Interest rates are kept at record low for Brazilian property owners, Brazilian monetary policymakers held the country's benchmark interest rate at 8.75% which have been maintained for the third successive bank meeting.

The interest-rate decision arrived ahead of report on third-quarter gross domestic product. Economists polled by Dow Jones Newswires expect expansion of 1.9% from the second quarter, and a decline of 0.3% from the third quarter of 2008. Latin America's largest economy continued to bounce back from the shrinking GDP figures recorded in the fourth quarter 2008 and first quarter this year. The Growth has been fueled by an aggressive monetary easing cycle, hikes to government spending and tax cuts on consumer goods.

The central bank slashed a cumulative 500 basis points off the benchmark interest rate this year in an effort to help jump start the then-flagging economy. The central bank's Copom rate-setting panel once again maintained the Selic at 8.75%. The panel, however, altered its statement that hinted at sooner-than-expected rate increases.

"The country is still on a growth trajectory, but it's a more moderate growth, and also more balanced," said Newton Rosa, an economist at the Sao Paulo-based Sulamerica Investimento fund. "But this has a positive side in that it shouldn't put pressure on the central bank to raise interest rates in the short term," he added.

Meanwhile, Brazil's government said it will lend an additional $80 billion reais ($45.3 billion) to the national development bank over the next two years to boost investment and pushing ahead with spending on infrastructure and new Brazilian property.The measures have increased consumers' access to credit and increased confidence. The government will also extend 369 million reais ($208 million) worth of tax breaks on capital goods items until June 2010 and authorize private banks to raise cash via the issuance of debentures, Brazil's Finance Minister Guido Mantega added.

According to Brazil's census bureau, Family consumption rose 2.0% quarter-on-quarter, while government consumption also increased 0.5% in the third quarter. They reported an uptick in November consumer prices. In More good news for investors, the annual inflation rate currently runs at 4.22%, below the government's target of 4.5. Economists expect inflation to remain below the target, not only in 2009 but also 2010.

Labels: Latest-News

With the Olympics set to take place in 2016 and the World Cup even sooner in 2014, Brazil is getting a lot of positive attention at the minute. And it seems that there are plenty of reasons for the country t hot property in 2010, according to an industry expert.

Nick Marr, chief executive officer of HomesGoFast.com, said that the construction and infrastructure upgrade works in the country ahead of the 2016 Olympic Games will help to boost real estate sales. The upcoming football World Cup in 2014 will also see a boom in infrastructure investment, with 12 host cities seeing new sporting facilities being upgraded or constructed. The South American country has been tipped ahead of France and the US as the place to invest next year.

Mr. Marr added that Brazil would be the number one place for investors and it is the place generating most interest. The great thing about Brazil is that investors have good exit opportunities with local and overseas buyers to sell to when the time comes. He also advised that people should look at properties in Natal, Bahia, Rio Grande do Norte and Ceara as the most favourable investment areas.

According to The Organization for Economic and Development Cooperation (OEDC), Brazilian property owners will experience robust growth of the country's economy in 2010 and 2011. The Organization has predicted that the country will see growth of around 4.5 per cent, performing better than other nations.

A report from the organization suggested that next year "the government could begin to roll back budget incentives as the economy consolidates". The predictions are an improvement on earlier ones, which estimated 0.8 per cent growth in 2009 and four per cent in 2010.

Labels: Latest-News, Market-Trends

Brazilians are the most optimistic in the world when it comes to their country's prospects of economic recovery, which will benefit property owners in the country, according to a finance president.

According to News agency ANBA, Salim Taufic Schahin, Arab Brazilian Chamber of Commerce president, speaking at a conference in Turkey said that there is good feeling in the country thanks to investment opportunities which are being presented following recent sporting hosting decisions including winning bids to host the football World Cup in 2014 and the Olympics in 2016.

The president said that the good perception of the country, which is set to boost Brazilian real estate owners as the country continues to pull through the recession, economic analysts have expanded their projections for the GDP of the country, rising from 4.2 per cent to 4.5 per cent. Earlier this estimate stood at just four per cent.

He commented: "Much investment should come and we will have an important flow of capitals and lines of credit opened."

