News

Brazil gets added bite from Breaking Dawn

Ivan Radford — 21/11/2011 12:26:00

house in Brazil to rent" />

Brazilian property has been given added bite by Twilight: Breaking Dawn - Part 1. The final movie in the vampire phenomenon, released last week in the UK, sees human-vampire couple Bella Swan and Edward Cullen travel to Brazil for a romantic honeymoon, where excited fans will see the long-awaited consummation of their relationship.

The pair fly to Mamangua Bay, close to Rio de Janeiro and Sao Paulo, and stay in a glamorous coastal home, which boasts a private beach in addition to luxury furnishings. The 11,000 square-foot property was designed by architect Thiago Bernardes and for devoted followers of the franchise (who divide themselves into Team Edward or Team Jacob after the movie's male hearththrobs), it is now available to rent for $7,000 per night.

While many may turn pale at the cost of the vampire love nest, new investors are still sinking their teeth into Brazil's real estate as demand for both rental accommodation and residential homes increases. The beach house's starring role in Twilight can only attract more visitors and holiday home hunters to the country, boosting Brazil's already booming tourism industry.

Indeed, Latin America's airports are currently more successful than ever. "Aviation in LatAm is a bright spot in the aviation world - the only region generating aggregate profits for three consecutive years," the International Air Transport Association said this week.

"September figures show the region's international passenger traffic growing faster than the global average," added the IATA, "and the four top growth markets for premium traffic over the first nine months of the year are either connected to, or within, the region."

But OPP reports that changes are needed to fully take advantage of Twilight's international appeal. As the "economic centre" of the country, Sao Paulo in particular needs "world class connectivity", the IATA said, highlighting that aviation contributes 1 per cent of Brazil's GDP plus 700,000 jobs.

If Brazil can follow IATA's advice, Twilight's impact upon the country's housing demand could prove very strong. As the country continues to clean up its slums in preparation for the World Cup, Twilight's inter-species romance will bring a new audience of non-sports fans to Brazil's property market. Whether buyers are Team Edward, Team Jacob or Team FIFA, Brazil's real estate remains a fangtastic opportunity.

Looking for somewhere to stake your investment?

Browse our mouth-watering listings of houses, apartments and other Brazilian property:

http://brazil.themovechannel.com/property/all

Brazil bug spreads as interest becomes infectious

Ivan Radford — 31/10/2011 12:15:00

Natal property prices and demand up" />

Photo credit: Ryan Joy

Brazil’s property bug spread further this week, as online travel bookings to the country ballooned by 90 per cent in 2011.

Expedia announced the growth as property demand, house prices and new developments all caught international investment fever. With tourism up and the housing market strong, interest in Brazilian real estate is infectious.

Natal is one of the most infected areas. Property demand there is contagious, as renewable energy developments rush to rent out real estate.

Samantha Gore, of Natal-based uv10.com, told OPP: “There is literally nothing available for rent in Gostoso right now. Rio Grande do Norte has emerged as a Brazilian state with high potential for wind energy... Demand is outweighing supply, with Brazilian and foreign tourists battling the wind farm workers over a limited pool of rental accommodation.”

As a result, Natal property figures are high, providing strong opportunities for foreign buyers. Gore added: “Investors will enjoy the holy grail of a captive rental audience in an increasingly popular location.”

But the Brazil bug is not just contained to the Rio Grande do Norte region. Sao Paulo property prices have risen by 85 per cent over the past 30 months, according to market research company Ibope, and the fever is showing no sign of cooling down, as investors pour into the country.

Speaking to Reuters, a researcher commented: "There is still no sign of property prices settling, even as increases have been notable. Annual growth around 30 percent has kept up since 2009."

With the 2016 Olympics and the World Cup in 2014, Brazil is far from a quarantine zone. International travellers from the UK, U.S, France and Spain are all carriers, with 4.4 million people visiting Brazil in the first half of 2011, according to the Ministry of Tourism.

Ray Withers, Director of international real estate agent Property Frontiers, commented: "We have been seeing a rising level of interest in Brazil so we are hardly surprised by the increasing tourist figures and surge of bookings on Expedia.

“As the nation becomes more popular with world renowned events coming to town, Brazil will develop a modern infrastructure bringing a wealth of social and economic benefits as well as helping Brazil appear more visible in the global arenas of tourism and property, factors that are encouraging investors to look into the returns available from the bubbling Brazilian property market."

Have you caught the Brazil bug?

Browse our listings of apartments, villas and other Brazilian property:

http://brazil.themovechannel.com/property/all

Brazil tourism boom boosts housing demand

admin — 14/09/2011 11:16:00

Photo credit: Vismar Ravagnani

Brazil's booming tourism industry continues to grow this year, boosting the country's already bulging housing demand.

Tourist arrivals in Brazil increased by 18.8 per cent in the first half of 2011, according to the World Tourism Organisation. As global international tourism grows by almost 5 per cent, Latin American countries have performed remarkably well, experiencing a 15 per cent increase in visitors. But Brazil beat the lot, welcoming a total of 4,351,081 visitors during the first six months of the year.

It’s another sign of the growing popularity of Brazil, and the tourist industry isn’t stopping any time soon. Brazil is preparing to host the FIFA World Cup in 2014 as well as the 2016 Olympics, and the Business Monitor International (BMI) figures forecast a 21.5 per cent increase in tourist arrivals over the next four years, which should generate revenue of around US$9bn.

The rise in foreign interest is boosting the housing market too. The demand for home ownership in Brazil is rocketing with R$34 billion being pumped into the construction of residential property across the country. But supply still fails to meet demand, with the current housing deficit of 7 million continuing to drive new developments.

Ray Withers, director of international real estate agent Property Frontiers, comments: "We have been seeing a consistent influx of investment in Brazil, which will only continue to expand when the Olympics and World Cup arrive. These events will spur Brazil to develop a modern infrastructure, encouraging investors to look into the returns available from Brazilian property."

As reports predict a 20 per cent rise in the country's population over the next 10 years, you can bet that Brazil will be building property for some time to come.

Interested in property in Brazil?

Browse our listings of houses, apartments, villas and other Brazilian property:

http://brazil.themovechannel.com/property/all/

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Rio Grande do Norte most sought after property destination in Brazil

admin — 18/08/2011 10:16:00

Photo credit: Ricardo

Leading independent international property search portal TheMoveChannel.com has revealed that Rio Grande do Norte is the most sought after property destination in Brazil. The state, located in the North East, accounted for 54.6 per cent of all enquiries by overseas investors on the site over the last 12 months.

Literally known as the "Great River of the North" in reference to the mouth of the Potengi River, and home to the popular property hotspot of Natal city, Rio Grande do Norte received almost double the number of enquiries compared to the second most sought after destination – the state of Ceara, the 8th largest in Brazil in terms of population and also located in the North East.

Neighbouring state Paraiba ranked third most in demand with 5.2% of the 4,266 enquiries followed by Bahia with 4.6% and Alagoas in fifth place with 4.4%. Interestingly, global tourism hotspot Rio de Janeiro ranked in a somewhat surprising 11th place with less than 1% of potential property buyer enquiries.

Dan Johnson, MD of TheMoveChannel.com, comments, "Having visited Brazil previously I can clearly see the appeal of owning and investing in property in this booming Latin American nation. Labelled a 'global superpower', Brazil’s stable and continuously growing economy provides a welcome haven for investors who are keen to avoid volatile markets such as Greece, Italy and the USA.

"We have seen the level of interest in property in the North East of Brazil especially rise steadily over the last 12 months with the state of Rio Grande do Norte, home to World Cup host city Natal, clearly in demand. As we approach the 2014 World Cup and indeed the 2016 Summer Olympic Games we expect enquiry levels to increase further."

A BRIC economy and still an emerging global property market, property prices in Brazil remain lower than many other destinations. TheMoveChannel.com data reveals that 62% of all properties listed are below £25,000, 9.8% of properties are priced between £75,000 and £100,000 and only 5% above £100,000.

Dan Johnson concludes, "Owning a property in Brazil remains relatively affordable due to low land prices and cheap construction costs. There is a wide variety of stock available from modern off-plan apartments and condos through to luxurious frontline villas with 5* facilities. We are also seeing a rise in the number of land ownership opportunities with the option for owners to hold and sell on, build and sell on, or construct their dream home for their own use."

To view hundreds of properties across Brazil visit www.TheMoveChannel.com.

Notes to Editors

Founded in 1999, TheMoveChannel.com is the leading independent website for international property, with more than 400,000 listings in over 100 countries around the world, marketed on behalf of agents, developers and private owners.

The website address is http://www.TheMoveChannel.com and the office address is 45 Lafone Street, Shad Thames, London, SE1 2LX.

Contact Dan Johnson on 0207 952 7650 for further information.

British business betting on Brazil

admin — 16/08/2011 11:43:00

Photo credit: Adrien Vieira de Mello

British businesses are betting on Brazil as the country continues to attract interest from overseas investors.

Brazil has been on the up in 2011, following a period of the country's highest economic growth in 25 years. Now, British businesses are heading to Latin America, drawn by a country that is still growing steadily despite the global financial concerns facing others.

"The reason I am here is that they are saying Brazil is the eighth biggest economy by GDP and there has to be a market for our products here," Essex businessman Peter O’Sullivan told The Telegraph yesterday.

Brazil has long been expected to become the world's fifth biggest economy by 2016, when the country will host the Olympics. As development continues in the run-up to the sporting event, the Brazilian government are launching initiatives designed to make property investment easier and real estate funds clearer.

The real estate market's increased financial transparency, coupled with forecasts of rising property prices because of the Olympics, makes Brazil a safe bet for investment.

"Because we are a niche our European competitors would probably not think of going to Brazil," Mr O'Sullivan added. "Coming out here we will probably be the only people doing it."

Interested in property in Brazil?

Browse our listings of apartments, houses and other property in Brazil:

http://brazil.themovechannel.com/property/all/

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Brazilian property market 'grew in Q3'

admin — 14/11/2011 08:46:00

During the third quarter of 2011, the real estate market in Brazil continued to grow, with the Sao Paulo office sector putting in a particularly strong performance.

This is according to a report published by Cushman & Wakefield, which revealed that net absorption across all the cities surveyed was 52.3 per cent higher in this period than the figure recorded in the three months from April to June this year.

Meanwhile, the average asking price for rents has climbed by 2.5 per cent year on year, to stand at R$71.50 (£25.56) per sq m per month.

Source: PropertyShowrooms

Video: Former JetBlue CEO on investing in Brazil

admin — 11/11/2011 05:03:00

After the successful founding of JetBlue in America, CEO David Neeleman talks about his decision to move to Brazil and launch a new airline.

Speaking of the strong economy and government support in foreign start-ups, Neeleman concludes that business opportunities in Brazil are booming for overseas investors.

Watch the full video interview on TheMoveChannel.tv:

http://www.themovechannel.tv/2011/11/former-jetblue-ceo-on-starting-azul-airlines/

Brazilian commercial property 'performing well'

admin — 07/11/2011 09:18:00

Brazil has been highlighted as one of the top performing commercial real estate markets in the world at present in a new study.

The Royal Institution of Chartered Surveyors (Rics) Global Commercial Property Survey for the third quarter of 2011 predicted that Brazil's momentum will continue throughout the final quarter of this year.

According to the organisation, "rental and capital value expectations remain high", while the picture for demand from investors looks strong, despite weakening slightly compared to the second quarter of 2011.

Source: Property Showrooms

Video: Interview: Brazil at the World Travel Market London

admin — 01/11/2011 06:06:00

Brazil's tourist industry is very confident at the moment, as the country prepares to host the World Cup and Olympics in future years.

Speaking at the World Travel Market London, Glauco Chris Fuzinato, the UK and Ireland Director of the Brazilian Tourist Office, commented: "It’s an amazing chievement for Brazil to host both – we're possibly the first nation to host one event after the other."

As the tournaments approach, the government is investing heavily in developments across the country for both real estate and tourist infrastructure, and the economy just keeps on growing.

"We are expecting to have 300 new hotels built, and that is all over Brazil... We also have a huge budget to refurbish and renew the airports and the infrastructures," said Fuzinato, adding: "Brazil definitely is one of the biggest and the strongest nations nowadays."

Watch the full video report at TheMoveChannel.tv:

http://www.themovechannel.tv/2011/10/brazil-at-the-world-travel-market-london-exposure-tv/

Inflation in Brazil slowing down for the first time in 14 months

admin — 26/10/2011 07:10:00

Economists covering Brazil cut their 2012 inflation forecast for the first time in eight weeks, cementing expectations that the central bank will continue to cut interest rates.

Consumer prices will rise 5.6% next year, according to the median forecast in an Oct. 21 central bank survey of about 100 economists published Monday, compared with a forecast of 5.61% the previous week. Analysts also dropped their forecast that Brazil will miss its inflation target this year for the first time since 2003. Prices, as measured by the IPCA index, will gain 6.5% this year, from the week-earlier forecast of 6.52%, the survey showed.

The bank last week cut its benchmark Selic rate to 11.5% from 12%, saying this would protect Brazil from a more “restrictive” global economy without compromising the inflation target. Economists expect policy makers to lower borrowing costs by half a point at their November policy meeting, and to 10.5% by the end of 2012, the survey found, unchanged from the previous week’s forecasts.

Latin America’s biggest economy is expected to grow 3.3% this year, down from a forecast of 3.42% the previous week, the survey showed. Analysts also cut their 2012 growth forecast to 3.51% from 3.6%.

Source: En.MercoPress.com

Tourism boom to boost Brazil property

admin — 21/10/2011 06:40:00

As more tourists than ever make their way to Brazil, the property market has experienced a surge caused by overseas investors and visitors keen to get their own place in the sun.

And, with the country hosting two major international sporting events in the next five years, tourist numbers in the South American country will continue to rise, giving the property market a prolonged boost.

New figures from the Brazilian Ministry of Tourism show that tourism numbers increased in the first six months of this year compared to the same period in 2010, reaching a total of 4.4 million.

It is thought the greater role Brazil is playing on the world stage has helped introduce it into the consciousness of people around the globe, giving it the edge over other holiday destinations that it may previously have lost out to.

Source: UV10.com

South America and Indonesia "prime" for fractional

admin — 03/10/2011 10:11:00

Fractional opportunities are ripe in markets around the Americas and Indonesia, according to industry experts.

Speaking at the RDO Conference this week, Gregg Anderson, global vice president for The Registry Collection, said: From Brazil and Argentina to Bermuda and Bali, there are many locations prime for fractional development.”

However, Anderson warned that repeat popularity in these destinations needs to take off before fractional projects should be initiated. “You can’t create a fractional resort and a popular destination at the same time,” he added.

The comments came at a fractional debate during the RDO Conference, chaired by Philip Bacon, managing director in London and Spain of HVS.

Source: OPP.org.uk

Sao Paulo prices shoot up by nearly 20 per cent

admin — 09/09/2011 08:06:00

Sao Paulo’s property market has seen prices shoot up by nearly 20 per cent in the last year according to a new report from Global Property Guide.

Advertised prices rose by 19.5 per cent in the year ending June 2011.

The growing number of middle class people in Brazil has contributed to the increase, says the report.

However Matthew Montagu-Pollock, owner of GPG, says that the figures should be treated cautiously rather an indicator of a wider trend.

Source: OPP.org.uk

Survey reveals top emerging markets for expat transfers

admin — 22/08/2011 10:02:00

Relocation company Cartus surveyed over 100 multinational corporations on the main destinations of their employees in the next two years.

Unsurprisingly, the fast-growing "BRIC" countries, Brazil, Russia, India and China, were the most popular emerging markets to send staff to, with China and India taking the top two spots respectively. More than half (53 per cent) of corporations identified China as one of the top countries to which they were relocating workers, while 45 per cent named India.

A number of less well-known emerging markets however were also common destinations, including Vietnam (11th place) and Saudi Arabia (ninth place). Overall, Cartus identified 44 key emerging markets – defined in the study as "locations that have infrastructure, talent or administrative difficulties that require targeted strategies" – which staff were being sent to.

Matt Spinolo, the executive vice president of Cartus, said: “Our 2011 emerging markets survey pointed to a broad range of locations into which companies expect to have relocation volume over the next two years."

Source: The Telegraph

Rio commuter operator seeks capacity increase

admin — 19/08/2011 07:04:00

BRAZIL: Rio de Janeiro commuter operator SuperVia has awarded Bombardier Transportation a contract to supply ETCS Level 1 signalling with Interflo automatic train protection for a R$2·4bn upgrade of its 225 km network.

According to Bombardier, this will be the first implementation of ERTMS in South America.

SuperVia is undertaking track, electrification and signalling renewals on its five lines serving 89 stations with the aim of being able to carry 1 million passengers a day by 2015. New signalling allowing headways to be cut by half to 3 min is due to be rolled out on the core section between Central do Brasil and Deodoro from November 2012, and then to Japeri in January 2013, Santa Cruz in March 2013, Saracuruna in May 2013 and Belford Roxo in July 2013.

Source: RailwayGazette.com

Rio de Janeiro offers "good" options for property investment

admin — 11/08/2011 06:52:00

Rio de Janeiro has been tipped as one hotspot for property investment in Brazil by a real estate expert.

Mark Sharp, chief executive officer of the Association of International Property Professionals, explained that the Brazilian market as a whole offers opportunities for investors, but that Rio de Janeiro stands out.

He pointed to the beach side part of the city, which is popular with tourists, adding that the country's government has made a concerted effort to attract more visitors to the nation.

Mr Sharp also revealed that the property sector in Rio de Janeiro "looks set to see steady growth".

Source: PropertyShowrooms.com

Sporting events 'should boost Brazil property investment'

admin — 10/08/2011 06:18:00

People looking for property in Brazil may want to find somewhere sooner rather than later after one expert noted that the sporting events due to take place in the country over the coming years may boost prices.

Mark Sharp, chief executive officer of the Association of International Property Professionals, explained that based on other locations that have hosted the Olympics and World Cup, real estate values could increase by as much as 25 per cent.

"Experience from around the world tends to show that, on the whole, big tournaments have a positive effect on property prices," he stated.

Brazil is gearing up to host the football World Cup in 2014 and two years later it will be holding the Olympic Games.

Source: PropertyShowrooms.com

Brazilian Real slides as government taxes currency derivatives

admin — 28/07/2011 06:04:00

Brazil’s real declined by the most in more than a month after the government said it will levy a tax on some investments in foreign-exchange derivatives, the latest step in a bid to stem the currency’s rally.

The real dropped 1.1 percent to 1.5556 per dollar, the biggest decline since May 11, from 1.5391 yesterday. It earlier fell as much as 2 percent to 1.5704 per dollar, the largest drop since June 2010.

Brazil took further action to end a rally in the real after efforts to weaken the currency this year failed to prevent it from reaching a 12-year high against the dollar yesterday. The real tumbled after Brazil authorized the monetary council to charge a 1 percent tax on certain derivatives operations and to raise taxes on futures operations.

“This obviously increases the firepower of the government to fight a fight against the currency appreciation,” said Rogerio Oliveira, an emerging-markets strategist at Morgan Stanley in New York. “It makes it more expensive to trade the currency in the derivative market,” he said in a telephone interview.

Source: BusinessWeek.com

UK government targets closer trade links with Brazil

admin — 20/07/2011 05:09:00

The recent visit of British Deputy Prime Minister Nick Clegg to Brazil on a trade mission has highlighted the importance of closer trade links between the two countries as Brazil develops into a global economic powerhouse. Mr. Clegg underlined the growing importance of UK investments in Brazil and said he wants UK exports to the country to double by 2015.

In his first official visit to the country, Mr. Clegg spoke of Brazil as a ‘natural partner’ for the UK and emphasised the many Brazilian investment opportunities open to British companies. "As Brazil is set to become the fifth largest economy in the world, UK companies should seize on every opportunity to prosper in Brazil," he said.

