News

Investment Watch: Brazil beats April alternatives

Ivan Radford — Wed, 16 May 2012 15:17:00 GMT

Brazil beat all of April's alternatives, reveals TheMoveChannel.com's latest Investment Watch.

The report, which ranks the level of interest in the portal's listings, saw Brazil work its way back to the top of buyers' lists again last month. A coastal development of new villas in Rio Grande do Norte was the most popular property listing on the site in April, with investors choosing South America's beach houses over an off-plan resort in Mexico and discounted apartments near a golf course in Marbella.

Brazil's offering was nothing new - the same property was TheMoveChannel.com's most popular listing in February - but buyers were attracted once again by the country's booming economy, which offered another place to invest far away from Europe's ongoing financial slump. Indeed, the Brazil listing received over twice as many enquiries as April's second most popular property: a commercial land plot in the UK.

But investors looking for eurozone substitutes also turned to other alternative investments: carbon credits in particular generated a lot of interest, with two separate schemes becoming the fourth and tenth most popular listings on the portal. Fine wine and renewable forestry investments also proved popular, receiving the fifth and eighth highest number of enquiries for the month.

Like Brazil's beach resort, these opportunities have all ranked in the site's top listings before but as global economic uncertainty continues, their popularity appears to be increasing; indeed, this is the first time that four alternative investments have appeared in the Investment Watch Top 10, suggesting a gradual growth in awareness and demand for the sector.

Director Dan Johnson comments: "We've observed the rise of alternative investments in previous months, but the level of interest shown in April indicates that investors are not only becoming more familiar with the range of opportunities available for their capital but are also acting upon it. It's important to note, however, that the alternative listings still received fewer total enquiries than Brazil's beach villas. As the eurozone malaise continues, demand for products such as carbon credits may become stronger, but they still have a way to go to rival the stability and appeal of bricks and mortar."

Cristina Lopo, Marketing Manager of Aspen Woolf, developer of the Pipa Beach Resort, explains the property's appeal: "Pipa Beach Resort has been TheMoveChannel's most popular property listing twice already this year. It's a premium investment opportunity in one of the most amazing locations in the world - and for just 99,800 EUR with spread payments over 4 years.

"Pipa welcomes over one million tourists a year, so buyers can enjoy their property year‐ round both in terms of investment and an unforgettable holiday experience. These attractive conditions are generating remarkable growth and prosperity. With the Brazilian economy growing 5.5% in 2013 and 6.0% in 2014, Pipa Beach Resort is becoming a desirable destination not only for holiday makers, but also international investors around the world."

The Top 10 investment properties for April 2012 are as follows:

Rank	Property	Country	Partner
1	New Coastal Villas, Rio Grande do Norte	Brazil	Aspen Woolf
2	Liquidation of Commercial Land Asset	UK	Obelisk
3	Beach Resort Lots, Quintana Roo	Mexico	AIHG Mexico SA De CV
4	Carbon Credits Scheme	UK	TPG Media
5	Renewable Forestry Scheme	UK	Emerald Knight
6	Tenanted Homes, Georgia	USA	Quality Property International
7	Golf Course Apartments, Marbella	Spain	Target Markets Ltd
8	Fine Wine investment opportunity	UK	TPG Media
9	5* Serviced Apartments, Liverpool	UK	Property Frontiers
10	Carbon Credits Scheme	UK	Strategic Carbon Solutions

Notes to Editors

Founded in 1999, TheMoveChannel.com is the leading independent website for international property, with 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 24 Jack's Place, Corbet Place, Spitalfields, London, E1 6NN.

Brazil welcomes record number of international visitors in 2011

Ivan Radford — Wed, 09 May 2012 11:19:00 GMT

If the latest figures from the Brazilian Tourism Ministry are anything to go by, Latin America's largest country is enjoying a boom in international tourism with a record breaking 5.4 million visitors welcomed in 2011.

According to the Tourism Ministry, international visitor arrivals increased by 5.3% compared to 2010 with the number of visitors from within the continent rising from 2.384 million in 2010 to 2.628 million in 2011. Visitors from neighboring Argentina increased by 13.9% alone compared to 2010.

Brazil's wealth of cultural, gastronomic and environmental attractions also drew visitors from all over the world with Russian tourists up by over 40%, the lucrative Chinese visitor up by nearly 48% and Indian and South African guests up by 14% and almost 7% respectively in 2011.