In what could be good news for Brazilian property investors, a survey undertaken by the WIN Network found that Brazilians had the most positive outlook for the next three months, believing their financial situations will improve in that time and the respondents from the South American country also trusted their government to steer the country through the recession, according to the Guardian.

Labels: Buying-property, Latest-News

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

Now may be the best time to buy Brazilian property as the effects of the global economic recession have created bargains in the market and the country has been named as one of the top five areas for investment, according to an expert.

According to Real estate portal Propertyabroad.com, Rio de Janeiro and Natal in the north-east are the two of the best cities in the world for buying a home. The website refers to the predictions that the South American nation is set to become the fifth largest economy in the world in the next ten years, with Brazil real estate values set to follow suit.

Properties in Rio are still available at a fraction of the cost of comparable properties in the world's major cities like Paris, Rome and London. The portal added that the cheapest apartment in London is over £150,000 whereas investors can buy a 3 bedroom house in Natal for £120,000.

Meanwhile, Les Calvert, director of Property Abroad said that the economic crisis has led to bargain Brazil real estate coming onto the market for savvy investors, who are also likely to see values double over the next five years.

Thomas Shapiro, president of GoldenTree InSite Partners, said in Global Real Estate Summit that a recent 104-unit development in Sao Paulo sold out in four hours, showing demand for Brazilian property is picking up. The economy looks better than expected for the coming year, Mr. Shapiro stated, according to Reuters reports.

His views back up comments from Steve Worboys, director of Experience International, added that an increasing number of investors are realizing the potential of property in Brazil.

Labels: Investment-property, Latest-News

China Construction Bank (CCB), the world's second-biggest bank by market value, revealed that it intends to set up branch offices in fellow BRIC nations Brazil, India and Russia, according to reports.

Guo Shuqing, chairman of the China Construction Bank said that CCB signed a memorandum of understanding that is expected to lead to an agreement to provide US conglomerate General Electric Co with banking services in China and for cross-border financing.

After saying he "certainly" wanted to open branches in Brazil, Mr. Guo said this is due to a reluctance to develop into other nations. He commented: 'I think that in the developed countries, the financial sector is overdeveloped, there is over banking'. According to Reuter's reports, the company intends to add ten more branches in the next ten years, which may boost the availability of banking services to property investors in Brazil.

Meanwhile, Michael Sutton, reporting for Write about Property stated that Brazil grows into one of the world's largest economies; property will grow in value until prices are similar to what they are in the developed economies. He added that one-bedroom flat in Rio de Janeiro, which would currently cost around £80,000and the same property would be priced at approximately £150,000 in London at the moment, which suggests the potential for 100 per cent growth in the next five years.

Labels: Latest-News, Rio-de-Janeiro

Brazilian property builder Cyrela has reported increase in net operating revenue for the first quarter of the year.

Cyrela Brazil Realty is Brazil's largest developer of residential properties. It currently operates in 17 states and 55 cities in Brazil, and also in Argentina. According to Dow Jones Newswires, The Company has reported net profit of 100 million reais (£31.5 million) for the first quarter of the year, up from 68.5 million reais during the same period in 2008. Net revenue stood at 671 million reais for the January to March period, up from 550 million reais in the first quarter of 2008.

Elie Horn, chairman of Cyrela's board of directors stated that in residential sector, the company is growing at 80% to 90% a year for the past three or four years. In 2009, the growth was in low-income, middle-income and high-income. It was in the all sectors of Brazil. Of course, low-income is the category that is supposed to grow more because more people willing to buy such apartments.

Meanwhile, another Brazilian property builder Gafisa has reported a 59 per cent increase in net operating revenue for the first quarter of the year with the income of 541.9 million reais (£171 million), up from 340 million reais for the same period in 2008. The company has managed to "successfully ramp up" its sales efforts, generating over 558 million reais worth of income. The rise in returns has been attributed to an increase in sales of Brazil real estate during the first three months of the year.

Labels: 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

The Brazilian Northeast has been attracting the attention of foreign companies and Jumeirah Group is the latest in that list which has a continuous strategy to be the biggest luxury hotel chain in the world, this time turning its attention to Brazil's northeast.

James Erlacher, the Senior Vice-President of Development for the Americas will participate in Nordeste Investe 2009 in Maceio, while estimating the company's possibilities of settling in Northeast Brazil. Jumeirah, having their headquarters in Dubai, wants to spread to American soil - and for them, Brazil spikes as a favored area for various reasons: the Brazilian economic and political stability, the progressive middle-class consumption and the 2014 World Cup.