UK exports currently run to £2.1 billion a year and the government is keen for British investment in Brazil to reach £4 billion over the next four years. During the visit, deals worth £2.5 billion were announced and further Brazilian investment opportunities earmarked, moves that were welcomed by foreign companies already in Brazil such as Obelisk International, who have four Minha Casa Minha Vida projects in the Rio Grande do Norte region.

Thus far, British companies have been a little slow to recognize the potential of Brazil and other European nations have made bolder and more significant Brazilian investments. Martin Raven, former UK consul General in Sao Paulo, said that although it can be difficult for companies to invest in Brazil, recent examples from Lloyds of London and Experian have created successful ventures in Brazil. However, he also said that Germany, France and Italy remain ahead in investment in Brazil and have established a solid presence.

Source: BuyAssociation.co.uk

Latin American and Caribbean Growth forecast to be 4.7%

Sarah Kendell — 14/07/2011 12:00:00

According to an ECLAC report, in 2011 Latin America and the Caribbean will maintain the recovery that began in the second half of 2009 following the international economic crisis, and will grow by 4.7% thanks to the boost of internal demand.

In the Economic Survey of Latin America and the Caribbean 2010-2011, presented today by the Executive Secretary of the United Nations body, Alicia Bárcena, ECLAC points out that this growth implies a 3.6% rise in per capital GDP, and declares that the current situation calls for close attention to be paid to the macroeconomic policy challenges that will be facing the region.

Ms. Bárcena wonders "How prepared is Latin America and the Caribbean for managing economic growth? We must recover the fiscal space in order to be able to take measures to ensure sustained growth with productive employment and equality".

In 2011, regional growth is mainly being driven by private consumption, which is attributable to improved labour indicators and increased credit. At the same time, the fact that idle productive capacity is being used up to sustain internal demand is pushing up investment, which is benefiting from greater credit availability to return to pre-crisis levels.

According to the report, growth will also have a positive impact on the region's labour market, which means that the unemployment rate may fall from 7.3% in 2010 to between 6.7% and 7% in 2011.

As in previous years, the region has three tier growth. On the one hand, the highest growth rates are in South America, which will grow by 5.1% in 2011, on the back of a significant improvement in its terms of trade by virtue of higher prices for its commodity exports (its specialization) . Meanwhile, Central America will grow by 4.3% and the Caribbean by 1.9%.

In terms of countries, the fastest growing this year will be Panama (8.5%), followed by Argentina (8.3%), Haiti (8.0%) and Peru (7.1%). They are followed by Uruguay with 6.8%, Ecuador (6.4%), Chile (6.3%) and Paraguay (5.7%). At the same time, Brazil and Mexico will grow by 4.0%, the Bolivarian Republic of Venezuela by 4.5% and Colombia by 5.3%.

In the Economic Survey 2010-2011, ECLAC states that rising international food and fuel prices, in a context of higher internal demand, have given rise to inflationary pressures. As a result, several of the region's countries have toughened their monetary policy, which has increased the difference between internal and international interest rates. In a context characterized by extremely high external liquidity, this may lead to exchange rate appreciation in the region.

Latin America and the Caribbean is expected to grow by 4.1% in 2012, which is the equivalent of a 3.0% rise in per capita GDP, although much uncertainty remains in the light of the situation in the rest of the world.

In its report, ECLAC highlights the macroeconomic policy challenges facing the region's government in a context of high commodity prices, considerable international liquidity and the robustness of certain Latin American economies.

In the current scenario, the region's attractiveness to capital inflows and appreciation pressure on local currencies could be of benefit in the short term by helping to relieve poverty and bring down food prices. However, this situation involves a series of risks and difficulties.

First, the region becomes vulnerable to speculative capital movements in the quest for short-term gains, and this may create bubbles in the prices of financial assets and property markets.

Second, high international liquidity pushes down real exchange rates while pushing up commodity prices (which encourages intensive specialization in commodity exports and production). This increases the vulnerability of the region's economies to external shocks and creates greater investment volatility, thereby negatively affecting the capacity to grow, generate productive employment and reduce inequality.

According to ECLAC, the region's economic authorities should implement measures to contain currency appreciation by combining foreign exchange market interventions, checks on capital inflows and financial regulations. Such measures would be boosted by an accompanying fiscal policy aimed at increasing public sector savings.

Lastly, the report points out the uncertainties in the international economy, particularly in the United States, Europe and Japan, and the possibility of a worsening international climate limiting the region's growth potential. It is therefore advisable to take advantage of the current favourable conditions to recover the policy space that was lost in the crisis.

Record June at Heathrow for passenger numbers

admin — 11/07/2011 11:42:00

A record June at Heathrow helped BAA to enjoy increased passenger numbers at its UK airports last month.

The company's six airports handled a total of 9.9 million passengers - up 4.4% on the June 2010 total. Heathrow handled 6.1 million passengers last month, a 6.3% rise on June 2010 and the west London airport's busiest-ever June.

There was a big rise in the number of people flying to Brazil from Heathrow, while US destinations also did well.

Source: The Independent

40 million Brazilians climbed to middle class in last eight years

admin — 29/06/2011 10:02:00

“The years 2010 and 2011 have been exceptional” since ten million people have been incorporated to the C bracket of society said Professor Marcelo Neri.

“Economic growth and inequality reduction” have been the main reasons for low income people to abandon poverty supported by an improvement in health and education.

“Inequality in Brazil is falling significantly and fast”, said Neri showing that the Gini inequality index dropped to 1.1% between 2000 and 2007.

At the same time the new members of the low middle class, besides consuming new foods and textiles are also involved in purchasing other items such as fuel, telecommunications and computers, emphasized Professor Neri.

Source: MercoPress

Bubble trouble in Brazil

admin — 15/06/2011 07:34:00

Property prices are skyrocketing in Brazil. The construction sector is booming. And the mortgage market is expanding rapidly. But there is a growing concern that all this is unsustainable. And imbalances in the economy — an overvalued currency and high inflation — are exacerbating the dangers of the looming credit and property bubble.

The average asking prices of new apartments across the country soared by 24.7% in April 2011 from a year earlier, according to Exame Magazine (using data from Ibope Intelligence, the largest Brazilian market intelligence firm).

Based on the Ibope Intelligence figures, in April 2011:

*In Ipanema, Rio de Janeiro’s most expensive district, the average price of new properties rose 36% y-o-y to BRL13,031 (US$8,212) per sq. m., while the price of existing properties increased 25% y-o-y to BRL12,134 (US$7,646) per sq. m.

*In Jardim Paulista, Sao Paolo’s most expensive district, the average price of new properties rose 39% y-o-y to BRL9,120 per sq. m (US$5,747); the average price of existing properties escalated 49% y-o-y to BRL6,959 (US$4,385) per sq. m.

Source: GlobaPropertyGuide.com

British retailers 'missing out on South American boom'

admin — 10/06/2011 07:11:00

Brazil is rated the most attractive emerging country for retail expansion, followed by Uruguay in second and Chile in third in the report by global management consulting firm A.T. Kearney.

But while foreign major retailers from other parts of the world are now targeting South America, major British players such as Marks & Spencer, Tesco and Sainsbury's have not followed suit.

Wal-Mart, the world’s largest retailer, plans to invest $759 million in Brazil this year, while Carrefour SA, the second-largest retailer, also has stores in Brazil, as well as Colombia and Argentina.

Emmanuel Hembert, a British retail expert at A.T. Kearney, said: “Tesco, M&S and Sainsbury’s are planning developments in Eastern Europe and Asia, which are emerging markets, but have not shown plans to open stores in South America.

Source: Telegraph.co.uk

Volcanic ash cloud disrupts S. America flights

admin — 09/06/2011 07:04:00

A vast cloud of ash spewing from a Chilean volcano disrupted air travel on Tuesday across much of South America, while heavy rains around the eruption site prompted fears of mudslides.

Air traffic was sharply curtailed on the continent as the ash cloud drifted over Argentina, Uruguay and into Brazil. Flights in and out of the Argentine capital Buenos Aires, a key regional hub, were cancelled for most of the day.

Rain mixed with volcanic ash poured down on communities near the Puyehue volcano, raising fears that the weight of falling water and volcanic materials could cause mudslides and threaten dams in the area, some 870km south of the capital Santiago.

A milky coating of ash settled on the waters of Gol Gol river, which was swollen by heavy rains.

Source: Relax.com.sg

Brazil expanded at an annualized 5% in first quarter

admin — 06/06/2011 11:38:00

Brazil's first quarter GDP grew 1.3% compared to the previous quarter – an annualized rate of over 5% – and 4.2% against the first quarter of 2010 revealed on Friday the Brazilian government.

According to disclosed numbers, the farming segment was one of the top responsible for the GDP figures in the first trimester, with a growth of 3.3%, followed by the industrial segment with a 2.2% increase in relation to the last trimester of 2010.

According to the IBGE (Brazilian Institute of Geography and Statistics), in the first quarter of 2011, the investment level resumed its growth registering an expansion of 1.2%. Thus, in the first three months of the year, the rate of investments reached 18.4% of the GDP a superior rate than the registered during the same period of 2009 (16.3%) and 2010 (18.2%), but slightly inferior to the 2008 (of 18.5%).

Moreover, the saving rate for the first quarter represented 15.8% of the GDP.

Source: MercoPress

Brazil property sales to shake off rate rises

admin — 26/05/2011 07:02:00

Brazil's third largest homebuilder says sales are unlikely to be affected by increased borrowing costs so long as the interest rate is kept below 14%. Duilio Calciolari is the new chief executive officer of Gafisa SA. which is Brazil's third largest homebuilder, and doesn't feel there should be any significant impact if rates go up to 14% to control inflation.

The bank has already raised interest rates to 12%, but employment is extremely strong and banks are becoming ever more willing to finance mortgages. An estimated 9.1 million Brazilians intend to buy property this year, all of which bodes extremely well for Gafisa.

The unemployment rate in Brazil hit a record low in December at just 5.7%, and was 6.5% in March which is the lowest ever recorded rate for that month. The Brazilian president, Dilma Rousseff recently said that the economy is near full employment.

However as the economy continues to expand, the rate of inflation is also accelerating and is now running at 6.51% which is the highest rate since 2005 and above the target range set by the government. A recent central bank survey of 100 economists revealed that most expect the interest rates to end the year at 12.5%.

Source: IBTimes.com

Brazil considers reducing protection for forests

admin — 25/05/2011 06:59:00

Brazil's lower house passed legislation Tuesday night that would loosen restrictions on how small farmers use their land in the Amazon forest, but lawmakers dropped a change that most worried environmentalists.

Environmentalists still fear the revision bill would bring increased deforestation. Operaters of small-scale farms and ranches defend the measure as a way to let them produce to full capacity and boost Brazil's food output.

The measure, which had been debated off and on in the House of Deputies for nearly two years, easily passed 410-63, but is expected to face a tougher fight when it goes before the Senate.

The bill would let farmers and ranchers with small holdings work land closer to river banks and to use hilltops.

Source: abcNews.go.com

Brazil, India deficits leads to ‘inevitable’ crisis warns China

admin — 17/05/2011 07:46:00

Li Daokui told a forum that emerging economies such as Brazil and India face fiscal and current account deficits and a crisis was “inevitable,” Caijing Magazine reported on its website www.caijing.com.cn. “China will play a very important role during the financial consolidation”.

But there will be no such crisis in China because it is quite different from most other developing and developed countries,” he said. In February, the Indian government raised “serious concern” about a trade deficit that could more than double to 278.5 billion USD in three years and may cause an unquestionable current account deficit.

Brazil's current account deficit ballooned to a record for the month of March as foreign companies in Brazil sent more profits home and Brazilians spent more on travel and goods overseas. In January, the International Monetary Fund warned fiscal balances in Brazil, China and India were weaker than it had earlier projected.

Li Daokui also expects the US dollar, Euro and Yen to face downward pressure over the medium and long term.

Source: MercoPress.com

Agent predicts growing demand for holiday homes in northeast Brazil

admin — 10/05/2011 07:56:00

With the runaway optimism created by widespread Government social housing programmes and the hosting of the 2014 FIFA World Cup and 2016 Olympics, Brazil is attracting an abundance of serious property investor attention but it is also a holiday home destination. The northeast coastline around Natal is proving popular with second home seekers, according to property specialists in the region uv10.

‘We have some of the world’s best beaches, average year round daily temperatures of 28ºC, excellent cuisine, a low cost of living and a lively, friendly atmosphere. Little wonder 96% of first time visitors vow to return,’ said Samantha Gore, sales manager at uv10.

Beachfront land is being sensitively developed by Europeans to luxurious standards with the added value of Spas, internationally branded hotels and a wide range of sporting facilities. ‘Prices are at their best now but on an upward trajectory, particularly as Natal’s new airport takes shape. With the current international airport at 110% capacity, its replacement is much needed and will become the largest airport in Latin America accepting five million passengers each year,’ explained Gore.

‘Flying time is just seven to nine hours from most of Western Europe. With free and clear title deed available to foreign property owners, Brazil is a strong holiday home contender,’ she added.

Source: PropertyCommunity.com

'Literally millions' of Brazilians plan to buy property

admin — 19/04/2011 08:33:00

Rapid growth is expected within the Brazilian property market following the publication of new research from a leading local property portal.

According to uV10, at the end of 2010 some 9.1 million Brazilian families revealed their intentions to purchase a home in the country this year.

It is expected that developers in the South American location will be unable to keep up with demand, with their currently a deficit of six to seven million homes in the country.

Indeed, experts and market analyst suggest that the backlog will take ten to 15 years to meet.

Source: PropertyShowrooms.com

BRIC countries to overtake the US economy by 2015

admin — 11/04/2011 12:33:00

Estimated on the basis of current market exchange rates, the BRIC grouping would make up about 22 % of the world economy by then, said the Annual Report on BRICS' Social-Economic Development (2011), a blue book released this week by the Social Sciences Academic Press of China.

BRIC formally became BRICS this year with the admission of South Africa into its fold. This year's BRICS summit is scheduled to be held in China's Sanya resort next week, April 13-14.

The report predicted that the BRICS (Brazil, Russia, Indian, China and South Africa) countries would have a stable and fairly rapid growth momentum in the next 15 years due to a favourable external environment brought on by the steady growth in major developed economies.

Lin Yueqin, the book's executive editor, noted that the purpose of the study was to reveal the underlying rules of development in emerging economies and the tendencies of global development and governance, Xinhua news agency reported Friday.

Source: MercoPress

Brazilian Real falls thanks to government intervention

admin — 01/04/2011 11:56:00

The Brazilian central bank intervened five times yesterday to keep the value of its national currency under control, with the Real finally seeing an 0.2% fall from three-year highs.

The currency is appreciating at the fastest rate of all the emerging markets, having grown 42% in three years, according to Bloomberg. Wednesday saw the Real hit its highest levels since August 2008, prompting government intervention to keep it under control.

The Brazilian central bank bought dollars three times yesterday, and also auctioned reverse currency swaps to bring the value of the Real down to 1.63 per dollar by close of business yesterday. Economists say given the country's extreme desirability as an investment destination, it is proving difficult to control the rate of appreciation. "There's a clash between the central bank and the market", said Francisco Carvalho at locally based currency brokers BGC Liquidez.

Source: Merco Press

Sao Paulo real estate values take a tumble

admin — 24/03/2011 12:22:00

Property prices in Sao Paulo fell in the final months of 2010 but there is little cause for concern, especially given the rapid growth preceding the minor falls.

The Regional Council of Realtors for the State of Sao Paulo (CRECI-SP), which currently represents 529 estate agents and/or agencies recorded a 3.53% drop in prices year on year for October, as well as a 25.6% sales contraction for the period.

We can take heart in the fact that this is being called a correction. Sceptics will pick up on the fact that the UK crash is still being called a correction by estate agents and market bulls, but in the case of Sao Paulo 1 bedroom apartments grew in value by 100% between 2008 and 2010 according to the regional realtors association EMBRAESP, and 2-4 bedroom apartments by 40-60% during the same period.

With the Brazilian economy still so strong, a population growing rapidly not only in numbers, but so rapidly in affluence that 12 million people were added to the middle class in the last 8 years, not to mention a government dedicated to helping its middle class onto the property ladder, it certainly does look like this cooling will be looked back upon positively. Most likely it will be seen as the point where the runaway growth in the Sao Paulo property market turned into sustainable annual growth.

Source: Overseas Property Mall

Brazil moves to restrict foreign land ownership

admin — 22/03/2011 11:58:00

The Brazilian government is tightening a law that restricts the amount of land foreigners can buy in a move that is aimed at preventing foreign investors from circumventing the interpretation of a law that restricts their direct acquisition of land.

The move comes after agricultural minister Wagner Rossi recently hinted that changes were afoot. ‘We need to distinguish properly on the one hand between speculators and sovereign funds, which are a threat to our sovereignty, and on the other side, foreign investors who come with good projects,’ he said.

It is understood that a new decree will prohibit non Brazilians from buying controlling shares of companies that own vast tracts of territory in the country. Brazilian Attorney General Luiz Inacio Adams has confirmed in a statement that a new ruling exists. According to O Estado de Sao Paulo the Attorney General’s Office has already issued copies of the ruling to state commerce councils responsible for the registration of company agreements.

It’s not clear if deals already agreed could be suspended by tribunals. Since 1971 the Brazilian government has limited the outright purchase of rural farmland by foreigners or companies based abroad for food security reasons. The law says that foreigners can own no more than one fourth of a county, and no one nationality can own more than 10%.

Source: NuWire Investor

Business booms on Brazil's domestic property market

admin — 18/03/2011 12:42:00

A total of 9.1 million families plan to buy real estate in Brazil over the next 12 months which is a huge increase since the Minha Casa Minha Vida (My House, My Life) program was introduced in 2009.

A recent survey carried out by the Data Popular Institute has found that 9.1 million Brazilian families intend to buy a property in Brazil over the next year. This purchase would allow them to leave rental accommodation and become property owners.

The subsidies and benefits included in the social housing program Minha Casa Minha Vida mean that buying instead of renting is an increasingly popular option. Minha Casa Minha Vida offers reduced mortgage interest rates to qualifying families so monthly mortgage payments are invariably cheaper than rent.

The number of potential buyers of Brazilian real estate has increased dramatically since Minha Casa Minha Vida first made its appearance in 2009. Less than two years ago, 4.2 million families had serious plans to buy property, a figure that is now more than twice as high. This massive hike is due to several factors such as the increase in salaries, wider availability of credit and better education, all part of the bigger picture of a booming Brazilian economy.

Source: Merco Press

Brazil’s global influence is growing, says BBC

admin — 11/03/2011 11:07:00

Demand for property in Brazil could be set to rise following the results of a recent survey.

According to a poll by the BBC World Service, the number of people who view Brazil as having a positive influence in the world has risen from 40 per cent last year, to 49 per cent this year. The BBC has said that this is the largest increase in popularity by any of the 16 nations that are polled.

Overall, the ratings for 13 of the nations increased from last year, with the UK being ranked as the second most popular country worldwide. South Africa, host of the 2010 World Cup, also posted a significant rise compared to last year.

GlobeScan chairman Doug Miller said: "The growing credibility of middle powers is the story this year, especially Brazil and South Africa."

Source: Property Showrooms

Brazil raises interest rates amid 'overheating' fears

admin — 03/03/2011 13:08:00

Brazil’s Central bank on Wednesday raised its benchmark overnight rate by a half-point for a second straight meeting to cool inflation that is approaching the upper limit of the government’s target range.

The bank’s policy committee, led by President Alexandre Tombini, voted unanimously, without a bias, to raise the Selic rate 50 basis points, or 0.5 percentage points to 11.75%. “Following the process of adjustment of monetary conditions, the monetary policy committee decided, unanimously, to raise the rate to 11.75% a year, without a bias,” policy makers said in the statement announcing their decision.