Dean Thomas, MD of DLT Property, developers of coastal resort Palm Springs Natal, comments:

"Over the last decade Brazil has steadily attracted around 5 million international visitors annually but the hard work of state-run tourism agency Embratur in promoting Brazil and its delights to the world has clearly paid off.

"It is wonderful to see not only other Latin American nations visiting Brazil but also tourists from all over the world touching down to sample the sun, sea, sand and samba this wonderful nation is known for. It is testament to Brazil's appeal that even in a recession visitor arrivals from Europe were also up in 2011 to 1.62 million."

With tourism playing an ever more important role in the Brazilian economy contributing 3.3% to national GDP in 2011 and accounting for 2.9% of employment and the nation aiming to be one of the world's top 5 tourist destinations by 2022, the Brazilian government is investing heavily in infrastructure and hotels to accommodate additional visitors.

As hosts for the 2014 FIFA World Cup, a total of R$33 billion will be invested in infrastructure and 700,000 jobs created directly and indirectly connected to the event. Over 600,000 international visitors are expected and 3.1 million domestic tourists will travel between cities and states to watch the games. The 2016 Olympic Games will provide a further boost to the Brazilian tourism market with some experts suggesting that it could stimulate the economy by some R$250 million.

Dean Thomas concludes:

"This is a very exciting time for Brazil. In the face of global economic uncertainly, Brazil has not only survived but thrived, it is now the fastest growing economy in the world having overtaken the UK as the 6^th largest in the world and with more international tourists than ever before setting foot on Brazilian soil, the outlook for 2012 and beyond remains very positive. I certainly believe that Brazil has proven itself and now is the time to invest."

Land in Brazil is "affordable option" say experts

Ivan Radford — Thu, 03 May 2012 13:34:00 GMT

land in Brazil is a "low entry, affordable way" into the market, according to experts.

Managing director of DLT property Dean Thomas explained that for those looking to join the Brazilian real estate boom, land in an up-and-coming area could be the easiest option for investors keen to avoid the towns where house prices have exploded.

Brazilian property in the top seven districts increased in value by 25 per cent last year, according to Capital Economics, while Rio de Janeiro's prices have soared by 140 per cent since 2008.

Rio Grande do Norte, one of the country's busiest markets for both tourism and real estate, is "not as established" as places such as Sao Paulo or Rio, Thomas adds, making it a sensible investment for overseas buyers.

Is Natal’s Zona Norte Brazil’s new hotspot?

Ivan Radford — Wed, 02 May 2012 11:01:00 GMT

Brazil may have a new hotspot for property, according to one agent.

Zone Norte in Natal has "huge opportunities", Obelisk International has declared, with over 300,000 Brazilians moving to the city - and its expanding suburb - in recent years.

As the number of middle-class citizens rockets upwards, Zone Norte has become their go-to destination, with new businesses springing up in the area since 2007.

Dean Thomas, managing director of North-East Brazil developer DLT property, told Property Showrooms that Brazil remained an attractive market: "Strong economic growth, a rapidly increasing middle class [and] increased consumer spending [are some of the reasons why people are investor in Brazilian property]."

Bank lets Brazilians send more money overseas

Ivan Radford — Fri, 20 Apr 2012 11:36:00 GMT

Brazil's Central Bank has doubled the amount of money that citizens can transfer overseas as wealthy Brazilians continue to buy up property abroad.

While Brazil's currency stays strong in the country's booming economy, more buyers are entering foreign markets than ever before, with investors pouring into Miami and Florida. Now the Central Bank has upped the levels they can transfer through brokers, Brazilians are spending big.

"We had a pent-up demand because we had to reject all customer transactions over $50,000," one Sao Paolo brokerage firm told OPP.

"We had expected a maximum increase of 30% [in transactions], but growth has exceeded our most optimistic expectations and we had a growth of 40%... We hope this figure goes to $200,000 soon. It'll happen. It's a breakthrough in Brazil."

Brazilian homebuilder loses $598m

Ivan Radford — Thu, 19 Apr 2012 12:37:00 GMT

Brazil's fifth-biggest homebuilder lost $598m last year.

Despite the country's booming property market, Gafisa posted the loss earlier this month, surprising many in the real estate industry. The company named the cause of the loss as the cancellation of 4,000 mortgage contracts, as low-income buyers became ineligible for loans.