Mr. Erlacher commented: "Brazil has a government that understands the challenges that the global economy faces." "There are many development opportunities in Brazil, particularly in the north-east. Brazil represents a very strategic market for us," he said.

A variety of opportunities have surfaced to promote the tourist-real estate developments in Northeast Brazil and it is bringing developers from an international level. Most potential buyers head to the northeast of the country, where the Fernando de Noronha, Alagoas and the Marau peninsula have been named among the best destinations for beaches.

Property prices in Northeast Brazil have seen stratospheric growth, fuelled by an emerging Brazilian middle class and an international campaign to attract investors to be staged across the whole country. Felipe Cavalcante de Melo Lima, president of the Association for the Development of Tourism and Real Estate in the Brazilian Northeast says "Some locations have seen capital appreciation of more than 1,000% in five years," he predicts a more modest 12% increase for this year.

In related news, David Gordon, commercial director of Qualta Resorts, comments "Northeast Brazil is like southern Spain 10 or 20 years ago and it is a fabulous alternative to Spain and is more affordable than the Caribbean. People are fed up with the classic Costa del Sol pitch, which has become one big ghetto of British people."

Labels: Investment-property, Latest-News

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

Brazilian property investors with an eco-friendly conscience could be interested to learn that the World Bank has approved a $1.3 billion (£910 million) loan to Brazil to support the country's environmental management and climate change efforts.

Brazil will collect the First Programmatic Development Policy Loan for Sustainable Environmental Management to fund its forest, water management and renewable energy schemes, as well as integrating its climate change agenda. The program is to help decrease the flawed farming and logging practices as well as illegal deforestation by giving local communities privileged treatment regarding forest concessions. The program will also try to perk up Brazil's water and sanitation services, which is the main reason of hospitalization in the country with diseases such as dysentery. The $800 million will be disbursed in the first phase and a second tranche of $500 million is expected to be paid out in the fourth quarter of 2009 upon fulfillment of the projects goals.

Makhtar Diop, the World Bank's county director for Brazil has said that the loan "will prop up Brazil's environmental management and will integrate the sustainability concerns in the development agenda of key sectors such as forest management, water and renewable energy."

Guido Mantega, minister of finance commented: "The Brazilian government has been working strongly towards the development and implementation of public policies that address sustainable development so that economic growth occurs without loss to our rich biodiversity."

In related news, University of Sao Paulo (USP), the nation's most renowned university has launched its first environmentally sustainable building. The Centre of Studies on Climate and Sustainable Environments in the university is a zero-energy consumption building, according to Brazzil Magazine reports.

Labels: Environment-friendly, 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

The Brazilian government is encouraging overseas investors and making efforts to render the process of buying property in the country more straightforward, according to an expert.

Paul Collins, property editor at BuyAssociation, said that entering the property market in Brazil has become easier for overseas buyers on account of the government's enduring attempt to attract overseas investment. He added that Brazilian authorities are aiming to enhance the market for "residential tourism", whereby people visit the country and then purchase a home.

Mr. Collins commented: "As more people invest in Brazil it will become easier and easier because the processes will become more and more streamlined."

The central bank of Brazil also shows that tourist spending in Brazil for the first ten months of 2008 is 19.1 per cent higher than it was at the same time in 2007. Jeanine Pires, the president of the Brazilian Tourist Institute said that Brazil had an increase of 10 per cent in revenues from international tourism in 2008."

According to Property Abroad analyst Liam Bailey said that the Brazil offers investors the best deal and has remained strong despite the credit crunch. Current positive media exposure and huge overseas funding coupled with government's attempt to attract tourists will guarantee that property values in the country remain strong.

In related news, the Xinhua news agency reported that President Luiz Inacio Lula da Silva has committed to continue investing in the nation's infrastructure despite the ongoing financial crisis.

Labels: Latest-News, Property-law

Brazilian property investors could be interested to learn that the Latin American has approved Everest Reinsurance as a reinsurer in the country, it has been reported.

Property insurance has seen the most significant amount of growth in Brazil's insurance industry over the past 5 years. The interest of insurers has been driven by the market's size and growth potential. Superintendencia de Seguros Privados accepted the insurance company - a subsidiary of Everest Re Group - as an admitted property and casualty reinsurer.