Annual inflation in the 1.57 trillion US dollars economy has accelerated every month since August, prompting the bank to raise interest rates in January for the first time since July. The bank maintained the pace of rate increases as it counts on spending cuts and measures to slow credit growth to contain inflation running at a 26-month high, said Gustavo Rangel, chief Brazil economist for ING Financial Markets in New York.

Source: Merco Press

Property price index to increase transparency in Brazil

admin — 01/03/2011 11:25:00

The Ministry of Finance and the Central Bank in Brazil have revealed plans to introduce a new Brazilian Property Price Index to deal with growing interest in the country from interested investors. Brazil's new president Dilma Rousseff is eager for more transparency within the real estate market, and hopes the new development will assist this.

A spokesperson for Obelisk International explained: "The Property Index will be used to compare prices for different types of property in Brazil, both residential and commercial, over periods of time.

"Experts believe the Index will allow the Brazilian property market to be monitored and help avoid potential bubbles and crashes in the future."

At first the index will compare the values of properties in five capitals. Once completely finished, it will include details of the prices of houses and apartments across the whole of Brazil.

Source: Press Association

Experts warn of potential Brazilian sub-prime crisis

admin — 22/02/2011 12:02:00

The Financial Times warns that in spite of the current optimism about the performance of the Brazilian economy, the country could be heading to a ‘sub-prime’ crisis ‘worryingly’ similar to that experienced by the United States.

The article by Paul Marshall argues that Brazil has been living on a credit binge for the last five years with credit expanding 2.4 times nominal GDP. This is not a dangerous ratio because in Brazil loans to GDP are still low by industrialized countries standards, 46%.

(In India and China the credit expansion vs GDP growth ratio is 1.6 and 1.2). But in Brazil the problem is that with a manageable 6% inflation, Brazilian banks charge an average (punitively expensive) lending rate of 25% and in consumer lending 30%.

This means real interest rates between 20/25% compared to 1 to 3% in most countries. “The ramifications are serious as the debt service burden has risen to 24% of disposable income and is set to rise further as rates push higher” and could reach an ‘exorbitant 30% by 2012’.

Source: Merco Press

Brazil's new hot property market

admin — 21/02/2011 14:04:00

I’m facing the ocean. Moon and city light bounces off the breaking waves and the white sand. To my right, three miles of beach opens up. The street market in the middle of the bustling boardwalk is open and it’s buzzing with commerce. Shiny and winking high rises shoot vertically up from the ground. These are the buildings that wealthy Brazilians want to live in.

I’m standing at the edge of the boardwalk outside a trendy new bar. There was nothing here the last time I was in town. Tonight traffic is at a standstill as $80,000 SUVs unload their well-dressed cargo. This is where everyone wants to be—not just for partying…but also to live, do a business deal, have a quiet meal or exercise with friends. Jogging at 5.30 a.m. here is networking time.

This boardwalk of three miles has changed dramatically since the 1980s. Today it’s fully built out. Prices have almost doubled since I first came here three years ago. I expect they will go up further. Demand is surging. Because there is no more developable land all the buyers are competing for the existing inventory.

Members of Real Estate Trend Alert who followed my recommendation to buy here have done very well. To my left I see the wide empty space of Praia Iracema. I’m standing where the boardwalk ends. Iracema is the widest of the city beaches. In places it must be half a mile from the start of the beach (where the temporary beach bars and huts are) to where the waves break.

The Path of Progress is rolling into Iracema just like it did the boardwalk. This time it won’t take 30 years. Development here is being supercharged as part of a $6 billion investment in tourism and infrastructure. Trendy bars and restaurants are already eyeing up plots. They want to be open for business in time for soccer’s Confederations Cup that comes in 2013 and the city’s biggest party yet: the 2014 Soccer World Cup.

Bulldozers have cleared drab temporary beachfront structures to create space for a wide boardwalk. The site is being prepared for the new $135 million aquarium . It’s set to be the largest in South America and one of the continents biggest tourist attractions . This is the place to buy.

Source: NuWire Investor

Developing countries lead commercial property expansion

admin — 15/02/2011 10:52:00

Sentiment towards global commercial real estate continues to improve with Latin America and Asia leading the way while Japan and the peripheral euro area remain near the bottom of the pile, according to a new survey published today.

gents in approximately three quarters of the countries represented in the fourth quarter Global Commercial Property Survey from the Royal Institute of Chartered Surveyors reported greater demand from tenants for commercial property in the final three months of last year.

The quarterly guide to the developing trends in commercial property investment and occupier markets in close to 50 countries around the world also found that expectations for both rents and capital values on balance continue to improve. Rental expectations for the first quarter of 2011 are most positive in Latin and Central America and Asia.

The responses from Peru are particularly upbeat but, amongst the major markets, Hong Kong, China, Singapore and Brazil lead the way. Russia also scored well on the likely trend in rents. The contrast to this is provided by Greece, Spain, the Republic of Ireland and Japan where the net balance of respondents continue to foresee further rental declines.

Source: Investment International

Ailing property market flattens Santander results

admin — 04/02/2011 11:08:00

Spanish bank Santander made more profit in Britain and Brazil than in its home market for the first time, it emerged today , as the group admitted the flotation of its UK arm would be delayed until the second half of 2011.

Profits in the Spanish division have been held back by an ailing economy and troubled property market, which has also weighed down the share price of the bank. The shares were down 31% last year when the Bank of Spain took a tougher stance against property loans causing Santander to take an extraordinary provision of €472m (£399m) in the third quarter.

In Britain, where Santander has expanded rapidly in the past five years by buying Abbey National, Alliance & Leicester and parts of Bradford & Bingley, profit rose 11% to £1.7bn, which the bank said was 18% of the total group profit of €8.1bn. Spain contributed just 15% to group profits, which were down 8.5% year-on-year, while Brazil accounted for 25% of the total.

Emilio Botín, Santander's chairman, tried to play down concerns about Spain. "Doubts about Spain are absolutely exaggerated. Frivolous comparisons have been made with other economies whose public finances and financial systems are far more fragile than ours," Botín said.

He has parachuted in his daughter Ana Botín to be chief executive of the British arm after the sudden departure of António Horta-Osório who is taking the helm of Lloyds Banking Group next month.

Source: The Guardian

PIGS versus BRICs - which property hotspots are best?

Sarah Kendell — 28/01/2011 10:50:00

Individual European property markets vary dramatically, with country annual growth ranging from minus 14.8% in Ireland and minus 3.7% in Spain, to stronger European countries like Poland at 8.1% growth and Turkey at 2%.

Emerging markets might be considered higher reward than European markets. However it is important to note that they can overheat and also be higher risk, Dubai is a classic example of this.

Europe, the PIGS and BRICs

The troubles encountered in the Eurozone, including financial bail outs, the banking review, the establishment of a permanent, Eurozone financial rescue mechanism, all played a role in shaping the developed nations' property market in 2010.

Add to the mix, property buyers wanting to raise finance, as well as watching exchange rates. For example, European banks' exposure to the debt of Spain is €257bn, (according to FT/CEBS analysis) that is a sizeable sum. This will influence access to funding for overseas property purchases.

The Euro area is forecast to grow at 1.3% 2011, vs 6.8% and 6.4% for emerging economies. Economic growth bodes well for property markets, since the wealth generated creates property demand and acts as a driver of the property market.

On the face of it, the emerging economies look a better bet, however they will need resources to grow, both money and raw materials (witness the spate of lead thefts to supply china with base metal requirements). Some emerging markets have not yet got a proven, "foreign property buyer" track record.

Sustainability of the domestic, property markets will also be a key question to bear in mind, as well as how foreign property buyers are treated by regulation.

What does this mean for Overseas property buyers in 2011/12?

A country need not be showing booming property growth right now, for it to be a good future, investment opportunity, but it must have the potential to recover in the medium term. This way property can be bought at keen prices and has the scope to grow as an investment.

Choosing the bank a buyer deals with, could be as important as the country chosen to buy in, for 2011 and beyond. Banks with low exposure to weaker economies and bad debt may be worth seeking out.

Central American airline opens new routes

Sarah Kendell — 26/01/2011 11:30:00

Copa continues to expand and starting June 2011 it will open three new destinations to the cities of Toronto, Canada; Porto Alegre, Brazil and Nassau, Bahamas.

Copa Airlines, subsidiary of Copa Holdings, SA {NYSE: CPA} announced that from June 2011, in order to offer more options to passengers, it will increase daily flight frequencies to various countries in its extensive route network, it will offer more convenient schedules and will open three new destinations to the cities of Toronto, Porto Alegre and Nassau.

"With the opening of these new destinations and increased frequencies from our Hub of the Americas in Panama City, Copa Airlines continues to expand coverage and reaffirming its leadership in Latin America and the Caribbean, offering more international destinations than any another hub in Latin America," stated Pedro Heilbron, president of the airline.

Heilbron also said, "The Hub of the Americas remains the most effective and convenient connection in the continent and the increase in frequencies of our flights will allow us to significantly improve daily arrival and departure schedules, so to continue to offer better connectivity and more options as well as frequent flights and connections throughout the day - even up to six connecting flight options for some markets."

Brazil piques highest level of overseas interest

Catherine Deshayes — 30/11/2010 20:01:00

Brazil is currently the most popular country in the world of overseas property in terms of interest, according to a real estate investment consultancy...

The London based overseas property investment consultancy Colordarcy says it is receiving in excess of 300 enquiries per week, but unfortunately only 30% of the leads qualify because of difficulties in obtaining finance.

‘We get close to 300 enquiries for property in Brazil each week, but we have to turn 70% away because the lack of finance in Brazil at this stage,' said Loxley McKenzie, managing director of the firm.

‘However, we urge investors to buy now if they have the capital, because we expect prices to rise by at least 20% upon mortgages re-entering the market,' he added.

Brazilian property is currently popular mostly because of the fact that several Brazilian developers have begun making affordable housing developments in Brazilian cities available on western markets.

McKenzie points out that there is a supply shortfall of over seven million in the Brazilian housing market and that means millions of families in a position to buy a house rather than the number of houses for sale. The shortage is most severe in terms of quality affordable housing, as much of the affordable stock is in a bad state of repair.

‘If an estate agent had served as the Brazilian President for the last eight years he couldn't have laid better foundations for the Brazilian housing market than president Luiz Inácio Lula da Silva did in his two terms,' said McKenzie.

The Brazil constitution sets out that the maximum a President can serve is two terms, but the Brazilian people recently elected da Silva's chosen successor, Dilma Rousseff, who is expected to keep going on the same path as da Silva.

‘One of his most successful housing projects is the Minha Casa Minha Vida project, which provides financial incentives and assistance to low income families in order that they can afford to buy a house,' explained McKenzie.

‘But the biggest help was his decisive and excellent economic management. The way Brazil's powerful growth has been reinvested and managed to provide the maximum number of jobs has led to some 20 million people coming out of poverty. And the number of Brazilians classified as middle class increased by 29 million during the period. This massive growth in affluence is why there is so much demand for housing,' McKenzie added.

Source: www.propertywire.com

Brazil's new President welcomed by property market

Catherine Deshayes — 14/11/2010 19:41:00

The election of Dilma Rousseff as the first female president of Brazil has been widely welcomed by the country's growing real estate market...

Industry professionals believe that she will push on with reforms and incentives when she takes office in January 2011 which will see the Brazilian property market continue to prosper.

‘With the election of Rousseff, the Brazilian property market has at least another ten years of growth. The Workers Party government was the best thing that could have happened in the history of construction in the country since it was the only ruling party that has created real incentives for the industry,' said Flavio Cabrera of Lopes Real Estate Consultants, in Porto Alegre and Rio Grande do Sul.

Major programmes such as Minha Casa, Minha Vida, ‘My House, My Life', as well as other infrastructural programmes such as the Programa de Aceleração do Crescimento, ‘Programme of Accelerated Growth' are aimed at encouraging home ownership. ‘It is certain that the scope of these programmes will continue to grow and assist the real estate market in a major way,' added Cabrera.

A positive sign was that the real estate market remained strong throughout the election build up which doesn't usually happen, according to Tânia Amorim of the Tânia Amorim Real Estate Consultancy in São Paulo.

‘We specialise in commercial and industrial real estate and we have been finding that, in 2010, there are more buyers than sellers which is due to the fact that São Paulo is the biggest economic city of a country that is witnessing rapid growth, hence the increased demand. Our quarter three sales statistics are 42% higher than that of the same period in 2009, a trend which we expect to continue,' she added.

Samantha Gore, sales manager for Brazil estate agents uv10 pointed out that serious overseas property investors are always concerned about the health of a nation, both politically and economically, and a general election can be a turning point for better or worse.

‘Truthfully, the best outcome for Brazil would have been the re-election of da Silva. The charismatic President had an all time high job approval rate of 83% in October thanks to record low unemployment and a booming economy. However, according to Brazil's Constitution, da Silva was ineligible having reached his limit of two successive four year terms in office. Rousseff is the next best alternative. As da Silva's former Chief of Staff and his self anointed successor, she is unlikely to divert from current government policy,' she explained.

‘Certainly things could not be rosier for Brazil in 2010. Recent social policies such as Minha Casa Minha Vida, the low income housing scheme, and Bolsa Familiar, the anti-poverty scheme, have helped pull 20 million Brazilians out of poverty and shifted another 29 million into a rapidly growing middle class. Meanwhile Brazil's GDP is outperforming the predictions of the global experts surging by 9% year on year, its fastest growth rate in around 14 years,' she added.

Indeed, the arrival of Dilma Rousseff is unlikely to cause any major changes in the growth trajectory of the housing market, according to Ruban Selvanayagam, of the Brazil real estate & Land Investment Guide.

But even if Rousseff didn't get elected growth would not have stopped, according to Roberto Pimenta of Patrimovel real estate in Rio de Janeiro. ‘I don't think there is one person that is not confident about the housing market here in Rio. Credit is easier to obtain, prices are still reasonable and our local economy is looking its strongest in a long time particularly as we look forward to the World Cup, Olympic Games and several other international events. Supply does also remain a major issue still and therefore there is still much room for the market to rise,' he explained.

Source: www.propertywire.com

Brazilian property unaffected by election

Catherine Deshayes — 08/11/2010 19:57:00

Property investors looking to buy real estate in Brazil are likely to be encouraged by news that the country's housing market will remain unaffected by the result of the recent presidential election...

Indeed, in excess of 135 million Brazilians went to the polls to elect Dilma Rousseff as successor to Luiz Inacio Lula da Silva, who was constitutionally not allowed to stand for a third term.  Felipe Cavalcante, president of ADIT Brasil - the association for real estate and tourism development - confirmed that the market would continue to perform irrespective of the result.  "The Brazil real estate market scenario is quite positive. Irrespective of who wins ... Brazil's economic growth and stability will continue," he said.  "In relation to the Brazilian property market, the Minha Casa Minha Vida federal programme and the civil construction boom will carry on."  

Meanwhile, according to specialist agent uv10.com, Brazil offers investors a platform for "excellent growth", but the strategy has to be right before buyers part with their money.

Source: www.propertyshowrooms.com

Regeneration to change Rio's property market

Catherine Deshayes — 05/11/2010 11:23:00

The regeneration of some of the less well known parts of Brazil's second largest city is set to change the face of its real estate market, it is claimed...

Bidding is to begin for what amounts to a modern facelift for parts of Rio de Janeiro which the Brazilian Institute of Architecture has described as an historic step.

Called Morar Carioca, it will see R$8 billion poured into improvements in infrastructure and the modernisation of housing by 2020 in the metropolitan regions of the city including communities within Copacabana, Leblon and Maracanã.

‘The programme marks a historic step for the future of the city and looks certain to change the face of the property market for the better,' said Sonia Lopes, project co-ordinator.

Brazil's leading architectural companies and construction specialists will be undertaking significant housing reformation projects including building new properties and a range of infrastructural works such as new schools, health centres and transport amenities.

Real estate professionals believe that the refurbishment will have a knock on effect on property prices both in the areas where the work is to be done and in surrounding areas which will benefit from the ‘gentrification' of the areas.

According to Fabricio Negri, an independent real estate broker some parts of Rio have already benefitted from the so-called Olympic effect with prices doubling in just 12 months. For example an apartment sold in the Copacabana region for R$140,000 in September 2009 was recently put back on the market with an asking price of R$ 285,000.

‘There are some parts of Copacabana where prices are very low. It is certain that the prices of these properties will catch up as a result of ‘Morar Carioca' and I am already beginning to see increased interest,' said senior broker Roberto Pimento.

According to a study currently being undertaken by the Brazil real estate & Land Investment Guide, rental figures have also witnessed a rapid increase, which have been attributed to what remains a significantly undersupplied market in terms of new properties.

‘People are struggling to find good rental accommodation, particularly close to the beaches in the south zone such as Copacabana, Leblon and Ipanema, property owners have therefore upped their rates which are often doubled at Christmas, New Year and during the annual carnival in February,' explained Ruban Selvanayagam.

The study indicates that a two bedroom 50 square meter apartment in Leblon, the wealthiest part of the city, could see a rental increase of over 40% at the start of November due to the influx of summer tourists from R$ 2,700 to R$ 3,800.

Source: www.propertywire.com

Brazil: investor's paradise?

Catherine Deshayes — 18/10/2010 07:28:00

Brazil is set to become a major tourist destination and a property investors "paradise", one industry specialist has suggested...  

According to FDI Overseas Property, recent development in the country teamed with its strong economic growth has meant that it is now able to offer potential investors a healthy return.  To this end, the specialists added that the continued growth of the Brazilian property market, in the region of 20 per cent year-on-year, was sure to make the country an attractive proposition for international buyers.

"Brazil now offers the astute investor the perfect opportunity to enter at the early stages of the market, before prices start to reflect its growing status as one of the world's most promising economies and tourist destinations," FDI Overseas Property explained.  

Added to this, the country is set to host both the 2014 football World Cup and the 2016 Olympic Games, both of which are likely to increase tourism to Brazil, as well as worldwide exposure as a holiday destination.

Source: www.propertyshowrooms.com

Brazil doubles tax on foreign investors

Steph Engall — 06/10/2010 14:07:00

Brazil has doubled the tax on foreign investors buying local bonds or making deposits in fixed returns...

As emerging economies globally struggle to cope with hot investment inflows that have pushed up their currencies, Finance Minister Guido Mantega said the so-called IOF (financial operations tax) will rise to 4% from 2% starting Tuesday. However the measure does not include risk capital (i.e. stock exchange) and foreign direct (productive) investments.

Finance ministers and central bankers are expected to focus on what Mantega has called an "international currency war" at an International Monetary Fund meeting in Washington this week.

With Brazilian interest rates among the world's highest at 10.75%, foreign investors are pouring cash into the country in search of steep returns.

"There's growing interest from foreign investors in Brazil and this latest decision is geared to avoid the appreciation of the Real and harm to our exports", said Mantega. "We are concerned that a steep increase in the value of the Real hampers exports and floods the domestic market with cheap prices".

Since the second half of 2009 the Brazilian government has been assessing "additional complementary measures" given the "excess" of US dollars in the market which trigger complaints from exporters because of loss of competitiveness.

Since Lula da Silva took office in 2002 the Brazilian currency has appreciated 108.84% against the US dollar, from 3.53 to the current 1.69.

Source: Merco Press

Spain, France and Italy join forces to attract emerging markets

Steph Engall — 28/09/2010 15:15:00

Europe's top three holiday destinations have teamed together in the hope of drawing tourists from emerging markets: Brazil, China and India...

"The goal is to improve the positioning of the nations of the Mediterranean Arc in distant markets where promoting Spain, France or Italy on their own is more complicated," Spain's tourism ministry said in a statement.