"Gafisa has been restructuring its subsidiaries for the past 12 months," according to World Property Channel. "Its main focus has been on repositioning [low-income housing arm] Tenda which it acquired at the end of 2008. The company had gambled on increasing its share of the market but the gamble failed."

The company said in a statement that Tenda would "less aggressive" this year.

Investment Watch: Dial M for Miami

Ivan Radford — Wed, 18 Apr 2012 13:35:00 GMT

Photo credit: vgm8383

Investors dialled "M" for Miami in March, reveals TheMoveChannel.com's latest Investment Watch. The report, which ranks the monthly level of interest in the portal's listings, saw the Magic City's tenanted condos take top spot, knocking Brazil's February high-flyer down into ninth place.

Investors dialled "M" again for Murcia and Malaga, as Spanish golf resorts took fifth and seventh place respectively in last month's top 10 listings. An equal share of the chart went to buy-to-let opportunities in the UK, with Leicester student accommodation and Cumbrian apartments awakening investors' appetites in eighth and sixth place.

But even though British real estate accounted for five of the top 10 listings in March, TheMoveChannel.com undoubtedly belonged to Miami; the Florida condos received 50 per cent more enquiries than their closest runner-up, a discounted plot of commercial land in England, as the promise of high yields and low prices proved too tasty for investors to resist.

Investors dialling "Mmmmm", however, found a tasty new opportunity in London, as fine wine entered TheMoveChannel.com's listings for the very first time. The drink was downed by enough buyers to become the third most popular investment last month, ranking above even a five-star resort in the Algarve.

Combined with the continuing demand for carbon credits, the unexpected thirst for fine wine suggests that while investors in March were dialling "M" for Miami, they were also pressing "A" for alternative investment.

Director Dan Johnson comments: "Fine wine has never been listed on TheMoveChannel.com before, but the response has been a real surprise. At the start of 2012, the demand for carbon credits suggested that investors were starting to consider more unorthodox investment vehicles for their capital. Since then, carbon credits have been in our top 10 listings for three months in a row. Miami remains the top US destination for property, but it looks like alternative investments are becoming an equally consistent choice."

The top 10 investment properties for March 2012 are as follows:

Rank	Property	Country	Partner
1	Miami tenanted condos	USA	Aspen Woolf
2	UK commercial land	UK	Obelisk
3	Fine wine investment opportunity	UK	TPG Media
4	Five-star coastal Algarve resort	Portugal	Hot Property deals
5	Murcia golf resort apartments	Spain	Casacalida Property Group
6	Tenanted Cumbrian apartments	UK	Best Overseas Property Investments
7	Malaga golf resort apartments	Spain	Best Overseas Property Investments
8	Leicester student accommodation	UK	ROC Invest
9	Luxury townhouse, Rio Grande do Norte	Brazil	Aspen Woolf
10	Carbon credits	UK	Strategic Carbon Solutions

Notes to Editors

The website address is http://www.TheMoveChannel.com and the office address is 24 Jack's Place, Corbet Place, Spitalfields, London, E1 6NN.

Contact Dan Johnson on 0207 952 7650 for further information.

Savvy global investors eye up Brazilian commercial property opportunities

Ivan Radford — Mon, 16 Apr 2012 14:15:00 GMT

With a flourishing hotel sector as well as booming office and industrial markets, commercial real estate in Brazil looks set to continue growing well into the future with Jones Lang LaSalle Hotels citing that the nation's hospitality sector offers a great deal of prospects for those who wish to invest in Brazilian real estate.

Indeed, with increasing demand for hotels propelled by upcoming global events in Brazil such as the 2014 World Cup and the summer Olympic Games in 2016 as well as the predicted 3.5% GDP growth in 2012 according to Brazilian bank Itau Unibanco which also forecasts a surge to 5.1% growth in 2013, interest in the Brazilian real estate market from global investors is at an all-time high.

Dean Thomas, MD of DLT property, developers of Palm Springs Natal, the unrivalled land, residential and commercial investment opportunity just 25 minutes from Natal in north east Brazil, comments,

"Currently Brazil is the most attractive emerging market for investors according to research released recently by the Association of Foreign Investors in Real Estate (AFIRE). Strong economic growth, a rapidly increasing middle class, increased consumer spending combined with healthy tourism levels means that investing in commercial property in Brazil is certainly the way forward for investors.