A spokesperson from the firm said the approval allows it to further stabilize its position in this very important Latin American market and playing a role supporting infrastructure development and trade. The influx of foreign insurers is helping to change Brazilian insurers by more responsive towards customers, by communicating well, by harnessing technology such as data mining and relationship management tools.

Dilma Rousseff, minister-chief of the Civilian Household of the Presidency told the government intends to tackle the economic slowdown. She added that Growth Acceleration programme produces a high-level of public and private investment and creates a huge consumer demand.

Labels: Latest-News

Brazil has become a property investment hotspot as it has been included in an industry list of the top ten locations.

According to the research from overseas real estate firm Property Abroad's, which has calculated traffic and enquiry figures, Brazil is ahead of traditionally popular European areas such as Greece and Italy. Liam Bailey, chief market analyst for Property Abroad, commented factors such as the currency movements and the cost of investment are among the factors buyers consider.

Les Calvert, director of the firm, said: “The Brazilian property market has been growing in popularity over the course of the past few months, both in terms of properties being viewed and properties being enquired about."

Meanwhile, Brazil also featured in a list of the most popular locations put together by The Move Channel which placed the country in the top ten, above the likes of Germany and Turkey.

In other news which may interest those thinking of investing in Brazilian property, Journey Latin America is offering Brits the chance to travel to Brazil as part of a ten-day package for £750.

Labels: Latest-News, Market-Trends

TheMoveChannel.com has reported that those who are looking for property purchase has to obtain a good agent who will be able to help Brazilian property investors find the real estate that matches their requirements. The organization advised investors to be sure they understand the charges and liabilities involved in any negotiation so they are in a position where they are best protected.

According to the New York Times, Global real estate brokers Eychner Associates said that the legal aspects of property purchase in Brazil are handled by a notary and fees should range from between two and three per cent. Bob Eychner, president of the firm, has said that investors would also have to pay a three per cent transfer tax. He advised buyers to borrow from a Brazilian branch of an international bank, as the nation's mortgage industry is relatively robust despite the global credit crunch.

Dan Johnson, the managing director of TheMoveChannel.com, said that the mandatory requirement to buy property in Brazil is a CPF number (tax registration number), which can be applied for via the embassy.

Labels: Latest-News, Property-law

Foreign investors considering buying property in Brazil could be interested to hear the nation's level of social equality are in its highest level, it has been reported.

The Brazil Arab News Agency has cited the figures released by the Institute of Applied Economic Research (Ipea) which reveal that social inequality dropped by some seven per cent last year. The average annual rate from 2001 to 2006 was a 1.2 per cent fall in social inequality. Analysis by Ipea shows that in the past six years more than 13.8 million have improvement in their social class for the better. The drop coincides with the recent progress of the economy, which increased by 6.1 per cent in the second quarter of 2008.

According to the report from the Ministry of Labour and Employment, till August 2008 nearly 1,803,729 jobs were created, which is also a new record and one-third greater than that of the same time last year. Industry experts predict that the speedy increase in peoples' income and rise in social equality will lead to an extensive residential upgrading. This could be appealing news for the overseas investors considering property for sale in Brazil as it hints at economic buoyancy in Brazil.

Jose Paim de Andrade, of Brazilian real-estate investment firm Maxcap in his interview to The Economist has predicted that the current housing boom in Brazil will carry on "for next seven years".

Labels: Latest-News, Market-Trends

The vibrant city of Sao Paulo have a lot to offer for investors looking to buy property in Brazil beyond the traditional tourist areas, as it has launched the battle against "visual pollution", according to new reports.

The Brazilian city has banned all billboards, illuminated signage, neon signs and electronic panels as part of the new Clean City law. The Clean City law Passed in September 2006 by a margin of 45 votes to one aims to make Sao Paulo a more attractive place to day-trippers, residents and investors alike. The authorities call it as a visual pollution, plans to ban the outdoor advertising to transform the landscape and to offer its residents unimpeded views of their surroundings.