Under the agreement signed in Brussels, the three nations will jointly produce fliers and other promotional material for the three emerging markets that highlight their cultural attractions, food and shopping opportunities.

They will also organise promotional visits for journalists and tour operators from Brazil, China and India beginning later this year to boost awareness of their attractions in these countries.

Brazil, China, India and Russia, the so-called BRIC countries, are the world's top four emerging markets.

The four nations, which represent 40 percent of the world population, accounted for about half of global growth between 2000 and 2008 and will account for 61 percent global gross domestic product growth in 2014, according to the International Monetary Fund.

Source: AFP

Brazil's slums become tourist attraction

Catherine Deshayes — 06/09/2010 07:41:00

Tourists used to try to avoid Rio's notorious slums. Now officials are inviting them to come and visit instead...

The Santa Marta shantytown has become the first community in a programme meant to promote tourism in the poor neighbourhoods that are home to some unique music and art work.

The programme, "Rio Top Tour: Rio de Janeiro in a Different Perspective," also rewards communities like Santa Marta that have been cleared of the violent drug gangs that have long made Rio's crowded hillsides famously dangerous.

Slum residents will be trained to work as tourist guides, and street signs in English will be posted throughout the shantytown of some 5000 people.

The area will have about 30 attractions such as the place where Michael Jackson filmed a video, a samba school and works of local artists, as well as a vista point with a breathtaking view of the city.

"Rio won't be known only for the Christ the Redeemer statue, the Sugar Loaf Mountain or the Copacabana and Ipanema beaches," Brazil's Tourism Minister Luiz Barreto said.

The programme, created by federal and state authorities, includes a marketing campaign and information booths posted in more traditional tourist spots.

President Luiz Inacio Lula da Silva visited Santa Marta to officially launch the initiative, and said he intends to spread it to other poor communities in Rio and across Brazil.

Source: AP

Investment Agency created to promote Brazil property

Catherine Deshayes — 03/09/2010 12:42:00

ADIT Brasil, the investors' gateway to real estate and tourism development in Brazil, has created an Investment Agency focused on presenting real estate projects correctly to overcome the obstacles of doing business between Brazil and the rest of the world...

The aim is to give Brazilian real estate projects the chance to overcome language problems and present investment opportunities to foreign buyers in a more user friendly way.

‘Brazilian business owners, especially small and medium sized, have not yet mastered the language of the international financial markets. Sometimes communication is a barrier and sometimes the projects they present lack an adequate format or the basic necessary information for investors to make a decision,' said Luiz Lessa, CIO of ADIT's Investment Agency.

‘The ADIT Investment Agency has been created to make projects viable for the international investor. It aims to prospect the best available investment opportunities on the national scene. Brazilian companies can use ADIT's network and extensive experience of the market and its complexities to prepare their projects in a form acceptable to attract foreign capital,' he explained.

Members, Associates and non-members of ADIT are eligible to apply for the Investment Agency treatment. The IA examines each application and if chosen those project proposals will be analyzed using technical and market criteria such as return rates, viable usage and legal issues. The IA then creates a structure that not only prepares all the necessary information, but also conducts negotiations and leads them to deals.

Projects already in the IA portfolio include an urban hotels project in Recife, Pernambuco, social housing in Rio de Janeiro, a master plan community in Natal, Rio Grande de Norte, and a second home condominium development in Ceará. The aim is to unveil them to a select audience of potential investors through road shows in London, Spain and the US during October and November 2010. The intention of ADIT is to spread its service further into Europe, North America, the Middle East and Arab investment markets.

ADIT Brasil is now a national Association covering the whole of Brazil and not just the Northeast region. ADIT's main office is in Macéio in the state of Alagoas but it has located its Investment Agency headquarters in Sao Paulo.

‘Sao Paulo is the first port of call for the national and international institutional investment markets. Most businesses are directly or indirectly linked to Sao Paulo on a day to day basis,' said Lessa.

Source: www.propertywire.com

Brazil 'offers potential for investors'

Catherine Deshayes — 26/08/2010 07:39:00

People looking for property in Mato Grosso will be pleased to hear that one expert has said Brazil offers lots of potential to investors...

According to Les Calvert, director of Property Abroad, countries which are showing good economic growth are ripe for investment, Brazil among them.  "For investment purposes, it is a growing economy, prices are still reasonable and there is definitely a market there for Brazil," he stated.  

Mr Calvert added that there is also a lot of investment potential in Europe, however, it can sometimes be difficult to "cherry pick" the right properties.  

Mr Calvert's comments came after research from the Worldwide Property Group found that 80 per cent of people surveyed in the 45-54 age group are currently considering buying property abroad.  

The research also found that confidence in property as an investment is currently strong, as it is thought to offer greater stability than other investment options such as stocks and shares. 

Source: www.propertyshowrooms.com

Brazil: getting hotter by the second

Catherine Deshayes — 04/08/2010 07:17:00

Brazil is seeing a shift from lifestyle property buying to investors seeking a purchase that it likely to rise in value as the country hosts the football world cup in 2014 and the Olympics in 2016, it is claimed...

Once the secret of a select few adventurous holiday home buyers attracted by the year round sunshine, deserted beaches and party atmosphere, Brazil is now topping the list for serious property investors who wish to cash in on the boom, according to Brazil real estate specialists uv10.

‘Initially our client base was rather lifestyle heavy, but we're now handling more and more pure investors. They can envision the impact of the 2014 FIFA World Cup and the 2016 Rio Olympics, not to mention the burgeoning middle classes and the recent introduction of mortgages for Brazilians,' said uv10 sales manager Samantha Gore.

‘We're here to advise on the best areas to invest in at any given time and right now land values in parts of Brazil are soaring. With available plots starting from 54,705 Brazilian Reais, around £20,000, for a little over 500 square meters they represent excellent value,' she added.

The Brazilian government is also putting more effort into attracting foreign real estate investors. ADIT, the Association for inward investment in real estate and tourism, has announced that it is widening its influence to cover the 27 states of the whole of Brazil and not just the nine states of the Northeast region.

As a result is name has been changed from ADIT Nordeste to ADIT Brasil and it will also broaden its fields of activity to include residential and commercial property based investments, hospitality, real estate tourism and logistics.

The organisation will also strengthen its presence in the environmental sector, with the aim of creating legal security to advance real estate and tourism developments across the country.

The announcement comes exactly four years after the Government funded Association was founded. It was formed in June 2006 in order to drive forward the Northeast's tourism and real estate development. Before then, there was no official body representing the interests of these sectors.

ADIT Brasil attracts foreign direct investment in land and real estate projects by introducing the most reputable Brazilian developers, architects, lawyers and related businesses to international investors including hoteliers and resort groups and encouraging the formation of working partnerships.

The association holds an annual conference, exhibition and business networking event called Brasil Invest (formerly known as Nordeste Invest). The event has become a milestone in the industry. Its fifth conference in May 2010 in Natal it attracted more international investors than ever before. Some 120 foreign investors attended and met with Brazilian companies in the real estate and tourism sectors, with parties agreeing an anticipated R$ 1.8 billion of business.

Source: www.propertywire.com

Emerging commercial markets 'strongest'

Catherine Deshayes — 30/07/2010 10:50:00

Commercial real estate in emerging economies has outperformed the Euro zone and the UK in the second quarter of 2010, according to the latest figures...

Property markets in the more dynamic economies of South America, Asia and Eastern Europe are seeing increasing demand says the Global Property Survey from the Royal Institution of Chartered Surveyors.

Occupier demand is rising in the majority of countries across the globe with the notable exception of the UK and euro zone countries where the tough measures that have been taken to reduce fiscal deficits appear to be having a more pronounced impact on the appetite of businesses to take up new space.

But France is bucking the negative euro zone trend with more material signs of an upturn in sentiment towards real estate reflecting, in part, the relatively resilient performance from the domestic economy, the report says.

Significantly, surveyors in the US reported a rise in tenant demand across all three sectors for the first time in three years, it adds.

Brazil is leading the way with the net balance of surveyors reporting a rise in occupier demand increasing from 70% to 85% with markets in Peru and China also performing well.

In contrast, demand in the UK turned negative for the first time in a year with the net balance falling from a positive 14% to a negative 4% while the net balances in Spain, Germany and Greece are all in negative territory.

Transactions fell in the UK for the first time in a year with the net balance of surveyors reporting a fall in activity sliding from a positive 24% to a negative 5%. More surveyors again reported a drop than a rise in activity in the United Arab Emirates and Greece.

Indicators in China still remain strong despite measures introduced by the Chinese government to address the property boom. Indicators for occupier demand, rental expectations and the number of investment bidders per property all remain firmly in positive territory. Elsewhere in Asia, the latest numbers from India suggest a strong showing from real estate in the second quarter despite the increase in interest rates.

Looking forward into the third quarter of 2010, sentiment towards capital values is particularly strong in France, Peru and Brazil while surveyors are most optimistic on rental increases in Brazil, Hong Kong and Peru, the report adds.

The research also shows that new development starts are rising in Brazil, Peru and Argentina. Surveyors report the first decline in Japanese yields since 2007, investment bidders per property rose at a faster pace in the US and capital values are still declining in Ireland, Spain and Greece.

‘The real estate world continues to be split broadly speaking between the emerging and developed economies. Strong growth in many of the former, including the likes of Brazil, Hong Kong and India, is continuing to boost demand for new space from occupiers as well as encouraging investment activity. Meanwhile in many of the latter, fiscal retrenchment allied to bank deleveraging continues to place significant obstacles in the way of a meaningful recovery in the commercial property market,' said RICS chief economist Simon Rubinsohn.

Source: www.propertywire.com

Brazil leads global commercial growth

Catherine Deshayes — 29/07/2010 07:34:00

Global commercial real estate markets have seen a solid progression as volumes reach US66 billion in the second quarter of 2010 with the strongest growth in Brazil, the latest figures show...

While this level is similar to the first quarter 2010, it nearly doubles the levels of the market bottom of one year ago, according to new research from international property consultants Jones Lang LaSalle.

Its global capital markets research shows that in the first half of 2010 global direct commercial real estate investment volumes totalled US$130 billion. The Americas saw an increase of 54%, EMEA was up 15%, but Asia Pacific dropped 34% quarter on quarter.

‘This is solid progress for commercial real estate investment markets, reflecting the pick up in trading which we have witnessed in certain countries globally. That said, volumes are still well below pre-credit crisis levels and since third quarter 2009 incremental growth has been relatively modest,' said Arthur de Haast, head of the International Capital Group (ICG) at Jones Lang LaSalle.

Looking ahead he said that the firm anticipates volumes globally of around US$300 billion, which represents a healthy 40 to 50% increase on 2009. ‘This is still less than half the pre-credit crisis levels of 2006 and 2007, but we must take into account the fact that those were heady years for commercial real estate investment, with unprecedented record trading volumes,' he added.

Significant regional differences have emerged in the second quarter of the year. Most notably Asia Pacific has seen a 34% quarter on quarter decline in investment volumes to US$15 billion, with sizeable falls registered in Japan, China and Australia, while Hong Kong and Taiwan saw an increase. Compared to the same quarter last year, volumes were up by 21% from US$13 billion during the same period in 2009.

‘In Asia Pacific, the first half of 2010 has posted reasonably strong increases over the corresponding periods of 2009. If this trend continues, aggregate volumes could be around 30% higher this year to reach the mid US$80 billon range,' said Stuart Crow, head of the firm's Asia Capital Markets Group.

In Europe, Middle East and Africa (EMEA) the second quarter has seen a modest 15% increase in volumes on the first quarter to €23 billion, which is up 80% on a year ago. In US dollar terms, volumes totalled US$29 billion, up 5% on the quarter and 70% over 2009.

The UK accounts for over 40% of EMEA volumes, while London maintains its position as the world's most active market with volumes close to US$5 billion, though investors are increasingly focusing on France, Germany, the Nordics and Poland.

In EMEA, Jones Lang LaSalle expects investment volumes will be 35% higher in 2010 compared to 2009, reaching the €100 billion, around US$130 billion, mark by the end of then year.

‘We have seen a strong bounce back in activity and pricing so far this year especially for prime London. However, in the last few weeks I have noticed a slight change in sentiment and the balance between buyers and sellers has altered. I expect yield movement to be minimal for the next few months and turnover in England to be slightly ahead of 2009,' said Julian Stocks, head of Capital Markets England at Jones Lang LaSalle.

The Americas have seen a sharp uplift in volumes in the second quarter, but from a low base. Volumes have risen by 54% to US$ 21 billion on the first quarter and are more than quadruple the $5 billion level of the same period in 2009. Quarter over quarter growth in Canada and Brazil outstripped the United States.

‘Globally, the strongest growth has been recorded in Brazil, where volumes have tripled on the first quarter to US$1.6 billion and are now at record levels. Canada has also seen strong improvement on the quarter doubling to US$3.5 billion,' said Steve Collins, head of the ICG in the Americas.

He expects total transaction volume in the Americas region for the full year 2010 to increase by at least 80% over 2009 and reach the US$80 to 85 billion range.

Source: www.propertywire.com

Brazil gets tough on flight delays

Catherine Deshayes — 17/06/2010 11:39:00

Brazil has tightened rules on flight delays to make it quicker for stranded passengers to get free food, lodging, telephone and Internet access, as well as reimbursements from airlines, local media said...

The National Civil Aviation Agency (ANAC) also established fines for airlines that fail to comply with the new rules, ranging from 555 dollars to 1,800 dollars for each case.

The new regulations mandate immediate fare reimbursement when flights are either cancelled or delayed more than four hours. Previous rules gave airlines up to 30 days to pay up.

The time airlines have to provide passenger assistance in case of delays has also been shortened from four hours to one hour for free telephone and Internet access, two hours for free meals, and four hours (unchanged) for free transport and lodging.

In case of flight cancellations, passengers under the new rules have the right to wait for the next available flight on the airline they're booked on or choose to fly with a different airline.

Airlines are also banned from overbooking when flights are delayed or canceled until all stranded passengers are reassigned to their new seats, Agencia Brazil said.

Source: www.theage.com.au

World's biggest gay parade kicks off

Catherine Deshayes — 08/06/2010 10:48:00

Homosexuals and their supporters have filled the main avenue in Sao Paulo, Brazil, for an annual Gay Parade that organisers claim is the biggest in the world with an estimated three million participants...

The colourful procession took place on Sunday under a bright blue sky, with floats blaring techno music bedecked with gym-hard bodies in swimsuits and dancing transvestites.

Organisers this year sought to place the gay agenda in political campaigns for Brazilian presidential elections in October by promoting the theme "Vote against homophobia".

Gay rights groups say although Brazil is a relatively open society in terms of homosexuality, 198 gays were killed last year in homophobic attacks.

The gay pride association running the parade said that since it started in 1997, the event has become the biggest gay parade in the world, outdoing celebrations in San Francisco and Sydney.

The Sao Paulo parade is financed by the state government with sponsorship from Brazil's state-run oil company Petrobras.

Source: AFP

Savvy investors eye South America

Catherine Deshayes — 10/03/2010 09:48:00

Brazil and Argentina are currently property investment hotspots, claims one overseas property expert.

According to Worldwide Investments spokesperson, Anna Thompson, investors would do well to consider developing economies for growth opportunities as opposed to traditional markets. She explained: "South American economies are especially developing well by comparison to mature economies in Europe. What's more, countries such as Brazil and Argentina offer particular opportunities in land investments on top of property investments."

Brazil is already established as one of the leading emerging markets. According to Mrs. Thompson, "South America is currently a popular property investment hotspot, and Brazil is no exception. Fantastic beaches, exceptional culture, and host for the football World Cup in 2014, there are plenty of reasons to want property in Brazil."

Mrs. Thompson says that Worldwide Investments are especially recommending clients look to Argentina, "We believe that for purely investment purposes it is worth analysing Argentina. Argentina has long been an investment hotspot for some of the world's wealthiest people. It has some of the world's most fertile land and an abundance of natural resources.

"Many billionaires own real estate in thriving Buenos Aires or in the beautiful Patagonia region. Savvy investors are coming to realise that Argentina has a lot to offer." Find out more: Investment property in Argentina and agricultural land for sale.

Source: www.worldwideinvestments.co.uk

Middle-class boost for Brazil

Catherine Deshayes — 02/03/2010 02:05:00

Brazil's burgeoning middle-class has set its sights on moving up the country's property ladder, it has been revealed.

In 2003, Brazil's Middle Class (Class C) numbered 64 million people. Today this figure has risen to a mammoth 91 million earning a substantial 46% of the total Brazilian yearly income. Everything from credit card applications to satellite TV subscriptions is accelerating to match - and next on the list for Brazil's Class C are stylish homes.

Samantha Gore, Sales & Marketing Manager for Brazil real estate specialists www.uv10.com, comments: "Brazil's burgeoning Middle Class is highly aspirational and a suburban home offering an improved quality of life is high on the list. Trouble is there is a supply shortage in this price bracket which developers are now racing to fill.

"One option is Sonhos do Mar, a ten-minute commute to Natal city centre. Here three bedroom villas can be bought under market value to resell to the local market or be rented out with an optional four-year guaranteed income. It's a very popular and profitable way to invest in the strong Brazilian property market."

uv10.com

Brazil Carnival: winners

Catherine Deshayes — 18/02/2010 10:54:00

Brazil's Carnival revelry drew to a close yesterday with the anxiously awaited award for the best parade in Rio de Janeiro going to a show featuring skiers dressed like Batman and a pregnant drum queen..

The Unidos da Tijuca samba group won the battle for Rio bragging rights for the first time in 74 years for their parade entitled "It's a Secret!" that also featured rapid-fire costume changes and a dancing impersonator of the late pop singer Michael Jackson.

Its drum section was led by a four-month pregnant television presenter, Adriane Galisteu.

The Viradouro group, which whipped up controversy by selecting a seven-year-old as its drum queen, finished last and was relegated to the second division. Rio's samba schools are organized into two separate divisions.

Each year 12 samba "schools" of samba parade elaborate sparkling costumes, props and extravagant floats. Judges' marks for the parades are painstakingly read out for over an hour on national television on Ash Wednesday.

The schools, which provide an annual coming-out for many of Rio's most impoverished slum areas, often have skit-like elements, making the overall experience a cross between Disney World and an Italian opera.

"It's a spectacle that has a lot of culture, a lot of history and a bit of theater. I get goose bumps, it's a very strong, very nice feeling," said Amanda Souza, 24, as she waited for a parade at Rio's Sambadrome stadium Sunday night.

PARTYING TO LAST MINUTE

Rio street parties, or "blocos," as they are known in the city, continued on Wednesday as revelers partied up until the vote. With names like "Christ's Arm Pits" and "Don't Move Because It Stinks," they have increased in popularity in recent years as an alternative to the scripted parades.

Although near-naked women in tiny bikinis have become the iconic image of Rio's Carnival, exposed flesh is a small aspect of the elaborate displays that provide thousands of people with work and happiness each year.

"Without Carnival, I don't think I could live." said Luiz Paulo, 22, as he waited to parade.

The samba songs that accompany each parade speak of social issues, national heroes and important moments in Brazilian or world history.

A school this year honored the 50th anniversary of the founding of Brasilia, the nation's capital. The blue-and-white Beija Flor school launched the parade with a float of Brasilia's iconic cathedral and sang "Brasilia: the capital of hope."

Another group opened its pink-and-green parade with a mock confrontation between police and prisoners to show how music -- its theme this year -- was a liberating force for the country during its 1964-1985 military dictatorship.

A spectator said the Carnival helps her to overcome some fears in a city that suffers from frequent violence and confrontations between the police and drug-traffickers.

"We forget our problems. We get courage to walk on the streets," said Inaura dos Santos Martins, 58, who attends the annual event at the Sambadrome.