"At Palm Springs Natal, there are plenty of commercial opportunities available from bars, restaurants and coffee shops to hairdressers, spas and retail units which will all afford good rental income for investors. In addition to buying plots, Palm Springs can offer the rare opportunity to purchase commercial assets starting from £450,000 for a generous 620 m² plot."

Indeed commercial property volumes in Brazil were one of the highest in the world in 2010 according to Jones Lang LaSalle, while commercial real estate investment in Brazil accounted for 75% of transactions in Latin America in 2011.

Dean Thomas further explains,

"Whether your investment is in housing, offices or industrial units, Brazil offers investors great potential for high returns thanks to growing demand and lack of supply. For those thinking about investing in Brazil, Palm Springs, located just 30 minutes from Natal's international airport in the NE of the country, can offer a variety of investment options whether you want to buy land and build a home or indeed build and operate your own commercial unit.

"We have spent more than 4 years ensuring that all land ownership and use legalities are in place including condominium status for land plots and installing essential infrastructure such as water supplies and sewerage. Palm Springs Natal is designed with the end user, the Brazilian, in mind and as a result 70% of our sold land plots have been to Brazilian nationals."

Video – Maceio: Brazil’s most violent city

admin — Fri, 13 Apr 2012 09:56:00 GMT

Famous for its white sandy beaches, Maceio in northern Brazil is now gaining a less-glamorous reputation.

The city has become the most violent in the country, with murder rates at 109.9 for every 100,000 habitants in 2010. In just 10 years the number of killings has risen by almost 185 percent in this city of some one million residents.

Watch the full report on TheMoveChannel.tv:

http://www.themovechannel.tv/2012/04/video-maceio-brazils-most-violent-city/

Brazil: Latin America's property 'powerhouse'

Ivan Radford — Mon, 26 Mar 2012 12:28:00 GMT

Brazil's position as ‘the powerhouse' of the Latin American property market shows no signs of being challenged in the near future, according to global consultancy PricewaterhouseCoopers.

The company's latest Emerging Trends in Real Estate report 2012 found that Brazil's 2012 GDP growth will be well ahead of Europe and USA. As a result property prices are spiking, with prices per square foot for apartment condos in São Paulo and Rio de Janeiro now exceeding those in Washington and New York.

"Brazil is going from strength to strength. It is undoubtedly the most powerful country in Latin America right now and is looking less and less like an emerging market every day," Dean Thomas, managing director of agents DLT property comments.

"The growing economic superpower is a budding financial hub teeming with natural resources and commodities as well as billionaire tycoons. Brazil is currently one of the best property investment destinations in the world and as a result" he added.

Source: A Place in the Sun

Investment Watch: Brazil bags buyers’ bucks

Ivan Radford — Wed, 21 Mar 2012 11:58:00 GMT

Image: Mauro Paim

Brazil bagged buyers’ bucks in February, reveals TheMoveChannel.com's latest Investment Watch.

The report, which ranks the monthly level of interest in the portal's listings, found an overwhelming majority of investors were attracted to the South American country, with Brazil accounting for four out of the 10 most popular properties on the site in February.

The dominance of Brazil follows its recent ranking as the sixth biggest economy in the world, beating Britain. The country’s combination of a large population, stunning natural resources and upcoming sporting events saw people clambering to invest in a range of real estate opportunities, pushing last month’s top Disney properties down into seventh place.

While Florida’s low-priced homes are clearly still in demand, Brazil left them far behind; the most popular listing on TheMoveChannel.com in February was a North-East beach resort, which received over three times as many enquiries as the Disney development. Investors were equally interested in Brazil’s Minha Casa Minha Vida scheme, with a social housing project in Minas Gerais promising high returns on a plot of land as the government tries to meet the country’s booming demand for property.

But nothing could rival Natal, Rio Grande do Norte’s capital and one of the host cities for the 2014 FIFA World Cup. A UK carbon credits scheme in fourth place demonstrates that buyers are still keen to take a punt on alternative investments but in a table of two halves, not even a luxury development in central Prague and the glamour of Portugal’s new Radisson Hotel could score against South America’s footballing nation.

The country’s economy is now ranked sixth in the world but in February’s investment shootout, Brazil was undoubtedly number one.