City planners and environmental advocates enthusiastically said that the new "clean city" law and brings Sao Paulo a welcome step closer to an imagined urban ideal. The law also applied to advertising banners trailed by airplanes. All other forms of advertising in public places, like distribution of fliers are also banned and the law also has regulated the dimensions of store signs. Roberto Tripoli, president of the City Council has stated that they are aiming for a complete change of culture.

Aboutsaopaulo.com has reported that the state of Sao Paulo accounts for just three per cent of the Brazilian landscape yet is home to 40 million people and also attracts the most foreign visitors. The Conjunctural Survey of Retail revealed that first quarter growth for retail trade reached 7.3 per cent in Sao Paulo. The major factors for the boom are said to be the increasing credit available and the higher income rates in the metropolitan region. A booming economy could be good news for the investors considering property purchase in Sao Paulo as it is seen to underline the region’s prosperity.

Labels: Latest-News, Sao Paulo

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

Overseas investors considering property 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 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: Latest-News, Market-Trends

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

US supermarket giant Wall-Mart has announced plans to expand its operations and invest 400 million reals (£101 million) in the north-east of Brazil.

Wall-Mart is just one of a number of international firms that are looking to expand in Brazil and take advantage of the country's growing economy and consumer spending power. The Pao de Acucar Group is the leader of Brazil's supermarkets and topped last year's ranking of stores by ABRAS(the Brazilian Association of Supermarkets), after earning more than £3.8 million. However, the Brazilian chain will face stiff competition from US supermarket giant Wal-Mart in the future.

Vicente Trius, chief executive of Wal-Mart Brazil has said that eight supermarkets will be built in Pernambuco, seven in Bahia; three in Rio Grande do Norte and one in Ceará. Wall-Mart aims to open 28 new stores and 19 pharmacies across the country with around 1 billion reais (£253 million).

Figures revealed that Brazil's supermarket spending power has increased over 4.2 per cent this year. The growing spending of the Brazilian consumers is expected to flow into the property market in the coming years increasing demand and property prices.

Independent analysts Amberlamb has said that economic growth and a burgeoning tourist industry have created a lucrative property market in Brazil and property prices are booming, which it claims has been brought on by a strengthening economy.

A recent report by Nubricks has highlighted Brazil's economic buoyancy and the Brazilian currency, the real increased by 16 per cent against the pound.

Labels: Latest-News, Market-Trends

The Union of the Civil Construction Industry (Sinduscon) has anticipated Brazil's construction sector's dramatic increase in activity and said that it should grow by a tenth this year.

Sinduscon has stated that the industry growth by nine per cent in 2007 will be beaten this year and suggests that these high levels of demand reflected in the Brazil's booming property market. ANBA has reported that Brazil’s vibrant economy and increasing purchasing powers as the main causes of the sector's performance.

Property experts believe that the growth in the housebuilding component is "noteworthy" and a healthy economic outlook is continuing to boost workloads within the construction industry. This improved buoyancy in housing market activity and prices are boosting housebuilders confidence. Eight million more homes are now required in Brazil and the publication added that nearly 15 per cent of Brazil's households are unfinished and most of them require regular maintenance work.

The sharp pace of growth is a mark of the confidence in the Brazil property market that companies are so eager to build, with the residential sector undoubtedly leading the way. High levels of demand and only limited supply may also increase the property prices and the country has seen capital growth of around 20 per cent in its property last year.

This comes after currency specialist HiFX has recently predicted Brazil to be a hotspot for property investors in 2008.

Labels: Latest-News

Nicholas Marr, spokesperson for property portal Homesgofast.com, said that foreign investment in the Brazilian property market is hotting up. Property experts suggested that house prices are increasing year-on-year in coastline areas, while those looking to invest inland could benefit from cheaper property prices.

Rhiannon Williamson, director of Amberlamb, has said that overseas investors are looking towards Brazil as the next residential property investment hotspot. She added that the country's fabulous climate, low living costs and emerging status as factors appealing to foreign investors.

The 134 per cent increase in tourist numbers taking place from 2002-05 demonstrates that tourism is booming and also the guaranteed year round rental potential. The Brazilian government is investing profoundly in improvements to the country's infrastructure. The infrastructure improvements across the country indirectly support investors by raising the appeal of certain locations.

In 2003, investment banking and securities firm Goldman Sachs chosen Brazil, along with India, Russia and china, as one of the four emerging countries at the fastest economic pace that would have supremacy in the world economy in the future.

