazil's dynamics are strong and that the growth rate remained steady despite other nations struggling to cope with the global credit crunch. The increasing spending power of consumers is a good reason to invest in both residential and commercial property. The planning and budget minister Paulo Bernardo stated that Brazil is better placed to reach this level of inflation than many other countries, Bloomberg reports.

Brazil's current account deficit is also expected to improve due to growing foreign investment in the country. According to the country's central bank, the FDI is set to top $35 billion (£17.7 billion) in 2008. The Brazilian government reforms and increasingly strong economy are good news for those considering purchasing property in Brazil.

Market analysts had revised their estimate for GDP growth this year as figures for the first quarter of 2008 are also above the amount many economists were expecting. The Brazilian president Lula da Silva has reportedly said the country's economy is demonstrating "strength and sustainability". Brazil’s vibrant economy is likely to be a factor that could attract overseas property buyers to the country, particularly as it is a highly popular holiday destination.

Labels: Economy, Investment-property

People considering buying property in Brazil could be interested to hear that foreign direct investment (FDI) in Brazil has been increased, the country's bank has revealed.

Nearly $152 billion (£76 billion) is invested in Brazil by the US and the UK in 2006.US top the table in foreign investment in Brazil, accounting for 47.8 per cent with the UK coming in second at 22.1 per cent. A study by the Brazilian Central Bank found that $34.616 billion (£18 billion) was invested in 2007 while the total FDI for the whole of 2006 was $18.782 billion. The report stated the services sector had received greater volume of funds which suggests that tourism in Brazil is booming. Brazzil mag has reported that Analysts are predicting that Brazil will receive foreign investment of $33 billion (£17 billion) this year.

Altemir Lopes, Head of the central bank's economic department told Bloomberg that the huge inflows exude confidence on the economic fundamentals of Brazil. Meanwhile the central bank's predicts Brazil's economy will boom further as it improved its projected economic growth from 4.66 per cent to 4.69 per cent recently. Overseas property investors looking at property for sale in Brazil could be interested to look at the Latin American country's strong economic indicators.

The IMF's World Economic Outlook Housing and the Business Cycle 2008 report revealed the massive housing growth last year in Brazil and it predicts a rise of 4.4per cent this year.

Labels: Economy, Overseas-property, Tourism

Brazilian property could be set to boom after the country is expecting a booming harvest this year, official statistics suggest.

Mercopress cited Brazilian Geography and Statistics Institute (IBGE) June month reports have revealed that the 2008 yield is expected to be almost eight per cent higher than that of 2007. As many countries are experiencing the effects of the global food crisis, Brazil appears to be self-sufficient which means prices are unlikely to soar and people will have more money for rent.

IBGE has estimated a record harvest of cereals, vegetables and oilseeds in the region of 143.6 million metric tones. Antonio Sarkis, President of The Arab Brazilian Chamber of Commerce has stated that Brazil has the natural talent to become one of the world leaders in agricultural sector, which could prove promising for potential buyers of Brazilian property.

According to the Financial Times, the Brazilian government plans to increase credit available for agricultural use to the equivalent of around £24.4 billion which is a 12 per cent rise and the interest rates for loans will remain at a steady 6.75 per cent to boost the sector. Meanwhile, Global property service provider Savills has highlighted the land in Brazil is among the cheapest productive property available in the world.

Property writer Judith Rehak said in The New York Times that Brazil is enjoying economic buoyancy which was the reason for a boom in property in Brazil.

Labels: Economy, Latest-News, Market-Trends

The Brazil-Arab News Agency has cited the official data from the Brazilian Central Bank which revealed that till November 2007, foreign visitors spent £2.3 billion in the country. This is an all-rime record and it is 3.89% increase when compared to the same period in the previous year.

According to Embratur, the country's tourism institute has said that the tourist market has grown by 15.22 per cent in the last year.

The overall increase in visitor numbers was found to have had a positive impact on tourism revenue. This could potentially boost its appeal among foreign property buyers, predominantly those who want to invest in rental accommodation aimed at tourists.

Brazilian government is actively trying to attract overseas investors through various means, such as campaigns to promote tourism and investing in infrastructure improvements. Brazilian tourist authorities launched a $6 million promotional campaign in 2007 in various media, including print publications and the internet.

Foreign Property Buyer website has recently stated that Brazil tourist market is on the rise and the increasing house prices make it ripe for investment. The website has suggested that promising holiday resorts would be particularly good options for investment in rental accommodation.

Furthermore, football World Cup in 2014 which is hosted by Brazil is likely to raise the profile of the country, potentially resulting in numerous economic benefits.

Labels: Economy, Tourism

The rate of economic growth in Brazil is getting higher and this could help to enhance the appeal of the country among those who are planning to buy property for sale in Brazil.