The Top 10 investment properties for February 2012 are as follows:

Rank	Property	Country	Partner
1	New Beach Resort, Rio Grande do Norte	Brazil	Aspen Woolf
2	Land Development, Minas Gerais	Brazil	Obelisk
3	New Resort, Rio Grande do Norte	Brazil	Aspen Woolf
4	Carbon Credits Scheme	UK	Strategic Carbon Solutions
5	The Radisson Hotel, Faro	Portugal	Saffron VIP Limited
6	Social Housing Investment, Rio Grande do Norte	Brazil	RW Invest
7	Disney Pool Townhouse, Florida	USA	Starfish Property Investments
8	Beachfront Apartment, Devon	UK	Green Parks Holidays Ltd
9	Central Park, Prague	Czech Rep	Professionals SRO
10	New building plot, Hampshire	UK	Landmark Developments

Property bubble burst 'unlikely' in Brazil

Ivan Radford — Mon, 19 Mar 2012 09:47:00 GMT

With prices continuing to rise in Brazil and the country’s economy booming there is concern that something might crash at some point but real estate experts do not believe that the property market will burst.

Spain, Bulgaria, Dubai, Ireland and the United States have each experienced a severe property boom and crash but Samantha Gore, sales manager at Brazil property specialists uv10 believes there are few fears for the real estate market.

‘There have been some significant double digit percentage price hikes in Brazilian property over recent years but, instead of crashing, the consensus is that values will take a more modest path of growth,’ she explained.

When Reuters polled 15 banks, research groups and business associations at the end of 2011, nine said prices would rise between 5 and 10% in 2012 and one other said they’d exceed 10%. And, while most concurred that price hikes would cool as 2012 progressed, none of those surveyed believed prices would fall.

‘Brazilians are buying homes to live in, not to speculate on, which eliminates many of the factors that caused property crashes in other parts of the world,’ said Gore.

There are few fears surrounding Brazil’s rapidly growing mortgage market and the country is unlikely to fall into the toxic subprime lending trap of the United States. One reason is that despite growth Brazil’s mortgage market is still minuscule. According to the Brazilian Association of Home Loan and Savings Banks, outstanding loans make up just 4.8% of GDP versus a figure of 95% of GDP for the US in 2010. Banks will not end anything as high as 100% and non residents are still excluded from securing finance in Brazil.

Since 2003, more than 30 million Brazilians have officially entered the middle class enhancing their ability to afford housing and the finance it entails. Minimum wages have risen sharply, social housing programmes such as Minha Casa Minha Vida have taken effect and unemployment is at an all time low of 5%, compared with 23% in Spain.

Those who have historically rented are now buying and demand is so great, estimates of Brazil’s property shortfall range between 5.6 and 10 million homes, that prices are naturally and reasonably moving upwards.

Gore pointed out that the economy is also holding up well and, after a brief period of contraction in 2011, the Central Bank predicts GDP growth to be 3.27% in 2012 and 4.2% in 2013.

Most experts agree that the 2014 FIFA World Cup and 2016 Olympics will boost the economy further. ‘Property investors would be hard pushed to find such stability and potential for growth elsewhere,’ added Gore.

Brazil property investors celebrate bumper year

admin — Fri, 09 Mar 2012 09:40:00 GMT

Property investors in Brazil had a fiesta last year as house prices jumped by 26.3%, while buyers in Ireland watched prices slump by a further 16.7%.

Brazil was the standout success in the Knight Frank global house price index with more than double the increase experienced by the second-fastest growing country, Estonia (up 12.3%). The other top five risers were Hong Kong (up 11.3%), India (up 11.1%) and Slovenia (up 10.1%).

Knight Frank said Brazil's "remarkable performance is being fuelled by strong population growth, rising household wealth and an expanding mortgage market."

Overall global property prices were up 0.5% in 2011. The bottom 12 performing countries were all in Europe, with Ireland leading the way down 16.7%, followed by Cyprus, Russia, Ukraine, Spain and Jersey. The UK came mid table with a 1.1% rise.

Source: Guardian.co.uk

Brazil's economy outstrips Britain to become sixth largest in the world

admin — Wed, 07 Mar 2012 11:37:00 GMT

The emerging market’s economy grew 2.7 per cent last year, compared to the UK's 0.8 per cent, to become the world's sixth largest.

Brazil’s total output in 2011 was worth £1.56trillion compared to Britain’s £1.53trillion.

The country's finance minister Guido Mantega, played down the importance of the figures, saying: 'It is not important to be the world's sixth-biggest economy, but to be among the most dynamic economies, and with sustainable growth.'