This comes after the Mirror highlighted Brazil as a good option for foreign property, mainly due to its fabulous weather, thriving economy and affordable property prices.

Labels: Investment-property, Latest-News

Overseas investors have been advised that recent problems in the global economy could ultimately work in their favor as many developers are failing to meet their sales quotas. Property investors in the current economic climate could find themselves well-placed to negotiate a good price.

Morgan Stanley's head of emerging markets, Jonathan Garner explained the reason he is advising investors to make land and property sector investments in countries such as Brazil is that the credit crunch has not affected these emerging markets. He further added that the banks are in good shape and the households are not overextended. Property experts have said that Brazilian market's real estate laws are designed to support property purchasers and make them self-assured about the security of their investment.

Mr. Garner's claim is further supported by figures compiled by the Reuters, which showed that household debt to GDP ratio in Brazil is less than ten per cent whereas in UK it is above 100 percent. Brazil is effectively weathering the storm created by the downturn in the global economy.

NuWire Investor recently recommended North-east Brazil which said its growing tourist trade and strong economy makes it a good location for investors to consider.

Labels: Latest-News, Market-Trends

The National Aviation Agency has announced it will authorize airfare reductions of up to 80 per cent Brazil aviation industry figures reveal that demand for flights to Brazil is increasing at a significant rate.

The agency, which controls the nation's commercial flights policy, has announced that the initial reductions will start from the flights for any of South American region's other 12 countries and has plans to expand the policy to other continents in the near future.

The new policy is expected to make international air travel in Brazil more viable and it is set to enhance the country's tourism industry and increase the visitor's numbers, therefore enhancing its appeal as an overseas investment spot.

As a result, it is likely that many of the locations in Brazil will benefit from increased visitor numbers. This could be a positive development for owners of rental accommodations, as they could experience a surge in demand for tourist accommodation. Therefore, this may attract more overseas investors to consider purchasing property in Brazil to take advantage of the growing market.

Maraa del Mar Ayudarte, Air Europa's head of international sales has recently said that The UK market to Latin America is booming. Rhiannon Williamson, director of Amberlamb has said that Brazil is easily and affordably accessible from UK and mainland Europe and also it offers "outstanding" investment opportunities.

Labels: Latest-News, Tourism, Travel

Labels: Latest-News, Market-Trends

The Nordeste Invest seminar, a tourist investment and real estate event which is held in the northeastern Brazilian state of Pernambuco over 50 speakers from Brazil and from overseas took part in the event.

The purpose of Nordest Invest is to show the lifestyle attractions that the region has to offer, including its golf courses, beaches and good scenery and the investment opportunities in the region. The event is promoted by the Real Estate and Tourist Development Association of the Northeast (Adit Nordeste) in association with the Brazilian Export and Investment Promotion Agency (Apex-Brasil).

The previous edition of the event attracted US$ 187.8 million in foreign investment. The Brazilian economic prospects, the impact in tourism and in the real estate market, development of residential tourism in Brazil and investment outlook in infrastructure in the Northeast are discussed in the event.

Bloomberg has recently reported that Brazil has "robust earnings growth" and that is likely to be enjoyed by overseas investors. Property experts suggested that foreign investment in the Brazilian property market is 'hotting up'.

According to property website Homes Worldwide, Brazil has seen capital growth of around 20 per cent in its property. British buyers are looking towards Brazil as the next residential property investment hotspot as they are attracted by Brazil's excellent climate, lower living costs and its emerging economy.

Labels: Exhibition, Latest-News, Lifestyle

The real estate in Brazil is creating numerous opportunities for overseas property investors, according to experts.

Resort Group International has said developers who had been occupied in the Spanish market are now looking for Brazil with the objective of exploring the real estate sector there.

Brazil is recommended as an alternative to Spanish property because the property market in Brazil has not yet been tapped into and it qualifies as an emerging market. However, it offers excellent infrastructure and with abundant supply of natural resources. Brazil also offers highly desirable surroundings and good quality facilities at a relatively cheap price. The property market is boosted by fast-growing tourist infrastructure, whereas property prices have yet to shoot up, making it perfect for today's investors.