Last year Brazil has become the first Latin American country to have reached the value of $1 trillion (£502 billion) in the stock market. Brazil is now in the elite grouping of 15 countries with trillion-dollar stock markets.


The property market was recently recommended to potential buyers by independent analysts Amberlamb. It praised Brazil for offering "fantastic fiscal fundamentals" to overseas property buyers. Soaring local interest rates and bond yields are drawing investors to the Brazilian market. Brazil enjoys economic growth despite the downturn in the global marketplace. This fact may also be of interest to those who are interested in property for sale in Brazil.

Fabio Spinola, a fund manager with Quest Investmentos, told the Bloomberg news agency that Brazil provides strong growth opportunities. Asset manager Ian Cao of Rio-based Icatu Hartford predicted that a strengthening to 1.60 real (Brazilian currency) per dollar could happen soon due to the strong economic climate in Brazil.

The booming economy is driving property prices upwards and offers property buyers the chance for strong returns on their investment. Recently Mirror highlighted Brazil as a good place to invest, mainly due to its excellent climate, booming economy and unbelievably cheap property prices.

Labels: Economy, Overseas-property

Brazil is predicted to be the next major investment property hotspot and it is one of the top places for British property investors. Brazil breaks into top 10 for the first time of Currencies Direct's monthly Global Emerging Markets Index, charting at number nine. That means Brazil is the ninth most popular investment location for Brits buying homes abroad, according to Currencies Direct.

Currencies Direct noted that Brazil is the richest Latin American country and has well-developed mining, agricultural manufacturing and service industries, a large labour pool. According to PropertyShowrooms.com, Brazil is emerging quickly as property investment hotspot for European property entrepreneurs’ and annual price increase by as much as 20 per cent. The property market and infrastructure are developing at fast pace and this is the time to consider a purchase.

However, Mark O’Sullivan, head of trading at Currencies Direct, said property investment in Brazil come with many positives and negatives that investors should ensure the facts before making an investment.

Carlos Novis Guimaraes, chairman of the board at property developer Invest Tur has said in an interview with market watch that purchasers could find property for sale in many different environments. Harry Lewis, a director of Savills, predicted that Brazil would attract further interest from overseas property buyers during the next few months. So the investment in Brazil housing market would be highly lucrative for property investors.

This comes after the reports from The Latin Business Chronicle that Brazil’s real estate has shown positive growth over the last few years, buoyed by a strong economy.

Labels: Economy, Market-Trends

IN2 property investment, specialists in overseas property investments has said that
With the property market in Spain facing an uncertain future, Brazil is emerging as the next big thing on the world's property investment market. Brazil has long been a favourite travel destination and a new breed of experienced and adventurous investors are increasingly looking to make their trip more permanent and acquire property in the country. Tourist trade reached an amazing £5 billion in 2007 which is 14.76% more than that in 2006.

IN2 property investments are now singling out Brazil as the next big property hotspot in the South American region. Brazil offers high rental yields of 4-6% and house price saw an increase of 20% in some areas last year. A study carried out on the overseas property market by Datamonitor, for Overseas Property Professional magazine, finds younger buyers of UK are increasingly turning to newer, emerging markets like Brazil. Brazilian Properties cost only 70% of those in similar European resorts.

Goldman Sachs economics report in 2001 predicted that Brazil will become one of the most dominant countries in the future and the International Monetary Fund expects Brazil economy to grow by 4.4 per cent in 2008 and so the property investment in Brazil is spiraling upwards. Real estate specialist The Overseas Property Agency reckons that there are many good reasons to buy in Brazil like the lowering interest rates and controlled inflation rate.

Then again, economic growth is not the only one factor influencing property investment overseas property investors are attracted by the burgeoning tourism, valued second-home market, spectacular coastline, magnificent natural beauty, year round sun shine and temperate weather.

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The new Regulations which were introduced in 2005 have had a real impact on real estate market in Brazil. The real estate market became more democratized and more realistic for low-income groups to get onto the property ladder.

According to Abecip (the Brazilian Association of Real Estate and Savings Institutions), The loan activity in the sector has soared and the number of real estate loans has increased from 53,787 in 2004 to 195,900 in 2007. Jose Carlos Oliveira, professor of economics at the University of Brasilia, told the Latin Business Chronicle that the changes revolved around real estate guarantees. The government permitted banks to possess the property until the borrower had repaid their loan completely and the buyer becomes the owner only after he has paid off the loans. This results in the person who provides the funds to have a further impetus because he can pick up the property in case of non-payment.

The regulations of Brazilian central bank according to conditions specified by the SFH (the Housing Financing System), 65% of all the government’s savings had to be given for housing credits. The remaining credits should be offered at present market rates and used for funding residential real estate.