The figures show the South American country closing in on France and Germany; however they still remain a long way off market leaders USA, China and Japan.

Source: Metro.co.uk

Banking on BRICS and Mortar: Brazil house prices grow up to 20pc

Ivan Radford — Wed, 29 Feb 2012 15:11:00 GMT

The BRIC nation of Brazil remains one of the best performing housing markets in the world according to the latest worldwide survey of house price indices from the Global Property Guide.

The latest report revealed that house prices surged by almost 20% in 2011 in Sao Paulo, Brazil while the city was one of only a handful which saw house prices rise in the fourth quarter, increasing by 3.93%.

Matthew Montagu-Pollock, Editor of Global Property Guide comments,

"The strong performance of Brazil's property market reflects several factors, including a very strong domestic economy, which remarkably experiences very little exposure to global economic fluctuations. Many people have forecast that Brazil's boom will come to an end, but there is little sign of that happening at the moment."

Indeed, Brazil is fast becoming a Sound property investment choice thanks to its affordable cost of living, great weather and strong capital appreciation and is performing exceptionally better than many European nations.

Dean Thomas, MD of DLT property, developers of Palm Springs Natal, the unrivalled land investment opportunity in north east Brazil, comments,

"The Global Property Guide statistics show that many of the countries that did not fare so well in 2011 were located in Europe. For example, the UK witnessed a 3.39% drop in prices, Portugal experienced a 7.78% decrease, Spain's house prices also dropped by 9.27% and Greece by 10.43%. Sadly, it seems that Turkey's bubble may have finally burst after it too witnessed a drop in house prices at -1.73%.

"In contrast with this trend, Brazil is definitely rising up in the property ranks. Having overtaken the UK to become the sixth-largest economy in the world and with the minimum wage of the Brazilian population rising by around 10% in 2011 domestic tourism and consumption has been heightened throughout the country."

Given that both Brazil's economy is flourishing and its property market is performing strongly, Brazil as an investment destination presents one of the most exciting opportunities available today with Palm Springs Natal affording the latest unrivalled investment opportunity.

Having spent four years ensuring that all land ownership and use legalities are in place including condominium status and installing essential infrastructure such as water supplies and sewerage, as well as already selling 20% of the land plots to Brazilian nationals, Palm Springs Natal is designed with the end user, the Brazilian in mind.

From traditional ostrich farmland to 453 fully serviced freehold land plots set over 100 acres of beachfront real estate 20km from Natal international airport there are a variety of investment options available from as little as £10,000.

Debt Levels of Brazil´s mainstream property developers

admin — Fri, 24 Feb 2012 09:37:00 GMT

A recent report produced by Fernando Ferreira de Araujo Souza – research specialist and engineer at the Real Estate Research Group at the Polytechnic School, University of São Paulo – pointed to the fact that Brazilian construction companies listed on the BM&F Bovespa have reached unprecedented levels of debt since being established on the capital markets; whilst they have grown eight in terms of gross operating revenue and six times in equity balances since 2006, the average debt burden has multiplied 21 times.

In 2006, the aggregate net equity levels of companies totaled R$ 5.9 billion with 54 percent of investment being financed from the companies own capital stocks and 46 percent from third parties. Via debentures and finance using the Housing Finance System (Sistema Financeiro de Habitação, SFH), the companies ended the year with a debt burden of R$ 1.4 billion – representing gross and liquid debt levels of 25 percent and -15 percent of net equity respectively (the companies had sufficient cash resources for payment of the debt).

In the 12 months up to quarter 3 in 2011, net equity levels had grown to R$ 36 billion with the percentage of own capital resources falling to 30 percent and those of third parties growing to 61 percent. The gross and liquid debt levels as a proportion of net equity grew to 87 percent and 59 percent respectively – 3.7 times more than the capacity to generate operational cash flow as measured under the ebitda concept (earnings before interest, taxes, depreciation and amortisation). These statistics essentially mean that it would take almost four years of cash flow generation to pay debts owed.

Source: BrazilInvestmentGuide.com

7 out of 10 Brazil social housing projects at a standstill

admin — Wed, 22 Feb 2012 10:15:00 GMT

A public audit undertaken by the General Union Controller (Controladoria Geral da União, CGU) of signed popular housing contracts between 2004 and April 2011 under the command of the Brazilian Housing Secretariat (Secretaria Nacional de Habitação, SNH) / Ministry of Cities (Ministério das Cidades) recently pointed to a noticeably high number of delayed, paralysed and non-started projects throughout the country.