Source: Reuters

Best Brazil beaches

Catherine Deshayes — 29/01/2010 10:36:00

Lucky old Margaret Summerfield - as a scout for Pathfinder, she has spent the best part of this year exploring South American beaches; beginning with Uruguay and Argentina, and ending with a few months in Brazil - here she tells TheMoveChannel.com the top three pics for retirement or buying a second home...

Third place: Leblon, Rio de Janeiro

Brazil has almost 5,000 miles of beautiful coastline and I couldn't write about the country's top beaches without mentioning Rio de Janeiro...it's world-famous for its city beaches.

And Rio is also Brazil's most beautiful city. Green forested mountains sweep down to the ocean, with a wide fringe of white sand in between. Rocky outcrops stud the bay, along with some private islands that are home to the ultra-wealthy. Rio is lush and verdant, with two huge parks. The iconic Sugar Loaf Mountain and the enormous Christ the Redeemer statue watch over the city beneath them.

Rio is Brazil's top tourist destination for foreigners, and that popularity is partly due to the city's partying reputation. From nightclubs to cultural attractions to gourmet restaurants, Rio has it all. Carnival is the biggest celebration, followed by the New Year's festivities on Copacabana Beach...both of which attract millions of people.

Then there are the beaches. While most visitors head for Copacabana or Ipanema, my personal choice is Leblon.

Leblon has the white-sand beach and blue Atlantic waters we associate with Rio's beaches, and it's popular with local families rather than tourists.

Beachfront apartments in Leblon often have multi-million pound price tags. One two-bed apartment off the beach, with ocean views from the balcony, was a more affordable £152,399, for 100 square meters. A smaller 70 square meter apartment with part-ocean view (and awesome mountain views) in the exclusive Alto Leblon neighbourhood was £131,336.

The weather in Rio de Janeiro is seasonal though, with a distinct winter. It's not warm enough to swim year-round. For that, you need to head to Brazil's northeast coast.

Second place: Cumbuco, Fortaleza

Cumbuco, thirty minutes west of Fortaleza on the northeast coast, is rapidly shedding its fishing village infrastructure and amenities. The town's laid-back friendly charm carries on, though.

The dazzling-white sand beach has a curve of coconut palms hugging the bay. Off shore, the brilliant blue sky meets the deep blue of the ocean. Fishermen cast their nets from their little jangadas (boats), and the beachside bars serve up the day's catch-you don't get much fresher than that.

Many of Fortaleza's wealthy families own large homes in Cumbuco, but recently, it's caught the attention of developers as well.

The first golf course in the area is due to start, as part of a major development by a Portuguese group. The hotel for this project-called Vila Gale-is under construction. Another development by a Spanish group will have almost 1000 residential units...and a Brazilian developer next door is planning 1400 units.

Lots in a gated community close to the beach in Cumbuco are available. Averaging 400 square meters (4306 square feet), the start price is 70,000 reals (£23,329). For something right on the sand, 250,728 reals (£83,561) buys you a 75 square meter (807 square feet) condo, currently under construction.

The first high-end boutique condo-hotel is due to open soon. This is a major upgrade in the village, as this luxury hotel will be in a class of its own in Cumbuco. Once the new residential developments and golf course are complete, this village will have a market for the chic restaurants and cafes that will surely follow.

For now, enjoy the nicest, widest stretch of sand close to Fortaleza, before the crowds get here.

First place: Coqueirinho, Paraíba

Driving along the section of coast south of João Pessoa, you'll find an abundance of secluded, pristine beaches. This is where I discovered my #1 pick, Coqueirinho. It has year-round warmth, white-sand, sparkling water...and an added touch of luxury.

At Coqueirinho, coloured cliffs backdrop an open-air beachside restaurant, the perfect place for an alfresco lunch. We shared a tasty selection of appetizers and fresh-cooked fish, while we relaxed in the tranquil setting.

A 600 square meter (6458 square feet) lot beside the beach had an asking price of 320,000 reals (£106,651). It was the only beachfront property we could find, despite an extensive search. There is one condo development planned that I know of, which I'll keep you updated on.

Set back from the beach, on a hill, is a residential gated community, with 400 square meter lots (4306 square feet) from 88,000 reals (£29,329). The lots have ocean and forest views, and the master plan includes a swimming pool and sports facilities. Building costs run around 1400 reals (£466.60) per square meter, so a 225 square meter house (2422 square feet) would cost 315,000 reals (£104,982) to build.

The beach here isn't crowded, with plenty of space for stretching out and sunbathing. What makes Coqueirinho beach perfect is the cosmopolitan touch of tented massage tables and spa treatments on the beach itself...plush day beds...and cool world music in the background.

This touch of luxury gives Coqueirinho the edge for me, creating such a serene atmosphere that you can't help but relax...and it's why this beach makes my top spot.

Picture of Cumbuco by Margaret Summerfield

Investment cash is king once more

Catherine Deshayes — 28/01/2010 10:55:00

Investor activity rose across 70% of the Globe as commercial property recovered as an asset class with Brazil and China leading the way, according to a new report...

The Global Commercial Property Survey from the Royal Institution of Chartered Surveyors shows that due to generally low interest rates and relatively high yields investors have returned to commercial property.

The net balance of surveyors reporting a rise in transactions in Brazil rose from 29% to 61% in the fourth quarter of 2009 while the net balance in China edged up to 58% from 47%.

But some countries are not doing as well. More surveyors again reported a drop in activity in the US

Overall the report shows that occupier demand has been most visible across the emerging economies with lettings activity picking up most in Latin America, emerging Europe and most of Asia.

It also shows that the UK property recovery was led by the London office market, with the amount of available space declining for the first time in two years. However, elsewhere in the UK and across 90% of the globe, the amount of available space continued to rise. There were some notable exceptions. Brazil, Peru, Venezuela, Austria, Hong Kong and Ghana are all witnessing mild declines, the report indicates.

However, surveyors are confident that the emerging economies, particularly in Latin America and Asia, will continue to lead the property recovery into the first quarter of 2010 but concerns persist over the outlook for some of the more developed real estate markets such as the US, Japan, Germany, Italy and the United Arab Emirates.

‘'The latest Global Commercial Property Survey demonstrates in the clearest possible terms that it is emerging real estate markets where sentiment has turned around most significantly. Crucially, the improvement in investor appetite is being accompanied by a firmer tone to the rental market. This is key to ensuring that the recovery proves sustainable,' said RICS chief economist Simon Rubinsohn.

‘The strength of the results contained in the survey for Latin America and Asia are a reflection of the unfolding economic recovery with many of the more developed markets likely to be hampered by the challenges resulting from the ballooning of public sector debt and need of the authorities to gradually exit from emergency monetary conditions,' he added.

Source: www.propertywire.com

Huge investment in S. America

Catherine Deshayes — 26/01/2010 11:46:00

Carlyle Group, the world's second- largest private-equity firm, may invest as much as $1.5 billion in South America in the next five years after making its first buyout deal in Brazil...

Carlyle, seeking to take advantage of Brazil's economic growth, is in talks to buy two more companies in the country, Daniel Sterenberg, a senior associate at the firm, said in a telephone interview from Sao Paulo. The company announced today the purchase of a majority stake in CVC Brasil Operadora e Agencia de Viagens SA, Latin America's largest tour operator.

"We are looking into companies linked to consumption, which will benefit the most from Brazil's growing economy," said Sterenberg, who led the negotiations to buy CVC. The talks with the two companies are preliminary, he said.

Carlyle plans to invest at least 80 percent of the $1.5 billion, which includes the acquisition of CVC, in Brazil, said Sterenberg. The firm didn't disclose what it paid for CVC.

David Rubenstein, co-founder of Washington-based Carlyle, said last month the company planned two or three acquisitions in the "mid-$100 million" range in Brazil, part of a strategy to benefit from the size and growth potential of Latin America's biggest economy.

Plans for CVC

CVC may sell shares in a public offering within the next two years and Carlyle plans to keep its stake in CVC for four to six years, Sterenberg said.

"CVC is already big enough for an IPO," he said.

The private-equity firm bought the 63.6 percent stake in CVC from founder Guilherme Paulus, who will remain chairman and hold a minority share of the firm, according to an e-mailed statement. Paulus will retain control of the airline WebJet, the hotel management company GJP and advertising agency GP7.

Among the first moves Carlyle will make is to help CVC hire a new chief financial officer, Sterenberg said.

CVC, based in the suburbs of Sao Paulo, was founded by Paulus and Carlos Vicente Cerchiari in 1972, according to its Web site. The company sells everything from international package tours to trips to resorts within Brazil to more than two million passengers a year, the statement said.

Carlyle paid about 700 million reais ($404 million) for the stake, O Estado de S. Paulo reported today, citing unidentified people close to the talks.

Source: www.bloomberg.com

Brazil's dark, exotic heart

Catherine Deshayes — 22/01/2010 10:53:00

Salvador is known as Brazil's Capital of Happiness, attracting visitors for its unique artistic, historical and cultural heritage - Pathfinder's Margaret Summerfield checks it out for TheMoveChannel.com...

Salvador offers you a glimpse of Brazil's dark, exotic heart. It's a unique place, and a contrast to Sao Paulo and Rio...a must-see on any travel itinerary. Moreover, if you are looking for a colonial property on a world-class beach, Salvador is the place for you.

Situated on the northeast coast of Brazil in the state of Bahia, Salvador was Brazil's first capital before Rio claimed the post in 1763. Formerly a centre for the sugar industry and slave trade, Salvador is now the centre of Afro-Brazilian culture. You'll notice the influence in the food, the music, and the candomblé religious ceremonies.

Salvador is the number two tourist destination in Brazil for Brazilians (after Fortaleza) and the number two destination for foreigners after Rio. Visitor numbers look set to increase-Salvador is a host city for the 2014 World Cup.

I stayed in a converted colonial building in Pelourinho, a small district that is home to some of Brazil's finest colonial properties.

Originally a wealthy city neighbourhood, Pelourinho's decline started in the 1920s. Owning a house in the suburbs became fashionable, and Salvador's wealthy families deserted Pelourinho. The once-grand buildings slipped into disrepair and decay. But a £60m renovation started in 1992, and today, Pelourinho stands proud. Admittedly, some no-go areas remain. My hotel provided me with a map, with the safe zone clearly highlighted for me.

I arrived on a Sunday, and witnessed Pelourinho in full flow. Steep hills framed the picture-perfect views to the ocean, while the pastel-collared historic buildings provided abundant photo opportunities.

Street vendors sold strange foods. Salvador's cuisine is a blend of African influences, using strongly flavoured palm oil, fish and shrimp paste. Brazilians as well as foreigners appreciate the food's spiciness and unique taste.

The noise of a street group drumming gave the city a singular and exotic vibe. Combined with the many museums dotting the district, it gives a culturally rich feel to the city. I got a schedule for the nightly entertainment of music, dancing and theatre performances, in order to make the most of my stay.

Rio may be famous for its Carnival-but so is Salvador. Carnival in Salvador is the biggest street party on the planet, lasting a week, with up to a million visitors joining the locals. There are three separate circuits, and the atmosphere is competitive fun. Handing the keys of the city to Rei Momo, the King of Carnival, officially launches the celebrations.

I'd rate Salvador's beaches highly. Flying into the city, you'll see a lush interior fringed with white sand and blue-green water. Porto da Barra, the best-known beach, was a hangout for musicians like Gilberto Gil in the 1960s. Farol de Barra, the site of Salvador's landmark lighthouse, is popular with families. North and south of Salvador lie island beaches, including Stella Maris, Flamengo, Tinhare and Boipeba. The island beaches are cleaner, less busy, and picture book perfect...sand, palm trees, and clear tropical ocean.

A house in an upscale neighbourhood fifteen minutes from Stella Maris beach had 174 square meters of space (1872 square feet) for 150,000 reals (£52,926). That's £304 per square meter. In the city itself, you can buy apartments one block back from the beach for 140-150,000 reals (£49,390-£52,926). That gets you 30-40 square meters, and sometimes an ocean view.

For more spacious living, there's an apartment in front of the lighthouse in Barra, with great ocean views. The 3-bed 2-bath unit has 121 square meters (1300 square feet), for 350,000 reals (£123,516). The location and layout make this apartment ideal for rental.

The city's status as a major tourist destination, and hosting the 2014 World Cup, should ensure a steady stream of renters for such apartments.

For me, though, the attraction of Salvador is the city's traditions, its culture and its vibe. It's very African-influenced, and very different from the rest of Brazil. The colonial buildings, the street performances, and the little museums offered an alternative to beach life (although I enjoyed the beaches too). In Brazil's northeast, such choice in cultural offerings is rare - and made me appreciate Salvador's charms that much more.

Check out homes for sale all over Brazil at http://brazil.themovechannel.com/

Picture by Margaret Summerfield

Travel agency under investigaton

Catherine Deshayes — 19/01/2010 12:06:00

A travel agency is under investigation after aspiring travellers, including a Curtin University student in Perth who was set for an adventure of a lifetime, claimed to have lost a total of $200,000 since booking travel arrangements with them...

Two days before Christmas, Sydel Michielsen thought she was headed for a dream trip having signed up with a volunteer organisation, Global Vision International (GVI), where she would spend five weeks on a marine conservation expedition in Mexico.

She paid $5000 for flights, accommodation and fees to Brasil Travel Specialist, who organised her trip.

She paid an additional $3900 to be a part of the GVI organisation where she would undertake environmental research, teach children English, experience deep sea diving and visit iconic landmarks such as the Mayan pyramids.

But all that went down the drain after Brasil Travel Specialist was shut down.

Glen Wells, chief executive of the Travel Compensation Fund, the travel industry body that protects customers against defaulting agents, said the fund shut down Brasil Travel Specialist after receiving $200,000 worth of claims.

"At this stage they have been terminated and we have paid out over $200,000 dealing with this organisation," he said.

"For them to maintain operation they have to meet financial criteria."

According to Mr Wells, early investigations suggested they couldn't account for consumer funds.

"We don't know the details of why they collapsed and we don't know where they are at this stage," he said.

Brasil Travel Specialist's phone has been disconnected and they have not replied to WAtoday.com.au's enquiries.

Having been extremely satisfied with previous travel arrangements organised by Brasil Travel Specialist, Ms Michielsen had no hesitation to use them again.

"Mum and I went to South America in 2005, she booked our tickets and they did an amazing job," Ms Michielsen said.

A friend of Ms Michielsen from Wollongong was also affected by the termination of the travel agency, which was based in NSW.

"Two days before Christmas we both got an email saying our travel agent had been terminated, my friend texted me saying thank goodness we have our tickets," she said.

"But I got curious so I rang and tried to do online check-in and my name didn't come up, so I called Qantas and they said no money had been paid to them.

"I paid $5000 to get flights, accommodation and transfers fees and Qantas said I had a spot on the airline but it hadn't been paid. My friend didn't even have a spot.

"We paid an extra $3900 to go on the (Global Vision International) expedition and they won't (refund us).

"I have to try and sell it to someone, anyone?"

GVI are not connected to Brasil Travel Specialist and are not suspected of any wrongdoing.

Other people may also have been affected, according to Ms Michielsen.

"Some people were stuck in Rio de Janeiro and couldn't get home for Christmas because their tickets weren't paid for," she said.

Although Ms Michielsen lost $3900, she was refunded $5000 through the Travel Compensation Fund.

Source: watoday.com.au

Brazil's retirement hotspot

Catherine Deshayes — 08/01/2010 10:53:00

Pathfinder's scout Margaret Summerfield has homed in on Brazil's top retirement destination-an overlooked but beautiful and affordable city in the northeast - warm and sunny year-round, it's ideal for health-conscious retirees. In Uruguay, Margaret's top pick was Punta del Este ... in Brazil, it's João Pessoa...

João Pessoa is the capital of the state of Paraíba. It's one of the oldest cities in Brazil's northeast, and home to 700,000 inhabitants. It's the most easterly point in Brazil, known as "The City Where The Sun Rises First".

The city has 1,730 acres of forest (7 square km), providing a green backdrop to almost 25 miles of beach (40 km). João Pessoa has some of the best city beaches I've seen. Moreover, beachfront properties are still affordable.

The crime rate in João Pessoa is the lowest of any state capital in Brazil, and I felt completely safe here. The city is clean, and has to rank as one of the most health-conscious places in Brazil.

I stayed in the Cabo Branco district, which sits on a beautiful curve of light sand, bordering a bay. The sand fringes a protected area of palms and greenery, which conceals the kiosks sitting on the adjacent boardwalk.

One attractive feature is height restrictions for buildings facing the boardwalk. Aside from a handful of older, higher buildings, the boardwalk is limited to three to five storeys. That gives the boardwalk and beach area a unique charm, as well as giving ocean views to taller buildings behind the boardwalk.

Social life in João Pessoa centres on the boardwalk, which runs for about 16 miles. The street beside the boardwalk closes to traffic from 5 to 8 AM, freeing the area for joggers and walkers. In the evenings, family groups gather, while teenagers rollerblade and couples stroll along, hand-in-hand. The kiosks serve drinks and snacks. Restaurants specialize in churrascaria (a mix of barbecued meats), fish, and Italian food.

On weekends, the beaches are busiest. In Cabo Branco, you don't get many vendors. You'll find them in Tambaú, the neighbouring section of beach, which is more touristy.

Despite a population of 700,000, the city feels like a small town. The locals are friendly. News travels fast here...

João Pessoa is a favoured retirement destination for Brazilians from São Paulo, Rio and other towns and cities in the northeast. Many professionals and former civil servants choose the comfort and safety of João Pessoa over their own hometowns. Many of these retirees are younger, and seeking a healthy lifestyle...and you can certainly find that in João Pessoa.

The sun rises just after 5 AM here, and the joggers and walkers head for the boardwalk. Local gyms are busy, too. Some kiosks on the boardwalk serve fruit salads, and coconut water, as well as fresh-squeezed fruit shakes with guaraná and açaí berry. The air in the city is reputedly some of the cleanest worldwide.

The pace of life is tranquil. Cabo Branco especially is quiet at night, while nearby Tambaú is more lively, attracting tourists and a younger crowd.

Apart from Brazilians, you'll find some Europeans (including British expats), but few Americans. It really is off the radar for Americans, and in fact, the few Americans I met had Brazilian partners.

Retirees from other Brazilian cities, and locals, drive the property market here.

I had my eye on one development in a prime boardwalk location in Cabo Branco. The property deed had not transferred to the developer-yet most of the units had already sold.

Despite the city's many advantages, property prices run around 3000-4000 reals per square meter on average (£1079 to £1439). Prime city boardwalk properties cost up to 5000 reals per meter (£1798). That's significantly less than other locations in Brazil, including Fortaleza, Recife, or Maceio.

The most exciting districts on the property market are Altiplano, and the beach areas of Cabo Branco and Bessa.

Bessa is not as developed as Cabo Branco, and some side streets are still packed sand. It attracts a mix of arty bohemians and middle-class professionals. New boutique hotels and luxury shops are springing up, along with high-end developments. The city's bigger hypermarkets and mega-malls are close to Bessa.

A pre-construction development in Bessa offers beachside apartments from 230,000 reals (£82,722) for a 65 square meter unit (700 square feet). These are true beachfront properties-there is no boardwalk, and you walk straight from the building onto the sand.

Altiplano is a residential neighbourhood with many high-end homes, and a cultural centre. The municipality of João Pessoa released tracts of land here for development in September 2009. There's an excitement about what the next five years will bring to Altiplano. There's talk of hotels, shopping malls, and private schools, as well as residential development.

I think Altiplano is shaping up to be a good area for investment, if you get in early. I'm following this area closely, and watching out for future developments, particularly beachfront and resort-style ones that would interest investors.