Accounts manager Lawrie Smith of Resort Group International has said that Brazil has the similar attributes to Spain and offers an incredible mixture of attractions as it has fabulous sandy beaches, an incredible climate and hospitable people. However, it offers comparatively cheap properties, which means investors could potentially grab a bargain. Besides, the growth in the market that is presently taking place would allow buyers to profit from healthy capital appreciation

Recently Foreign Property Buyer said Brazil is "worth a look" as Brazil has booming tourist market and demand for rental accommodation would be always on the rise.

Labels: Latest-News, Market-Trends

Morgan Stanley's Emerging Markets Index has now reported that the Brazil as the next residential property investment hotspot. Brazil has a rapidly growing economy and is becoming especially popular with overseas investors.

Brazil is one of the few energy-independent countries in the world; they have the largest supply of fresh water in the world and the recent the discovery of oil reserves gives the country added income opportunities. Brazil is blessed with abundant supply of natural resources. All these factors combined with good tourist trade and the fabulous climate makes Brazil as a good prospect for investment

The recent economic changes taking place in the Brazilian market, stable government and strengthening of their currency are creating huge ripples in the property market.

Obelisk believes that the commencement of new credit facilities for example personal loans and mortgage lending are pushing up house prices in both the domestic and commercial sectors.

The property and land prices are rising but still affordable and investors in rental properties could expect returns of about six to seven per cent a year.

James Gonzalez, Market Analyst at Obelisk has said that Brazil has become a highly appealing option for overseas property investors and the news of hosting football World Cup in 2014 is also driving up property prices in many places. Brazil could prove to be a wise investment choice for anyone looking for an overseas property purchase.

Labels: Investment-property, Latest-News

Labels: Latest-News, Market-Trends, Mortgage

Labels: Investment-property, Latest-News, Sao Paulo

Petrobras, Brazil's state-controlled oil company has discovered in the Santos Basin in the southeast of the country around eight billion barrels of light oil, which could catapult Brazil on the map as a major exporter of oil. The oil resource which was found in the Tupi field could represent 40 per cent of the total oil reserve in Brazil and affords a huge economic boost for Brazil. These oil and gas discoveries in the last 3 months off the coast of Rio de Janeiro will make Brazil break into the top ten list of oil producing nations.

Business Week has reported that the Tupi oil field is 155 miles off the coast of southern Brazil and is the biggest oil find since 2000. Rodrigo de Azeredo Santos, head of the Trade Promotion Programs Division of the Ministry of External Relations has said in an interview that Brazilian oil reserves, biofuels and availability of hydroelectric power generation are added guarantees that Brazilian property investment is safer due to the assurance that energy will be available to sustain the economic growth. The oil discoveries are so important for property investors in Brazil as similar oil boom in Dubai and Norway have regularly seen their property market post record price increases annually.

Brazil's property market is now in good shape for overseas investors. According to Jose C. Santiago, licensed and certified attorney of law in Brazil in his portal LawOfficeInBrazil.com has stated that the country is a buyer's market, with low prices because there are more homes for sale than there are buyers. The demand for property in Brazil is expected to increase by approximately 900,000 units each year.

Overseas investors looking for good property returns with relatively low-entry costs may consider investing in Brazil following the oil discovery, which may strengthen the country's economy and in turn raise property prices. Business week has reported that Brazil is a smart place to invest. It is a self-reliant country on the energy front, a position that has been further strengthened by the recent discovery of new oil fields.

Labels: Investment-property, Latest-News, Rio-de-Janeiro

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.

Labels: Economy, Latest-News

Despite general downturn in the property markets of developed countries, eco-property is back and strong. Announcing an eco-property investment in Brazil, does not come as a surprise.

The plan for building an eco-resort in Brazil, gained momentum last week, due to increased numbers of early-bird investors in the surrounding land. This heavy entry-level investment was least expected, which in turn, brought in plenty of momentum to the eco property effort. In the wake of this development, it has been reported that most other property developers in Brazil, too, are planning similar resorts in different areas.


As mentioned, eco property booms in Brazil are to be expected, and, as a country experiencing great growth in overall real estate market, particularly, a development, which gives priority to ecologically friendly construction, such interests are only natural.


However, when such an interest is spotted in a developed country such as the UK, it appears surprising to most analysts. The United Kingdom has an affluent upper class that is very cautious about environmental protection and issues related to that field, which is not found in Brazil.