The government anticipates that the regulations will cheer up the investors who are looking for property for sale in Brazil.

Labels: Economy, Market-Trends

Brazil is the world's tenth largest economy in GDP terms and its economy has expanded 5.4% last year. This expansion in economy is credited to the growing personal wealth and greater demand for property.

Officials added that Brazil also saw increase in consumer spending power, reduction in poverty rates and business development in 2007. The rate of growth was also found to increase substantially. When it comes to economic growth, Brazil has grown since 2000 at an annual average rate of 3% and in 2006 it was 3.8 percent which means that economy growth has picked up the pace.

The favourable economic growth suggests that investors could possibly get high returns. The Brazilian government initiative to improve the country’s economy has encouraged foreign investors to pour capital into the country. The government’s structural reform program and efforts to build a more welcoming climate for investment, both domestic and foreign is reaping the rewards.

Brazil was recently highlighted by the Foreign Property Website as buying property in Brazil is very lucrative. With the economic situation in Brazil getting healthier, this is the right time to invest as property prices rising by about 20% per annum and looks set to go up even further.

Labels: Economy

Foreign investors have been showing considerable interest on the Brazilian property market. For decades now, the cities and regions, that immediately surround Rio and Sao Paulo in the south, have been thronged by tourists, and the north is beginning to open up as well. With more investments and better infrastructure in Natal and surrounding areas, the confidence in the northern real estate markets of the country is growing on par with that of south.

The Brazilian government has been putting in a lot of effort to draw investors and tourists attraction, to its balmy South American shores. Direct flights have been offered from Europe, and with the fourth largest airport expected to be ready by 2010 in San Gonzalvo, Brazil is likely to draw lot of attention.

Apart from the said factors, the stable economic conditions, booming tourism industry and beautiful climate in Brazil, strongly support the property market in Brazil, drawing in huge investments.

Strong Political background in Brazil boosts investor confidence
A democratically elected progressive government body is a strong point for Brazil, when it comes to encouraging direct foreign investments and economic policies. Brazil has the international recognition of a stable force in South America, and is dedicated towards improving the quality of life of its residents. The Brazilian Government is the driving force behind the attractiveness of this booming property sector, which in turn, leaves investors with immense confidence in the property sector of the nation, so much that, even global names such as the GE Real Estate and Donald Trump have entered into long term property development and investment commitment in Brazil.

Booming Economy of Brazil appears attractive to real estate investors
According to British Foreign and Commonwealth Office, the Brazilian economy is the tenth largest in the world, with 'Real' as its currency. The GDP of Brazil is R$ 2322 billion last year. The annual growth rate was 3.72% in 2006, with the rate of inflation averaging at 3.1% roughly, making the nation more economically stable and developing in a sustainable way.

The Economy of Brazil is strongly driven by industries such as mining, agriculture, petrochemicals, wood products, electronics, tourism and its trading partners on the worldwide front include major players such as the UK, America, France, China, Japan, Germany and Argentina. The strong and increasing economy and overall accepted economic stability in the global market, further ensures that the market remains an attractive option to property investors seeking long term commitment.

Brazil's low cost of living draws huge demand from investors, expatriates, and tourists
Brazilian cost of living is comparatively 20 percent lower than that of UK, which implies that British expatriates and tourists would find Brazil as a better deal for their pounds purchase, than their own motherland. This seems more appealing to investors who desire to buy in markets where people not only like to visit, but can also afford a vacation, or even prefer to live as a retiree.

Brazil's strong economic programmes improve local affordability and drive employment potential for Brazilian property
With recent statistics from the CIA World Factbook, Brazilian unemployment rate is roughly about 9%. At present, with the targeted government action programmes, these numbers are considerably low. The government has been further encouraging to boost foreign investment and raise tourism numbers. It is expected to create more than a million new jobs in Brazil, decreasing unemployment further.

This emphasis by the government to encourage investment, increase tourism and lower unemployment has boosted investor confidence in the Brazilian market, and its affluence and employment, so that there is low but steady increase in demand for property among the local population. This is a positive sign for long term health of the market, and it is a good fundamental that an investor needs to bear in mind.

Rapid increase in tourism sector directly and positively affects property economy
For the property investors who seek profit in the form of rental income from tourism, Brazilian market would be the right choice, with good potential for investment returns. With several government programmes ear-marked to promote tourism, improve infrastructure, and develop accessibility and attract investment to upgrade amenities and facilities, the country is expected to witness 65 million tourists on an annual basis, as per estimates. Further, the tourism is expected to increase by 4% each year for the next decade or so, which is no doubt, exciting news, for investors looking to let properties to tourists.