A very upscale project by a Swiss developer currently under construction offers 332 square meter (3572 square foot) apartments for 872,000 reals (£314,643). That gets you a whole floor to yourself, and some of the finest finishings in the city.

I was surprised at the size of apartments in João Pessoa. Around 250 square meters (2700 square feet) is common, and some developments offer 500 square meter (5380 square foot) apartments. There's a strong demand for these larger, luxury properties, costing up to a million reals (£359,682).

Retirees here don't downscale. They appreciate spacious surroundings, and enough room for family and friends. Investors and second homebuyers purchase the smaller apartments. I expect that will change with increasing numbers of retirees from overseas, who usually don't want the maintenance and care of such large apartments.

Comparing retirement destinations, João Pessoa's climate wins over that of Punta del Este in Uruguay. It's warm and sunny in João Pessoa year-round, while Punta del Este is seasonal. On the other hand, Punta del Este is more affordable, in terms of day-to-day living costs and property prices. You'd have to figure out which took priority for you, based on your budget and if you planned full-time or part-time living overseas. When it's winter in the northern hemisphere, it's summer in Punta del Este...so you could divide your time between your home country and Uruguay, and enjoy year-round sunshine.

But if you're searching for tranquillity, safety, a healthy retirement and year-round warm sunshine, you can put Brazil back on your list. Just make sure it's João Pessoa you head for.

Why don't you check out properties for sale in other parts of Brazil at http://brazil.themovechannel.com/

Margaret Summerfield has travelled extensively in Central and South America, scouting real estate opportunities for Pathfinder

Picture of Joao Pessoa by paulo78

Billionaire bets on Brazil

Catherine Deshayes — 07/01/2010 10:18:00

Real estate titan Sam Zell has just upped his ante with increased investments in Brazil. He paid $53 million for 8.5% of Brazilian Finance & Real Estate...

His total investments in Brazil now surpass $500 million. His company, Equity International invests in emerging markets across the world, but approximately one third of those investments have gone into Brazil. His group has invested in companies Gafisa and Tenda, both focused on residential contruction as well as BR Malls, one of the biggest builders of shopping centers in the country. He seems to have a sixth sense about when to buy and sell. His timing was impeccable when he sold Equity Office Properties to Blackstone for $39 billion. What year was that you ask? 2007! Yes, right before the collapse of real estate prices in the United States. Some acknowledge that there are good opportunities to invest in the United States, but that is not where his focus is. On the company's website they state, "Equity International is a privately held investment company focused exclusively on real estate-related businesses operating outside of the United States."

How did Zell get started? Most business tycoons on Forbes' list of billionaires have to start somewhere. Zell started out renting homes to students and friends at the University of Michigan while attending law school. He bought and sold distressed property during the crises in the 80s. He eventually owned over 225,000 properties throughout the United States. He was born to Jewish immigrants from Poland that moved to the United States right before the Nazi invasion in 1939.

According to different sources there is a housing deficit of somewhere in the neighborhood of 7-9 million homes in Brazil. This year the Brazilian Government lauched a program called Minha Casa, Mihna Vida (My House, My Life). It has plans to subsidize and finance the construstion of 1 million homes for poor and lower middle class families. Brazil historically has high interest rates, but in recent years rates has come down significantly to around 9%.

Real estate companies in Brazil are taking advantage of this growing market. Giants like Lopes and Brasil Brokers, two of the largest real estate brokerages in the country have seen accelerated growth in recent years. In 2007, Brasil Brokers raised money on the Brazilian stock exchange and has been growing through acquisitions. Headquartered in Rio de Janeiro, they currently operate in 15 states throughout Brazil. The real estate franchise model is not as prevelant in Brazil as the United States or Europe, but Century 21 recently set up shop in Sao Paulo and has goals of growing to 1000 offices in the next decade. Lopes, one of the oldest real estate companies in all of Brazil has been growing its profits at a fast pace. Lopes posted Pro-forma Net Income of R$17.5 million (~$10 million USD) in 3Q09, increasing by 61% over 2Q09 and by 66% in relation to 3Q08. The company recently signed an agreement with online real estate marketplace VivaReal, to begin commercializing new construction projects as well as properties listed by its franchise arm Pronto Imoveis. VivaReal is founded by Brian Requarth, Web entrepreneur from California. The company is focused on building the largest marketplace for buying and selling real estate in the country. Having launched in May 2009, they are off to a good start with a few hundred thousand home buyers using its site to find properties throughout Brazil on a monthly basis. VivaReal is going after the +$1 billion that is spent on real estate advertising in traditional media in Brazil each year. With increased investments in real estate and more internet users than Germany, the company has a lot of room to grow.

With the recent announcement that Brazil will host the Olympic games in 2016 coupled with the World Cup in 2014, all eyes are on this emerging country with incredible potential. Some have compared Brazil's current status right now to the United States in the 1950s. With a AAA rating from several major credit rating institutions and outstanding press from publications like The Economist, investors like Zell are counting on big returns in Brazil.

Source: www.latinworld.com

November Investment Property Watch

Catherine Deshayes — 22/12/2009 12:55:00

Whilst the USA reigned supreme in November's Investment Property watch chart - which tracks the level of interest in certain properties and countries from visitors to the site - it was number two Brazil that really made the headlines - as well as being named the host country of the 2014 World Cup, Brazil will also host the 2016 Olympics - so let's check out the tourism boom expected to hit Brazil as a result...

Brazil

Brazil has been hitting the headlines of late - so let's check out what the property world has been saying about the land of carnival, soccer and supermodels.

Property Frontiers picked Brazil as one of the places investors should be turning their attentions to in 2010. ‘Brazil has one of the world's healthiest economic growths and a population that is becoming wealthier year on year. Investing in both first home and holiday accommodation for the local market offers excellent growth potential.'

OPP reported on the Olympic effect ‘causing a boom for Brazil.'

Foreign investors are flocking to Brazil following the decision to hold the 2016 Olympics there, but sales have so far been limited by investors' disappointment at missing the best deals - Latin America portal network VivaReal has seen a spike in searches in Brazil since the Olympic announcement in October.

Brazilian Gateway is focusing its investors' attention on less well-known destinations beyond the popular resorts and cities. "[These areas] don't necessarily have the beach, but they could have a more significant capital growth on their properties."

Another agent, Kapital Assets, has seen interest rise across its price spectrum for properties in the northeast of the country. "We believe the northeast represents the best potential returns for private investors," said CEO Keith Punler. "We are selling in the price range from £12,000 for a serviced building plot to £150,000 for a fully fitted four-bed villa."

Arabian Business announced that Dubai's Jumeirah Group is planning to open its first hotels in Brazil as rising incomes in Latin America's largest economy and the 2014 World Cup and 2016 Olympic games generate demand.

'The time is right now for us to be entering the Brazilian market,' James Erlacher, senior vice president of development for the Americas at the Dubai-based Jumeirah Group.

Jumeirah's priority is to operate hotels in Sao Paulo and Rio de Janeiro, Brazil's biggest cities, and it's also considering resorts 'primarily in the northeast part of the country,' Erlacher said.

SPC Overseas reported that 2009 Brazil is now emerging as the strongest BRIC link. Brazilian President Lulapredicted that Brazil will be the 5^th largest economy in the world by 2020.

Homes Overseas reported that a growing number of international property investors and companies are investing into the Brazil property market, particularly in Sao Paulo, the country's most populous state.

The Brazil property market is attracting global investor interest thanks to its rapidly improving economy, and the fact that it has been selected to host of the 2014 football World Cup and 2016 Olympic Games, which will lead to the construction of new and improved infrastructure and homes in Brazil.

GoldenTree InSite, based in New York, recently raised £300m to invest in Brazilian property, while Portuguese hotel group Porto Bay acquired an 80-room boutique facility in Sao Paolo.

Valia, one of Brazil's largest pension fund suppliers, also bought part of the Continental Tower in Sao Paolo for £70m. Canada's CPP Investment Board also entered into a joint venture with Cyrela Commercial Properties SA Empreendimentos e Particpacoes, which will include the real investment arm of the government of Singapore, to develop and acquire property in Brazil.

The Daily Mail had the final word: ‘UK travel agents are already reporting an increased interest in holidays to Brazil. The arrival of the world's best athletes will introduce a new audience to Rio and while staging two major tournaments in as many years is an enormous feat for any destination, it's hard to deny this hugely endearing city its chance to samba on a global stage.'

Other movers and shakers

The USA scrambled up from second place in October's chart to take prime position in last month's chart. Snapping at America's heels was the subject of our story - Brazil - swiftly followed by the USA (again!)

Bounty-bar Barbados took fourth place, followed by - you guessed it - the USA. It must have been a month for making several appearances. Brazil took sixth place.

The Cayman Islands did well to secure lucky number seven, followed up by the USA in both eighth and ninth places.

Rounding off November's Investment Property Watch chart was old favourite France in tenth place.

Table showing November's top investment properties

Rank	Property	Country	Company
1	Grande Oasis	USA	Property Frontiers
2	World Cup 2014 - new home	Brazil	Dream Resorts Ltd
3	Foreclosure- Detroit townhouse	USA	Cicada Land and Property Investments
4	Caribbean Investment property	Barbados	Your Home in the Sun Ltd
5	Condo for sale in Orlando	USA	The Armarium Group
6	Palmo Do Mar	Brazil	ProActive Internet S.L
7	Selworthy Grove -land with planning	Cayman Islands	Oasis Grand Development - TMC
8	Development 17A	USA	Gainmaker
9	Glenbrook	USA	Gainmaker
10	Montpellier studios for sale	France	Artaxa Immo SARL

Check out some properties for sale in Brazil before the whole world comes knocking in 2014 at http://brazil.themovechannel.com/

Picture by idman

Rio: crackdown prior to events

Catherine Deshayes — 22/12/2009 10:49:00

Rio de Janeiro may have been declared the sports city of the moment after winning the 2016 Olympics and the 2014 World Cup, but officials admit there is a long way to go before it is ready to host the world's top sports stars...

In a bid to clean up the coastal sprawl police have launched a crackdown on anti-social activity and former New York mayor Rudy Giuliani has been brought in to advise on crime.

But critics claim that police bans on beach games and other activities threaten the soul and spontaneity of the iconic Copacabana and Ipanema sands.

Up to two million people from all walks of life pack Rio's beaches on a sunny day and the heaving masses are considered part of the city's charm.

But the police crackdown is designed to bring order to the sands by stopping games such as 'keep-up' - involving keeping large groups of people and a football - between 8am and 5pm.

Another rule will ban sales of food on skewers such as shrimp and cheese that are hawked by entrepreneurs plying the sands.

Beach-goers will not be able to bring big coolers of drinks or play music on their stereos, which can often spark the giant dance sessions the beaches are so famous for.

The hundreds of 'barracas' or huts that line the beaches, emblazoned with the names of their owners, selling everything from beer to barbecue meat as well as hiring out deckchairs, will also lose their individuality.

Under new rules they must be replaced by all-white tents and modern equipment and the self-promoting names painted in bright colours will not be accepted.

'They are putting in place their own law, but it's wrong,' said Marcel Damasceno de Matos, a 39-year-old who said he has worked his patch of Ipanema beach for 10 years.

'I have customers from the United States and other countries who come back year after year and look for my name. Now there's going to be a lot of confusion.'

The crowded beaches also cause another headache for city officials with huge amounts of litter left behind by partying Cariocas, as Rio dwellers are known.

Mayor Eduardo Paes recently told Rio citizens to stop being such 'pigs,' referring to their habit of leaving piles of garbage on the beach.

The man in charge of carrying out the new policy, public order secretary Rodrigo Bethlam, said the beach's central place in Rio life made the battle for order there crucial.

'The beach is an emblematic place. If we can succeed in organising the beach, it means we can organise the city,' he told Reuters.

But it is the beaches' infamy as the most popular hangout in town that will make it a tough job for the police to organise.

Renato Franca, a 26-year-old civil engineer and 'The beach is the most democratic place in Rio - everyone from the son of a banker to the robber of a bank can come here and play ball together.'

But there is hope that the chaotic city will maintain its charm. Despite many laws banning certain activities, Brazil is known for its glaring lack of enforcement.

Bernardo Braga, a 26-year-old model and student who spends her free time with friends on the beach, said: 'The law exists, but you're in Brazil. 'You just have to walk along here to see all the rules being ignored.'

Source: www.dailymail.co.uk

Discovering Brazil's Maceió

Catherine Deshayes — 18/12/2009 11:00:00

How's this for a dream job - Margaret Summerfield has travelled extensively in Central and South America, scouting real estate opportunities for Pathfinder, so in this article she tells TheMoveChannel.com all about finding sea, sand, sunshine and second homes in Brazil's Maceio...

I scheduled this stop on my Brazilian coastal trip at the last minute. But I'm glad I made the time, because I've discovered a place that I'm sure will prove to be of broad interest to expats. That place is Maceió, in the Brazilian state of Alagoas. It's a city that has the amenities of Recife's Boa Viagem district, without the sharks.

Surprisingly, Maceió is not well-known outside of Brazil. Yet it has all the qualities you need for a second home location: year-round sunshine, good infrastructure, big-city conveniences, and beautiful beaches. Now that Brazil's coast is attracting increasing numbers of North American buyers, I don't think Maceió will remain unknown for much longer.

Maceió has that endless-summer feel. The light sand of the city beach hugs the bay. The jade coloured water sparkles in the sunshine, while surfers effortlessly manoeuvre the rolling white-capped waves.

The boardwalk runs alongside the beach, and gives you the chance to admire the bay and the gleaming condo buildings on the other side of the road.

Maceió has all the conveniences you need, from shopping malls to large supermarkets to modern hospitals and clinics. This is a family-friendly place. Sections of the boardwalk close to traffic on weekends so children can cycle with their parents, or stroll in groups.

Stages are sometimes set up for live music (a classical band played while I was here), and many of the boardwalk cafes and restaurants offer live music in the evenings. You can buy newspapers, juice drinks, fresh coconut water, traditional tapioca pancakes and ice cream from the boardwalk kiosks.

Maceió doesn't have much in the way of historic or cultural attractions. It's the capital city of Alagoas, a state sandwiched between the states of Pernambuco and Sergipe. The economy of Alagoas has gradually switched from sugar to service industries over the years.

Nowadays, the focus is the beach. In the last twenty years, increasing numbers of tourists have changed Maceió from a sleepy port town to the Miami-style destination it is today.

The city has a choice of beaches. Jatiúca has an upscale feel, and a nicer stretch of sand than Ponta Verde (Ponta Verde is where most of the tourist hotels are located). If you travel a little further outside the city, you'll find less crowded beaches, shaded by coconut palms, and tiny fishing villages.

There's a luxurious feel to the ocean-view buildings facing the boardwalk, and price tags to match. Most apartments are the larger sizes favoured by Brazilian families, ranging from 250-500 square meters (2700 to 5400 square feet). These prime apartments can cost up to 3 million reals £1.05 million) which works out to around 6000 reals per square meter (£2098). That's comparable to the 5000-7000 reals you'd pay in Recife's Boa Viagem district.

Go a block or so back from the beach though, and prices drop dramatically.

I viewed one development, already halfway constructed, on an elevated site in the city. Even from the ground floor, the view was incredible. The city lay at my feet, stretching to the beach and the emerald ocean. Pricing started at 211,545 reals (£73,989). That's £879 per square meter.

One interesting concept was a complex of residential apartments, commercial properties and a spacious leisure area. Situated directly opposite the boardwalk, unit sizes ranged from 73 to 113 square meters (785 to 1200 square feet), and price points from 199,192 reals (£69,648). The average per square meter price is £1069-this development is centrally-located. The developer is a major Brazilian house builder in partnership with a local constructor.

Another development one block from the beach, already under construction, had units averaging 43 square meters (463 square feet), with prices from 116,500 reals (£40,680). That's £946 per square meter. It's not as central as Jatiúca Trade Residences, but it is still very close to the boardwalk and beach.

A re-sale apartment just off the boardwalk was 280,000 reals (£97,772) for 130 square meters...just £752 per square meter. This to me was a real bargain. The spacious apartment boasted a near-perfect location, next to the boardwalk and a small upscale resort hotel, and within walking distance of shopping, restaurants, nightlife...and only a couple of minutes from the beach.

While today, Maceió is still relatively unknown outside of the domestic tourist market, it looks as if Maceió's city plan will include more tourist amenities in the future. I noticed that some major Brazilian development companies had several large tracts of beachfront land bordering Jatiúca, on the city's outskirts. I will investigate and see whether their plans are short-term land banking or resort-style development.

Maceió is an ideal location for a second home, for a beach-lover or water-worshiper. For many, it would also be a great place for retirement.

PS: Speaking of retirement, I found a great location that many will find just perfect. I'll cover that in my next report.

If you want to check out some properties for sale in Brazil, visit http://brazil.themovechannel.com/

Picture by Margaret Summerfield

Itamaracá, Brazil: paradise at affordable price

Catherine Deshayes — 11/12/2009 12:37:00

The north end of Brazil's Itamaracá island consists of secluded beachfront homes and lots that are priced from $30,000 to around $50,000 - although the area is located in a remote part of the island and offers few amenities, the fine sand beaches of northern Itamaracá offer potential investors peace, tranquillity and natural beauty at a very affordable price, says Lee Harrison...

I sped across the causeway and penetrated the lush, tropical landscape of the island of Itamaracá. But instead of continuing through the hills to the popular beaches, I veered left...toward the mysterious "north end" of the island.

It's the end that few people ever see, and even fewer buy property in.

I got off to a quick start on the nicely-paved road, but the paving only lasted 100 yards. After that, it was a jarring, bumpy dirt road that continued for the next half hour, during which I traveled less than four miles. We drove through a lush forest preserve, skirted winding rivers, climbed hills, and even passed an old prison with its odd museum inviting passers-by to stop in.

But when I crested that last hill it was worth it, as I looked down on the small village with the shimmering blue Atlantic stretched out beyond.

The "north end" of Itamaracá is a hidden jewel. In fact it's so well-hidden that I've never been here before...even though I live on the same island, just a few miles away. There are three main areas that draw people to this part of the island: Praia do Sossega, Enseada dos Golfinhos, and Ponta da Ilha (aka Pontal da Ilha).

Praia do Sossego is the only one of these areas that I'd consider a town. And even then, I use the term loosely. The village has a general store or two, a restaurant, a bar, and a couple of other businesses. Otherwise, it's a mixture of small vacation homes, luxury villas, and a handful of fairly new condos. A couple of small beach bars and a long stretch of white-sand beach round out the amenities. Praia do Sossego (restful beach) is the first landing you'll make on the north end, whether you're arriving by road, or by the ferry crossing. The ferry costs about 50 cents at high tide, and half that at low tide. (But don't plan on taking your car on the voyage.)

As you travel up the fine-sand beaches to the north, the next populated area is Enseada dos Golfinhos (Inlet of the dolphins). This sector feels fairly new, and consists mainly of vacation homes; some of which are quite luxurious. Amenities here are even slimmer...a small general store and a couple of beach bars that serve fresh seafood and cold beer.

At the top of the island, it takes on a more upscale feel as you enter Pontal da Ilha (Point of the Island). This part of the island seemed to have the highest concentration of nice homes, the widest, calmest beach, and the most well-kept surroundings. The roads were in good shape, I saw no litter or disrepair, and they even had a neighborhood watch association to keep an eye on things.

Pontal da Ilha faces North instead of east, so it does not see the head-on wave action of the Atlantic. So the waters here are deep blue and very calm. The beaches enjoy views of the ocean to the right, the estuary to the left, and the hills and homes on the mile-distant neighboring mainland.

And property prices are amazingly low for a haven with such peace and natural beauty. We saw two lots on the beach at Pontal da Ilha selling for right around $30,000 (they were on the beach pictured above.) In Enseada dos Golfinhos or Praia do Sossego, a nice vacation home (not beachfront) will set you back between $32,000 and $45,000. A two bedroom, one-bath condo in a small, new beachfront project is going for $47,000.