As referred to by the 'Times Online', being a class of 'affluent eco-worriers', people are the primary driving factor behind interest shown in eco property in the developed countries. It is said that people need to have money, to act on a belief in eco property.


But, a recent report released by Smart Money has suggested that an eco-home could cost any amount between three to five percent, which is more than a conventional home of the same size and amenities, irrespective of the place where it is located. However, the same report also states that there is also a downward movement seen in pricing of eco property, which is yet to translate into any real demand. Hence, the opinions of analysts differ on whether it will happen in the near future.

Labels: Environment-friendly, Latest-News, Market-Trends

A new golfing resort has been granted planning permission in Brazil, which could possibly attract the sport fans to purchase a property in the country.

The golfing resort will be located in Belmonte, and the work on the building is likely to be complete within 18 months.

The resort will be managed by David Lloyd, the Global leisure club chain, and an agreement to this effect has been signed, which indicates the level of international interest, and the investment that Brazil is currently attracting.

With more than 80,000 members, David Lloyd will receive information about the golfing opportunities at the Brazilian resort, which will provide sufficient international exposure to the nation.

Belmonte is a beautiful stretch of coastline, beginning from Santa Cruz Cabralia, and continues till the boundary between Bahia and Espirito Santa states.

The coastal city has its own airport, and hence those considering property investment in the region, get to access their property by the air.

VRG, the premium airline in Brazil, announced operation of an additional flight connecting Sao Paulo to Madrid, last week. This will be the tenth international route by the airline, forming a part of its plan to reach out to a broader market.

Labels: Golf-property, Latest-News

Investor all over the world should consider Brazil as place to put in their money. Developments are sprouting all over the country and to counter any possible ecological disaster, the government instituted strict policies safeguarding the environment.

David Beckham, one of football’s notable, will open an academy right in Brazil more particularly in Natal. His proposed project has already gotten the nod from the environmental authorities tasked to man construction of edifices. This will include a mini-stadium and a small sports complex. There will also be an area for training and a provision for living quarters where trainees will be accommodated. This is projected to draw even more visitors to the place. This is set to open by 2014 in time for the FIFA World cup. It is laudable that it passed the stringent requirements for environmental compliance.

Other projects did not have an easy time in getting the approval of the authorities. One such development is the Grand Golf Natal which has yet to satisfy the requirements in terms of waste treatment and the specifics on its water supply. The developers need to present an explanation of the resort operation’s effect on the environment.

The Brazilian government has strict standards regarding the country’s environmental sustainability thus the enforcement of eco-friendly policies. It is believed that such adherence to the law will guarantee that the natural resources which attract visitors to Brazil will be preserved. Tourists will have a reason to come back and experience the beauty of the country and this will in return create a growth in the rental revenues. At the same time, this is a clear manifestation that development and ecological balance can co-exist and the Beckham Academy can attest to that.

Labels: Environment-friendly, Latest-News, Natal

LandAmerica Financial Group will be the sponsor of the 2008 Brazil Real Estate Summit. The event will took place on Wednesday March 5th at Le Parker Meridien in New York.

The event which was organised by the Brazilian-American Chamber of Commerce provided insights and strategies for competing in the real estate sector. Real estate executives from across the world assembled at the event along with leading financial experts and business leaders and exhibited the property investment opportunities in Brazil.

Overseas property investors have been advised to pay close attention to Brazil over the next few years as they stated that Brazil could potentially experience a property boom in the near future. The half day conference observed various factors that are decisive to the success of Brazilian real estate investment, from tax and legal concerns, title insurance to the countless investment options available to the overseas investors.

Brazil's appeal as an investment market is spreading across the world Since Brazil is not been so badly affected by the current credit crisis; this trend is expected to continue. The country was praised for offering a strong and growing economy, which has led to capital growth in its housing market. Commenting on this development, property experts said that it is expected to contribute to house price inflation in the near future.

For more information about the 2008 Brazil Real Estate Summit, visit www.brazilcham.com.

Labels: Exhibition, Latest-News

Economic boom and easier credit terms have sent Brazil hurtling into a consumption frenzy as millions ... seeking a much wider customer base. Well-heeled Brazilians and international corporations are pouring billions of ... means they know they can do it - real estate agent Salvador Rodrigues said.

Labels: Latest-News, Market-Trends