No restrictions on Foreign Ownership of Property
The Brazilian government welcomes foreign buyers. Land and property ownership in Brazil is free of restrictions and foreign investors and overseas buyers are treated in the same manner as the Brazilian citizens, with all properties sold on freehold basis. To add to this, other attractive options such as the 15% capital gain tax being waived-off in the case of non-residents, profits in re-invested property and 0% purchase tax on short-term investments, make Brazil the right choice for investors who do not wish to see their properties being eroded by government authorities and bad taxation system.

Ideal landscape in Brazil makes it favorable destination for tourism-driven investments
Brazil's natural landscape offers all kinds of terrain and sight possible, and the buyers will find savannahs, plains, mountains, hills, rainforests, highlands and breathtaking waterfalls highly appealing. Even the geography in Brazil, by itself, will lend itself to every form of tourism from golf based to eco-tourism, and the beaches which stretch 8000 kms or more add to investor potential.

Brazil represents exceptional real estate based opportunity and an exciting, appealing, nation for buyers
People examining the investment property in Brazil, will find that the nation is legendary for its carnivals, range of outdoor activities, and beach life. It is usually found that places with an interesting tourism appeal, will also have an opportunity for real estate. For instance, the Rio de Janeiro, is well-known throughout the world for its annual carnival, attracting plenty of tourists. Hence, it is also increasingly growing as a destination to target property investment approach.

High accessibility makes Brazil, a more attractive option for long-term property investors
With flights that are less than eight hours from the European mainland and the UK, getting to Brazil is no longer difficult, than making it through a day at work, and generally, it is more enjoyable. Accessibility, being the key feature, an investor knows to consider his long term prospects in a market, and Brazil has all positive notes in this respect, generating interest and confidence in property-based investments.

Brazil's weather pattern suites one and all, generating more investor potential
Vast geographical expansion gives Brazil, five distinct climate regions, which virtually means, anyone can choose a weather pattern that suites them, be it, a holiday maker, a business professional, or a retiree. View Current Brazil Weather

Hence, on the whole, the investment property that Brazil has to offer is getting more attractive, with the Brazilian government reaching out to foreign investors. With the rapid increase in tourism figures, the nation is becoming an emerging star for both international property investors and expatriates.

Labels: Economy, Investment-property, Market-Trends

Independent overseas property portal Amberlamb stated that it was generally accepted that if there is any problem in economy of America means it would have repercussions in the economies of rest of the world but Brazil is showing solidity even in the face of American financial crisis.

Brazil has advanced on the path to economic stability in the last decade. Given the demand for Brazilian commodities and high levels of foreign investment, Brazil has made lasting improvements in the economy. Thanks to Brazil's financial solvency and is no longer dependent on the United States or any other country.

There are certain sectors of the economy that have consistently shown double-digit growth in recent years. Brazil has taken bold steps to diversify its own economy and encouraged overseas property investors to invest in Brazil.

Amberlamb reported that Brazil offers excellent investment opportunities and soaring land prices were pushing up the value of property in many areas.

Labels: Economy

According to sources, the Southern Brazil has enjoyed a phase of growing financial stability.
The Brazilian Central Bank (BCB) has announced that the region benefits from low inflation, growing foreign trade and more jobs.

According to reports by anba.com, the figures are based on performances until the end of third quarter, which suggests that southern regions are ahead of others in the country.

Economic Policy Director, Mario Mesquita, has said that the southern region has been witnessing rapid expansion, with foreign trade growing intensely in the region and also in Parana.

An additional 133,300 jobs have come up in the south in a span of three months, until November 2007. The retail trade on the other hand, has reported an eight percent growth over an eight-month period last year.

Parana, which borders Paraguay and Argentina, includes more than ten million population, and is still a major producer of coffee.

Labels: Economy

Apart from the advantage of attracting tourists with its sun and sand, Brazil also draws to tourists to its side with its strong government policy. Brazil, being one of the top five Latin American Properties, is worth investing, as it offers plenty of opportunity for increase in growth and property value. There are many advantages that Brazil offers, to encourage such an investment.

The government in Brazil is strongly encouraging foreign investors to develop most of the underdeveloped and highly desired locations such as the beach resorts in Brazil. Also, with the housing surplus in Brazil, indicating a flourishing economy, property investments will have a strong growth forecast.

Investors are of the opinion that Brazilian real estate market has plenty to offer for all kinds of investors. There is a sure possibility of growth for the next five to seven years.

Over the past several years, Brazilian citizens have seen a transformation taking place in terms of economy and credit markets. More number of people are in a position to purchase affordable housing. The properties are very valuable and desirable to the investors with several outstanding developments. Apart from this, the housing market has also received a boost, with more number of people being qualified for credit.

According to Economists, Brazil is a safe investment option, when it comes to property, heading forward into a global economy slowdown. International companies are investing millions of dollars in most areas, to help fund the growth in Brazil.

Labels: Economy, Market-Trends