But remember, this area is remote, and there are few amenities. If you come to the north end of Itamaracá, don't come for the nightlife...come for the peace, tranquillity and natural beauty.

Check out homes for sale all over Brazil at http://brazil.themovechannel.com/

Written for International Living and http://www.nuwireinvestor.com/

Olympic effect causes boom for Brazil

Catherine Deshayes — 26/11/2009 10:47:00

Foreign investors are flocking to Brazil following the decision to hold the 2016 Olympics there, but sales have so far been limited by investors' disappointment at missing the best deals - Latin America portal network VivaReal has seen a spike in searches in Brazil since the Olympic announcement in October...

"Rio de Janeiro saw an increase of 253.66% from September to October," said VivaReal's co-founder Brian Requarth. "Traffic is mainly coming from the US, UK and Canada, but we have had visitors from 60 countries in October compared to only 33 in September."

Agent Brazilian Gateway has also seen an increase in interest but not yet in sales. "The irony is that prices have already gone up in Rio since the World Cup [was announced] and now with the Olympics, [prices per sqm] in places like Barra, Copacabana, Ipanema and Leblon, are among the most expensive in the world," managing director Nara Vidal told OPP.

"After the initial interest, investors come to terms with the reality of the Rio property market, which is completely different from most of the other areas in the country. They then realise their money cannot go as far as they believed, especially when they understand that appreciation of property prices in Rio is slow if compared to other areas."

Better potential
Brazilian Gateway is focusing its investors' attention on less well-known destinations beyond the popular resorts and cities. "[These areas] don't necessarily have the beach, but they could have a more significant capital growth on their properties."

Another agent, Kapital Assets, has seen interest rise across its price spectrum for properties in the northeast of the country. "We believe the northeast represents the best potential returns for private investors," said CEO Keith Punler. "We are selling in the price range from £12,000 for a serviced building plot to £150,000 for a fully fitted four-bed villa."

Source: www.opp.org.uk

Jumeirah hits Brazil

Catherine Deshayes — 23/11/2009 10:53:00

Dubai's Jumeirah Group plans to open its first hotels in Brazil as rising incomes in Latin America's largest economy and the 2014 World Cup and 2016 Olympic games generate demand, according to a report...

'The time is right now for us to be entering the Brazilian market,' James Erlacher, senior vice president of development for the Americas at the Dubai-based Jumeirah Group, told the Bloomberg.

Jumeirah's priority is to operate hotels in Sao Paulo and Rio de Janeiro, Brazil's biggest cities, and it's also considering resorts 'primarily in the northeast part of the country,' Erlacher said.

Source: www.arabianbusiness.com

Hands-off Brazil investment

Catherine Deshayes — 11/11/2009 11:19:00

Property investors looking for a more hands-off approach than the traditional "buy/rent/sell" options - and who aren't averse to a bit of out-of-the-box thinking - should consider buying property in Brazil, according to Philip Wye of Ignition Investments Limited - Wye points out that there are a number of investment vehicles within the Brazilian real estate sector which are taking advantage of some pretty hefty government investments into the country's affordable housing sector...

Brazil's economy has been booming in recent years, with the country's huge natural and human resources helping to propel it to the global economic centre-stage as part of the BRIC quartet of high-powered emerging markets.

"Brazil is the fifth-largest country in the world with over 190 million inhabitants and its economy is now in the global top 10. While virtually all other economies are shrinking, Brazil's is stable and growing," says Wye.

As a result, Brazil's middle-class is expanding at a rate of knots, with all the increased affluence and aspiration that entails.

However, the supply of residential properties in Brazil is not keeping pace with the new demand among many hitherto-impoverished families for higher-quality urban homes: a recent report by Ernst & Young puts the deficit at some 8 million properties - and rising.

To counter this growing problem, Brazil's government is providing billions of dollars in affordable credit to families - as well as offering incentives to those developers building affordable homes in Brazil with state loans and tax breaks.

Overseas investors are beginning to enjoy access to the fruits of this affordable-housing revolution, with some funds now open suggesting returns of at or near 10% per annum. While it was the luxury end of the Brazil property market that was making waves during the UK's foreign-buying boom years, it might well be the other end of the market that offers prospects of real treasure in today's altogether-less-clement market climate.

Source: www.homesoverseas.co.uk/news

Brazil investors on the ball

Catherine Deshayes — 10/11/2009 11:20:00

A growing number of international property investors and companies are investing into the Brazil property market, particularly in Sao Paulo, the country's most populous state, reports UV10 - the Brazil property market is attracting global investor interest thanks to its rapidly improving economy, and the fact that it has been selected to host of the 2014 football World Cup and 2016 Olympic Games, which will lead to the construction of new and improved infrastructure and homes in Brazil...

GoldenTree InSite, based in New York, recently raised £300m to invest in Brazilian property, while Portuguese hotel group Porto Bay acquired an 80-room boutique facility in Sao Paolo, according to UV10.

Valia, one of Brazil's largest pension fund suppliers, also bought part of the Continental Tower in Sao Paolo for £70m.

Canada's CPP Investment Board also entered into a joint venture with Cyrela Commercial Properties SA Empreendimentos e Particpacoes, which will include the real investment arm of the government of Singapore, to develop and acquire property in Brazil.

Source: www.homesoverseas.co.uk/news

Brazil: Slowing Real growth

Catherine Deshayes — 28/10/2009 10:15:00

Trying to slowdown the skyrocketing value of its currency, Brazil imposed a tax on foreign investment in Brazilian stocks and bonds, but still, many analysts believe that the Brazilian real will continue to strengthen as central banks continue to reduce their holdings in the U.S. dollar and to diversify into other currencies...

Brazil has imposed a two per cent tax on foreign investment in the country's stocks and bonds. Analysts have called the move a "desperate" bid to reign in the skyrocketing value of its currency, which has gained more than 30 per cent against the dollar this year.

The tax will make it more difficult for companies to obtain financing and drive government bond yields higher, but Brazilian Finance Minister Guido Mantega said it will not affect foreign direct investment (FDI) into the country.

"We will continue to encourage foreign investment," said Mantega. "Our concern is with excessive speculative investments, short-term capital that would cause a bubble."

Brazil's benchmark stock index, the Bovespa, has surged 79 per cent this year and yesterday closed at its highest level in 16 months. About 17 billion reais of net inflows from international investors had poured into the Brazilian stock market through September.

Meanwhile, commodities prices, a credit upgrade by Moody's Investor Service, and a rebound in gross domestic product (GDP) have made the Brazilian currency the best performing major currency this year - up as much as 36 per cent against the dollar.

However, the strengthening real has also made Brazilian exports less competitive. By stemming the flow of dollars into Brazil, the government hopes to contain the currency's rise. But many analysts believe the real's long-term potential will eventually overwhelm any short-term effect wrought by the tax.

Nick Chamie, head of emerging markets research at RBC Capital Markets Corp., told Bloomberg News that he remains "bullish" on the real in the "medium term" even after cutting the currency to "underweight" from "overweight."

"There are very good prospects for growth in Brazil, it is going to be a major destination for foreign direct investment," Chamie said. "We downgraded it tactically. On a short-term basis, it will underperform emerging-market currencies."

Brazil's economy expanded by 1.9per cent in the second quarter and is expected to log growth of 5per cent or more in 2010.

At the same time, the dollar is expected to languish as the United States fights its way out of a devastating recession. Underscoring its weakness was a recent report that showed the greenback was all but abandoned by the world's central banks in the second quarter.

Central banks around the world increased their foreign currency holdings by $413 billion in the three months ended in June, the most since at least 2003, according to data compiled by Bloomberg. But 63per cent of that new cash was put into currencies other than the dollar. That's a record-high percentage for any quarter with more than an $80 billion increase in holdings.

The dollar's 37per cent share of new reserves is down from about a 63per cent average a decade ago.

"Global central banks are getting more serious about diversification, whereas in the past they used to just talk about it," Steven Englander, a former Federal Reserve researcher who is now the chief U.S. currency strategist at Barclays PLC (NYSE ADR: BCS), told Bloomberg. "It looks like they are really backing away from the dollar."

Englander predicts the U.S. dollar will drop another 3.3per cent over the next three months.

Developing countries have sold about $30 billion for euros, yen and other currencies each month since March, according to strategists at Bank of America-Merrill Lynch.

Written by www.moneymorning.com and www.nuwireinvestor.com

Kicking off interest in Brazil

Catherine Deshayes — 20/10/2009 11:10:00

Moneycorp has launched a new Brazilian Real Service in response to what is says is an increase in the number of Britons looking for a Brazil property investment...

Since Rio de Janeiro was awarded the 2016 Olympics Games to compliment the fact that Brazil is to host the 2014 football World Cup, the currency exchange firm has seen an increase in British investors increasing their focus on the country.

In response to this, Moneycorp has partnered with Banco Rendimento to launch the Brazilian Real Service which fixes the Brazilian real rate of exchange so that clients know how exactly many Reals will be delivered.

The service also reduces the time between transfer and receipt of funds, while guaranteeing that each trade will be registered with the Central Bank to facilitate the future repatriation of funds.

In August alone, Moneycorp has seen enquiries regarding Brazil propert investment jump by over 57% and over £22m was sent to Brazil from the UK for property related purposes in 2008 alone.

Deane Roe, Brazilian Real Account Manager for foreign exchange specialist Moneycorp, said: "We are delighted to launch the Brazilian Real Service to help our clients get the best deal possible when looking to invest in Brazil. At a time when people are trying to make the most of their investments, it is vital that they take some simple steps to ensure they are not wasting their hard-earned cash. Our Brazilian service removes all of the complications that can arise when transferring money to Brazil and, at the same time, saves our clients a lot of money."

Source: www.homesoverseas.co.uk/news

Brazil wins bid

Catherine Deshayes — 06/10/2009 11:44:00

Brazil property prices are expected to escalate over the next few years after Rio de Janeiro was selected as the host city of the 2016 Olympic Games - the first time ever that the Games have been given to a South American nation - last Friday...

The announcement was made at the International Olympic Committee meeting in Copenhagen, Denmark, that Rio had successfully beaten off competition from three other cities - Chicago, Tokyo, and Madrid.

The Brazil real estate sector and rapidly expanding economy are expected to be the real winner of the decision to award Rio the rights to host the tournament.

Brazil has already been selected to host the 2014 FIFA Football World Cup, the largest sporting event in the world. But with the 2016 Olympic Games to add, the world's media spotlight will be firmly focuses on the South American country in the coming years.

Shrewd property investors will also have one eye firmly on cashing in on the sport's popularity by purchasing property in Brazil. Demand for homes to both rent and buy is expected to soar in the run-up and during the tournaments themselves, and in turn drive Brazil property prices upwards.

President Lula commented: "Brazil is a country confident in its future, which is in a magical moment of growth, economic improvements and we have a population completely passionate about sports."

Rio plans to spend around £9bn on hosting the Games, with around £7.3m earmarked for construction and infrastructural improvements.

The city will use 34 venues, including 18 existing facilities, many of which are already being renovated for the 2014 FIFA Football World Cup.

Source: www.homesoverseas.co.uk/news

Brazil bid looks hopeful

Catherine Deshayes — 30/09/2009 12:24:00

The President of Brazil, Luiz Inacio Lula da Silva, is convinced his county and the city of Rio de Janeiro have done enough to secure the rights to host the 2016 summer Olympics, with the winning host city announced this Friday (2 October)...

Da Silva believes that Rio is currently the favourite to be given the go-ahead when the decision is made by the International Olympic Committee in Copenhagen on Friday due to the fact that Brazil is the only country among the world's ten richest never to have hosted the tournament.

If da Silva is accurate in his estimation, the tournament is sure to offer the Brazil property market a boost.

The president told a national radio station: "Brazil being Latin America's biggest economy should convince people of the good qualities that we have to host the Olympics."

The other cities vying for the right to host the games are Chicago, Madrid and Tokyo.

Brazil has already been awarded the rights to host the 2014 Football World Cup. The tournament is the sure to boost demand for property in Brazil in the run-up to the 2014 Football World Cup, thanks to the extensive global exposure the host country will receive.

Source: www.homesoverseas.co.uk/news

The World Cup Effect

Catherine Deshayes — 24/09/2009 10:36:00

How's this for a dream job - Ronan McMahon has travelled to 15 countries in the past 12 months alone following real estate trends with the potential for profit - he uses his knowledge to give TheMoveChannel.com readers the inside track to unique profit opportunities in Brazil...

On May 31^st this year, I sat in a crowded restaurant on Fortaleza's boardwalk. Everyone was silent. No one even dared fumble with their cutlery. The tension was unbearable...that was until the restaurant erupted. Champagne corks started flying, tables were for dancing. Far away in Nassau (on the Bahamas) Fortaleza was named as a host city for the 2014 Soccer World Cup. We were glued to the live feed.

This was good news. We knew it would mean dramatic infrastructure upgrades, investment in tourism, media attention, a feel-good factor and marketing of Fortaleza. The tournament itself will see a tourism boom and unprecedented global exposure for Fortaleza.

I'm back in Fortaleza...and writing to you from the same restaurant. This is my eighth scouting trip here in sixteen months. The opportunities are so good and the market moving so fast, I need to come here every two months. Now Fortaleza is getting down to the serious business of planning and delivering the infrastructure it needs to have in place for 2014.

The mood on the ground is one of excitement. There's a buzz in the air. The Governor, Cid Gomez, summed up the feeling of the city when he said "The movement of wealth that an event like this can bring to our region is undoubtedly a landmark in our history." There is unity of purpose here. This is Fortaleza's chance to show the rest of Brazil and the world how great a show they can put on.

I find a real estate market and economy here that is already benefiting from the world cup effect. Companies involved in, or pitching for projects associated with 2014, arrive weekly in town. The two five-star hotels (The Gran Marquise and Hotel Luzeiros) on the boardwalk I visited were full. Corporate lettings were unavailable....and this is the low tourist season. Already strong demand has accelerated since this announcement. If you hope to travel here in the peak domestic tourism times of mid-December through Easter, you need to book accommodation now.

This is good news for those of us who have an interest in the short-term rental market in Fortaleza.

Foreign investors looking to profit from this world cup effect are on the prowl in numbers. Mostly from Northern Europe, these guys have seen this trend before. Real estate prices in South Africa rose by a whopping 35% in 2005 with the hosting of the 2010 World Cup a major driver. A sense that "green shoots" are emerging in Europe is encouraging investors who have been cautious because of problems in their home countries.

The big buzz in Fortaleza (and surrounding areas) is about the huge investment in tourism and infrastructure. The government is spending 9.8 billion reais ($5.25 billion) in Fortaleza in the lead up to 2014. 63.3% of this spend will be on infrastructure projects. The governor released a list of projects that will be delivered for the 2014 games in June this year.

850 million reais will be spent on tourism projects--gentrification of urban areas and installing attractions like the state aquarium. And big amounts will also go toward things you'd expect--improved Internet access, better gadgets for the police, new equipment for the hospitals, and so on.

Transport infrastructure with a 6 billion reais spend is the big winner. The government is committed to delivering quality projects that will encourage and facilitate the economic development of the region.

The Fortaleza area is going to see a major upgrade in road (there will be a new ring road), rail (Fortaleza is getting a metro system), bridge, port, and airport infrastructure. This will make certain areas more accessible and desirable. This will drive real estate prices in these areas higher.

Many of the projects on the governor's list could create an opportunity for us to profit. Here are a few that have caught my eye.

The South Line of the Metro will cost 1.8 billion reais. This will link downtown with middle-class areas and outlying industrial areas.

450 million reais is to be invested in the stadium. This area will also benefit from improved transport infrastructure.

Over 100 million reais has been committed to new roads and road upgrades in the Morro Branco area. 800,000 tourists visited this area last year. Expect this number to rise as infrastructure improves. In addition to the local investment, the new ring road will reduce the drive time to this area to 45 minutes.

Fortim (to the east of Fortaleza) has been identified as an area to host visiting teams' training camps. The government is already negotiating to host Spain. This project will involve a major upgrade in tourism infrastructure in addition to huge marketing exposure for Fortim.

Road access is on its way to the village of Praia Bela from Aquiraz. This is a relatively small project (10.3 million reais) but will have a huge impact on Praia Bela. This area will also benefit from the completions of the bridge and new road from Praia du Futuro to the Beach Park area.

Further funds have been allocated to upgrading the boardwalk area. And to the east of the boardwalk, the Port of Mucuripe is getting a 120 million reais passenger terminal.

9.7 million reais has been allocated to complete the bridge over the Coco River. Another 62 million has been allocated to link this bridge with Fortaleza's ring road. This project will have a big impact on Praia du Futuro and the area that's going to open up on the other side of the bridge.

If we buy pre-construction today in areas set to benefit from the path of progress, by the time we take delivery of our units in three years time, this new infrastructure will have been delivered or will be within months of being delivered. Neighborhoods will change beyond recognition. Particularly the areas around the new aquarium, around the stadium line and the tourist areas (like Morro Branco) to the east.

The end users (of which there are many in Brazil) won't catch on to this until they can see, touch, and jump on the infrastructure. Our place is ahead of them.

Stay tuned in the coming weeks as I explore opportunities created by these projects.

Written for www.pathfinderinternational.net/news/view/Profiting_from_the_2014_World_Cup_in_Fortaleza/

Picture by everystock

1 million new homes for Brazil

Catherine Deshayes — 22/09/2009 11:11:00

The Brazilian Government plans to construct as many as one million new residential properties in Brazil between now and 2011, according to one leading Brazil property developer...

A Bloomberg report quotes Carlos Trostli, chief executive of homebuilder Construtora Tenda, commending the government's plans.

He said: "The beauty of the government programme is that for the first time it has set a goal. It will be very difficult for someone to come and stop a program that is generating jobs and increasing fiscal revenue."

Earlier this year Brazil president Luiz Inacio Lula da Silva said that the government intended to spend up to £11.5bn on building new properties in Brazil.

The Brazil property sector, along with the country's economy, has gone from strength to strength in recent years. Yet demand for property in Brazil should continue to incresae over the next few years, as the country is scheduled to host the 2014 football World Cup.

Brazil has also been short listed to host the 2016 Olympic Games. The host destination will be announced next month.

Source: www.homesoverseas.co.uk/news

Mind the gap

Catherine Deshayes — 25/08/2009 11:04:00

Special enlarged seats for obese people have been installed at underground stations in Sao Paulo, Brazil...

The blue chairs are nearly twice as wide as normal chairs and can support passengers weighing up to 40 stone without breaking.

The seats are accompanied by signs picturing a rotund customer with the words "Priority chair for obese people".

They have been installed in response to the country's growing obesity problem, in an attempt to encourage larger people to use public transport.

But transport bosses say that they are being shunned by obese customers who are too ashamed to use them.

"It may be that they don't want to think of themselves as fat or they resent being put in with pensioners and the disabled," said one manager.

The Sao Paulo underground system may be going out of its way to help obese passengers, but other transport firms are less understanding.

Ryanair, the low cost airline, recently announced plans to increase fares for overweight passengers.

"The revenues from any such fat tax will be used to lower the airfares for all Ryanair's passengers yet further," an airline spokesman said.

United Airlines has also started to charge overweight passengers more if they cannot fit into conventional economy seats.

Source: www.telegraph.co.uk

Backpackers sentenced

Catherine Deshayes — 21/08/2009 10:16:00

Two British backpackers convicted of insurance fraud in Rio de Janeiro during a round-the-world trip may be forced to stay in Brazil for months to perform community service...

Shanti Andrews and Rebecca Turner, both 23, were given a 17-month custodial sentence by a court on Wednesday night but it was immediately reduced to community service and a £4,000 fine.

The judge stipulated they carry out the service in Brazil. The sentence, which will be appealed by their lawyer in the hope of them serving it in the UK, means the two law graduates could find themselves sweeping the streets of Rio's notorious favelas, or slums.

An official at the court said: "They could have to sweep the streets, they could have to read to children in an orphanage, they could have to teach English."

She said the pair could be ordered to work in one of Rio's 800 favelas, many of which are no-go zones even for police. But she stressed they would work with residents' associations and that safety was of paramount importance.

"Judges try to find a punishment that is appropriate in each case," said Ivan Vieira, a criminal lawyer. "I think that in this case the most appropriate thing could be for them to give English lessons at a state school."

The women, who studied together at Sussex University, were convicted of attempted insurance fraud, wasting police time and falsifying a police report. They falsely claimed £1,000 of belongings, including a mobile phone and digital camera, were stolen during a robbery, with a view to using the insurance pay out to help fund their nine-month backpacking holiday.

Their lawyer, Renato Tonini, said they were "worried" about being forced to stay in Brazil. "They are very worried about that. They want to get back to England as soon as possible," he said.

They face a minimum of 64 days' community service, to be decided by another hearing, but it is likely to be spread over several months.

Source: www.telegraph.co.uk

Bail for Brits

Catherine Deshayes — 03/08/2009 10:51:00

Two 23-year-old British women accused of lying about a robbery in a travel insurance scam have been freed on bail from a Brazilian jail, legal officials in Rio de Janeiro said on Saturday...

Shanti Simone Andrews and Rebecca Claire Turner were ordered freed from detention late Friday pending a court hearing on Wednesday on fraud charges, the Rio court said in a statement.

A judge had initially denied bail on Thursday because of the prosecution's fears the two might try to flee Brazil.

Andrews and Turner, both recent law graduates on a nine-month round-the-world vacation, were arrested on Monday.

They had gone to police to declare A$2560 worth of possessions had been stolen days earlier on a bus trip to Rio from southern Brazil.

Officers, however, discovered some of the items listed as stolen -- including a mobile telephone, camera and iPod -- during a search of their room in a Copacabana hostel.

Rio police had been suspicious because of the delay in reporting the robbery, the fact the women's passports had not been stolen, and a rise in the number of foreign tourists declaring such crimes in apparent attempts to pocket the insurance money.

Although fraud carries the risk of up to five years in prison in Brazil, the Rio court official who decided their bail, Sergio Verani, said incarceration was a "remote possibility" for the Britons if they were convicted.

Source: www.theage.com.au

Brazil rate cuts

Catherine Deshayes — 28/07/2009 11:56:00

The central bank in Brazil has cut the country's benchmark interest rate by 0.5 per cent to a record low of 8.75 per cent, which is good news for anyone looking to buy a property in Brazil...

It is the fifth time in the past five months that the country's policymakers have agreed to reduce interest rates, which in turn lowers mortgage borrowing rates for existing Brazil property owners as well as for people currently looking to buy a home in Brazil.

The central bank is taking the opportunity to reduce rates to historically low levels, after predicting that Brazil's economy would contract by 0.3 per cent this year.

However, Brazilian property owners could see interest rates shoot back up next year, with many experts projecting that the economy will grow by as much as 4.5 per cent in 2010.

A series of Government measures, such as tax breaks and greater Government spending has already led to genuine signs that the country is now starting to emerge from recession.

The Brazil property market is expected to strengthen next year, with the United Nations predicting growth of 3.5 per cent next year.

Source: www.homesoverseas.co.uk/news

Which economies will grow?

Catherine Deshayes — 22/07/2009 10:40:00

Property markets across Latin America and the Caribbean are expected to strengthen next year on the back of average economic growth of 3.1 per cent in 2010, according to figures compiled by The United Nations Economic Commission for Latin American and Caribbean (Eclac)...

The Brazil property sector could be one market in Latin America that records better than average growth for the region, with the country's economy expected to increase by 3.5 per cent next year.

Data compiled by Eclac shows that Brazil's gross domestic product (GDP) will fall by around 0.8 per cent this year, compared to -1.9 per cent for the region at large, due to the global economic crisis, following six straight years of growth.

The region's projected economic decline is far lower than Ernst & Young Item Club's prediction that the UK economy will set shrink by 4.5 per cent this year, the largest fall in a single year since 1945.

Eclac's prediction compliments that of Brazil's central bank, which also expects Brazil's economy to grow by 3.5 per cent in 2010.

Source: www.homesoverseas.co.uk/news

Hoy's new home

Catherine Deshayes — 21/07/2009 10:58:00

Olympic cycling ace Chris Hoy may need to do some backpedalling... after snapping up a new pad in a resort packed with single women...

The 32-year-old has splashed out nearly £50,000 on a luxury apartment in Laguna Beach, Brazil.

Triple Beijing gold medal winner Chris, from Edinburgh, will relax there between races.

But his 28-year-old lawyer lover Sarra Kemp may want to tag along because it's a single man's paradise.

The property company he's buying from has been inundated with female callers desperate to snap up holiday homes in the development.

On one day last week the company - Marbella-based Obelisk International - took calls from 38 different single women looking to buy.

Last night a pal said, "He hasn't got a wandering eye but I'm sure if he ends up living among all these single women some of them may try and get their claws into him, especially when they realise what a hero he is.

"Obviously he's hoping Sarra will be coming with him whenever she can so they can catch up on some of the loving he has to give up during training and competitions."

Chris is set to pick up the keys and visit the resort shortly.

Last night he told us: "I don't get much time off but when I do, I want to spend it somewhere really special.

"Brazil's climate means I can go there any time to fit in with training."

Source: www.dailystar.co.uk

Brazil bouncing back

Catherine Deshayes — 17/07/2009 10:05:00

Brazil's federal savings bank reports that the volume of Brazil property mortgage applications submitted escalated in Q1 2009...

Data released by Caxia Economico Federal (CEF) shows that there was a 75 per cent increase in the number of people looking to secure mortgage finance in order to buy a property in Brazil in Q1.

Talking to Brazilian news Estado, Jorge Hereda, a director at CEF, said that the bank's credit portfolio had topped £5.3 billion.

CEF holds a huge share of the local mortgage market and while the Brazil property credit market remains relatively undeveloped, suggesting that the sector could grow rapidly over the next few years.

Brazil has one of the fastest growing economies and property markets in the world.

Source: www.homesoverseas.co.uk/news

Brazil bouncing back

Catherine Deshayes — 10/07/2009 10:28:00

The global economic slump presents an excellent opportunity for the Brazil property market and economy at large to strengthen over the next few months, according to an economist at Neptune Investment Management...

"Brazil's investment potential is second to none, but it needs more capital", James Dowey wrote in the Daily Telegraph. "It is an opportunity to reorient their economies towards more sustainable sources of demand."

Dowey's comment illustrates the potential for capital growth in the Brazilian property market, at a time when Bloomberg reports that the country's recession looks to be coming to an end.

Source: www.homesoverseas.co.uk/news

Brazil bouncing back

Catherine Deshayes — 26/06/2009 10:25:00

Sales in the Brazil property market appear to be bouncing back, following a subdued year, caused by the economic slump, according to one market expert...

Thomas Shapiro, President of GoldenTree InSite Partners, told the Reuters Global Real Estate Summit that Brazil's economy is exceeding all expectations and the Government's measures to boost the Brazil property market is proving successful.

He referred to a recent 104-unit development in Sao Paulo which sold out in just four hours, as an example of the greater demand, not just for property in Sao Paolo, but for the whole of Brazil.

Reflecting on the "substantial" growth being recorded in the Brazilian property sector, Shapiro said that the country was unlikely to experience the same problems as US and Spanish economy and property markets, due to the fact that mortgage debt in Brazil represents just two per cent of gross domestic product.

Source: www.homesoverseas.co.uk/news

Winds of change

Catherine Deshayes — 14/05/2009 10:14:00

There is no denying the investment potential of Brazil, but while most people have focused on the country's stock market - or even real estate to a lesser extent - there are other exciting opportunities available for investors. One opportunity potentially offers investors high yields, and the chance to join the green revolution...

The stretch of coast in northeast Brazil around the city of Fortaleza is a kite-surfing mecca. The wind blows almost every day, drawing kite-surfers from around the world. You may not care for kite-surfing, but you might have a lot more in common with these guys than you think.... You could, in fact, harvest this wind for profit instead of for fun.

I'm talking about turning this wind into the most exciting income opportunity I've seen in a long time...an annualized yield of 18.8 per cent.

As a location to generate wind energy, this part of Brazil has it all. Its booming economy is fueling demand for energy. The country has an energy independence strategy and policy framework that's the envy of the world. Most importantly, the wind blows consistently, as wind energy is notoriously difficult to store.

If you think this opportunity is just for major energy companies or funds, you're wrong.

Here's how it works. You buy a piece of land suitable for the generation of wind power and lease it to an intermediary who erects and pays for the turbines and then sells the energy to the energy company. Your cut is 1.5 per cent of the value of the energy generated, plus an additional fee for the rental of the land that isn't tied to the value of energy generated.

Doesn't sound like much, but your cut from one turbine could be as high as £991 per month. One turbine can generate £66,000 worth of electricity every month in this part of Brazil. You're locked in for 20 years, after which the turbines are removed and the land is returned to you in the condition the intermediary found it. All you need to do over these 20 years is cash your checks.

This idea was originally developed by the power company to utilize vast tracts of land held by Brazilians that they weren't using themselves. The power company has conducted wind surveys along the coast, so it can make accurate projections as to how much power can be generated from a particular site...and, crucially, you can get its projections, and a letter of intent, before you buy a parcel of land.

The power company knows how much power a windmill will generate in a specific area, it knows how much it can sell that power for, and it knows how many windmills it can put up on your site. From that, the company can calculate what 1.5 per cent of the power generated will be worth...and that's your cut.

If you think a yield of 18.8 per cent is too good to be true, you are also wrong.

In Brazil, where you'll earn up to 13 per cent interest per year on fixed, one-year bank deposits, an income opportunity paying out 18.8 per cent a year isn't so strange. And for a non-Brazilian investor, it's a huge opportunity. Capital has a value here.

These potential wind farm sites are typically located two-and-a-half hours or more from the city of Fortaleza. Yields don't stack up on more expensive land near the city. One 185-acre site I know about is exactly this distance from the city. This site has more than a mile of beautiful beachfront and the asking price is £1.3 million. The projected annual return from wind power based on that price is 18.8 per cent.

The downside is that you do need to bring the land through the permitting process and, although you can sometimes negotiate special terms, you typically don't start getting paid until the wind farm is in operation. Figure on this taking 12 to 18 months.

The risk with these wind investments is that the price of energy might go down (not likely any time soon, especially with the growing local demand, and the potential for energy-independent Brazil to export its surplus power), and that the wind will stop blowing (for the likelihood of that, just ask the kite-surfers who have been drawn here from as far away as Europe for the past 40 years).

This type of land has historically been bought for long-term land banking by Brazilians who figure that infrastructure and services will come, and the land will have increased capital value in 20 years. But now, while you're waiting, your land throws off an income of 18.8 per cent a year.

Written by Ronan McMahon for www.nuwireinvestor.com

Picture by jurvetson

Boosting demand for Brazil

Catherine Deshayes — 29/04/2009 08:25:00

UK demand for property in Brazil could grow on the back of the Brazilian tourist board's (Embratur) attempts to increase British tourism levels in the country...

Embratur will promote the country to travel agents and operators across the UK and Ireland during a series of road show workshops scheduled for later this year.

The tourist board will make stops in London, Birmingham, Newcastle, Manchester, Edinburgh and Dublin between May and November on its tour of the British Isles, the third time that the board has organised workshops for the UK travel industry.

The seminars are designed to give reservations and sales teams a better understanding of Brazil and what it has to offer for consumers, holidaymakers and investors.

Source: www.homesoverseas.co.uk/news

'Hipsters' head for Brazil

Jaimie Kanwar — 27/02/2009 10:00:00

Brazil is increasingly attracting 'hip' young property investors…

Buying a second home abroad used to be the domain of the neighbours’ chat over the proverbial garden fence and the need to find out what the Jones’ were up to. Now it is a common topic of conversation amongst bright young things in trendy cafés and bars that are keeping up with the latest hip and happening emerging property markets.

A recent study carried out on the overseas property market by Datamonitor for Overseas Property Professional magazine (the largest of its kind ever undertaken in the UK and Ireland) found that younger buyers, who are increasingly driving the market, are looking to Brazil, Egypt and Croatia due to their high yields. And, last month the head of a major real estate equity fund, named Brazil as the world's most interesting developing property market.

For sexy, sassy, and incredibly beautiful, look no further than the mouth-watering bounty on offer in Brazil, which is known across the globe for its fantastic beaches, flamboyant carnivals, steamy nightlife, booty-shaking music and exciting culture.

Natal – A new hotspot

Natal in the Northeast is the new hotspot in Brazil that everyone is talking about and it has all this and more in spades. The savvy investor can enjoy incredibly competitive property prices starting from as little as £40,000. Whether you are looking for a place to live, to holiday, to rent out, or simply to invest in for the future, the obvious choice is, increasingly, Brazil.

Samantha Gore, Head of Sales & Marketing for Brazilian property experts uv10, commented: “We have first-hand proof that Brazil is definitely attracting younger buyers and, in fact, amongst hip twenty and thirty-somethings, emerging property markets such as Brazil which offer very high yields are fast becoming the ‘pensions of the 21st century’.

Brazil, particularly the trendy towns such as Pipa close to Natal, appeals to the young on price, nightlife, sporting activities from dune buggy rides to kite-surfing, year-round sunshine and a low cost of living meaning of course cheap alcohol and food of a freshness and quality rarely seen in the UK.

10 tips for investing in emerging property markets

Jaimie Kanwar — 27/02/2009 10:00:00

Overseas property can bring high capital returns, but the key is being able to identify the next property hotspot and ensure that returns are maximised.

To that end, here are 10 tips on how to successfully identify an emerging market

1. Research, research, research

Do not judge a place on face value. It is essential that buyers conduct full and thorough research into the markets they are planning on buying; how far it is from the airport? How close are the local shops, restaurants, the beach and hospitals?

2. Consult the experts

Purchasing in an emerging market can mean that there is a lack of information available regarding investing in the country. As such, it is essential that buyers consult those who specialise in investing in the region.

3. Planned EU membership

EU membership brings inward investment and the easing of restrictions on the movement of capital and trade. Many new EU states, such as Poland, have seen property prices soar following their joining.

4. Leisure facilities

Large scale facilities such as ski runs, golf courses, hotels, spas and diving centres, increase the demand for holiday homes and boosts property values. These facilities will also attract tourism, and as such rental yields will increase.

5. Government and private investment

Investment encourages improvements in the local infrastructure and amenities, bringing money into the area, strengthening the economy and pushing house prices upwards.

6. Up and coming events

Major events on the sporting calendar such as the Olympic Games or golf tournaments encourage development and regeneration and attract tourists to the area, boosting house prices.

7. The law

Keep abreast of legal issues surrounding foreigners' access to the housing market, as well as any changes to purchasing restrictions for foreign investors, this is particularly important in emerging markets, as the situation can change quickly.

8. Tax

Check the inheritance and capital gains taxes in the country you are purchasing in. It is extremely unlikely that taxation laws will be the same as in the UK. In some areas, such as North Cyprus, you may be exempt from inheritance tax, however, in others, buyers may have to pay tax on pensions, or even tax in both the UK and the country of purchase.

9. Arranging finance

In some emerging markets you may not be able to get a mortgage in the country of purchase and will have to get one in the UK. However, if your mortgage is in the local currency then you must consider the impact of fluctuations in exchange rates.

10. Read the contract

If you are given a contract in a foreign language then ask for a copy in English. Ensure that you read it carefully and are clear on everything, especially the deposit, completion date, what's included in the property price and whether there are any additional charges.

Dermot O'Kane, Director of Property International, offered the following guidance for emerging market hunters: "Identifying and investing in emerging markets requires a lot of market knowledge, particularly as in these ‘hotspots' property prices are governed more by the local buyer than by the overseas one.

"Never assume anything. The key to success in an emerging market is research; look into everything, from finance and taxation to local restaurants and flights.

"When armed with a full knowledge of the area, and you have established what type of property you are after, it is essential to act fast to keep ahead of the game and really capitalise on the country's status as an emerging hotspot."

To find exciting properties in emerging markets, visit our investment property portal: http://investment-property.themovechannel.com/

Picture: Greenwichmeantime.co.uk

Expert hails Brazil's ‘stunning' yields

Jaimie Kanwar — 26/02/2009 09:52:00

Brazilian property can offer some of the best rental yields found in the present economic climate, an expert has claimed...

With many global markets on the brink of recession, Brazil may provide a breath of fresh air for foreign investors keen to enter the property market.

Director of the Azure Overseas group, Frank Crowley, pointed to the South American nation's burgeoning economy based on soaring tourism and growing exports.

He said: "You will never hear me say a bad word about property investment in Brazil.

"The fact that there is still so much new development in Brazil, with new areas ... growing into newly emerging markets - Brazil property investment continues to be a very good idea."

He added that a potential 12 per cent yield on property remained very attractive considering the global economic climate.

Source: www.Axiafx.com

Brazil stakes a claim

Jaimie Kanwar — 25/02/2009 10:38:00

Brazil is one of the few countries in the world currently surviving the global slowdown with a degree of positivity, argues one company...

It would be misleading to say that the credit crunch is not having an effect on the economic fortunes of Brazil, but much of the downturn that is happening there can be attributed to foreign factors.

For example, many of the large industries in Brazil count US customers among their biggest clients. When orders dry up from overseas, it is bound to have an effect, but this appears not to be causing large-scale company failures.

Less severe

As Brazil's economy is to some extent immature compared to many of the major economies in the world, it has yet to build up exposure to the high levels of debt that afflict the most developed nations.

Therefore, while it is impossible for a country to be completely untouched by the global slowdown, the downturn in Brazil should be less severe than other countries.

For the overseas property buyer, Brazil presents opportunities for all parts of the market. Investors are attracted by the low entry levels and potential for rentals from the US as well as European visitors.

The most popular resorts in the north-east of Brazil are also only a six-hour flight from the UK, making it as viable a holiday home destination as the Caribbean, Florida or Dubai.

Brazil will be ‘steady'

The newest part of the market, however, is for people who are beginning to see property in Brazil as a way of emigrating away from the UK - and the economic outlook for the country only goes to reinforce that view.

Oliver Watson, regional managing director of international recruitment consultant Michael Page, says, "If you are looking for an overseas opportunity, look for a sound gross domestic product (GDP) and an economy linked to natural resources. Brazil won't see stellar growth over the next year, but it should be steady."

With the north-eastern region of Natal preparing to welcome a David Beckham Soccer Academy, a Rubens Barrichello motor racing school, and facilities for tennis, golf and even polo, there is also the chance to set up home in a place that has some of the best leisure facilities to be found anywhere in the world.

Source: www.buyassociation.com

BRIC investment ‘set to surge'

Jaimie Kanwar — 25/02/2009 10:26:00

Foreign property investment in China and Russia could surge as a result of a new energy agreement...

The economic giants - which form part of the BRIC nations, along with India and Brazil - recently signed an agreement to exchange Russian gas supplies for $25 billion (£17.2 billion) in loans.

According to one expert, the deal represents another step in the growing foreign investment appeal of the nations.

A market analyst at the property group, Obelisk, James Gonzalez, said: "This latest massive deal between Russia and China confirms the economic potential of the BRIC nations.

"The opportunities for growth together with the natural resources in these countries - Brazil also has huge oilfields, as yet unexploited - mean a lot of investment will be focused here this year."

Source: www.axiafx.com