Of the 4,243 contracts signed as part of the Growth Acceleration Programme (Programa de Aceleração do Crescimento, PAC) to improve favela communities and base of the pyramid housing-related infrastructure with an investment value of R$ 12.5 billion, 74 percent have been granted yet not moved forward as originally desired (note these are projects independent of the Minha Casa, Minha Vida initiative which – as regularly discussed on this blog and across the Brazilian media – is rife with its own execution issues).

With the investigation still being underway, housing secretary Inês Magalhães publically acknowledged the problem and indicated that the main issues are related to delays brought by licensing procedures, environmental regulations, land approvals and the slow responses by municipal governments to local infrastructural needs. “It is not uncommon for there to be just one engineer who looks after all of the developments happening in a particular city,” she commented. It was also stated that the delayed progress has a lot to do with the complexity of improving favelas, particularly with regards to installations such as sanitation, urbanised infrastructure and environmental recuperation which – according to Magalhães – will now be a “priority for the Dilma Rousseff government.”

Source: BrazilInvestmentGuide.com

Brazilians pouring into NYC real estate, say agents

admin — Wed, 22 Feb 2012 03:33:00 GMT

Brazilian overseas property buyers are surging into New York says local agent Marcus Cohen, a broker at agency Prudential Douglas Elliman in the city.

Cohen told OPP this week that he has closed more than 15 deals with Brazilian buyers in the past two years, ranging from $5 million to $15 million.

The usually opt for apartments in Manhattan, he says. “For many, Manhattan is their dream town.” Popular locations, says Cohen, are the Upper East Side and the district around the Lincoln Centre.

The buyers are mainly finance professionals and commodity brokers in their 30s and 40s. They regard a Manhattan apartment as the ultimate status symbol, say local agents, and will often bring in their own architects and interior design teams.

Source: OPP.org.uk

Carnival gets Brazil economy in the spirit

Ivan Radford — Mon, 20 Feb 2012 13:45:00 GMT

All eyes are on Rio de Janeiro at the start of this week with tourists eager to experience one of the most spectacular shows on the planet, the Rio de Janeiro Carnival.

Bustling not only with foreign travellers from every corner of the globe, an increasingly large number of Brazilian holiday makers will be in attendance determined to enjoy the greatest street party on earth. Domestic tourism has more than doubled since 2004, according to the Ministry of Tourism, and is considered to be having one of the biggest positive impacts on the nation's thriving economy.

Since 2003, more than 30 million people have managed to pull themselves out of poverty in Brazil and with more disposable income, the direct effect on levels of internal travel has been dramatic. In fact, Brazil's Ministry of Tourism identified that the number of Brazilian passengers landing at the country's airports reached almost 69 million in 2010, an increase of 18% on 2009. This is the largest upturn ever experienced.

Dean Thomas Managing Director of the developer of Palm Springs Natal, a land investment opportunity that includes traditional ostrich farmland and freehold land plots set over 100 acres of beachfront real estate, comments:

"Whilst there has been well documented and considerable growth in international booking enquiries to the nation during the last quarter according to HomeAway.co.uk with Brazil set to become one of the most popular long-haul destinations, it is in fact domestic tourism that is fuelling economic growth. In support of this, the Union of Hotels, Bars and Restaurants in Rio, has identified that the current average occupancy rate is estimated to reach around 98%. At present, domestic tourists represent 68% of reservations while international visitors represent just 32%."

According to a recent survey from the Ministry of Tourism, 66.2% of Brazilians wish to tour national destinations in Brazil, with the majority of respondents wanting to travel to North Eastern locations first such as the 'City of the Sun', Natal, a regional economic hub and an already established tourist destination both domestically and internationally.

Given that both Brazil's domestic and international tourism sector are flourishing, Brazil as an investment destination presents one of the most exciting opportunities available today.

Getting into the festival spirit?

Browse our listings of land developments, resorts and other Brazilian investment opportunities:

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

Investment Watch: Investors go to Disneyland

Ivan Radford — Wed, 15 Feb 2012 13:44:00 GMT

Photo credit: Michael Huey

Real estate investors went to Disneyland in January, reveals TheMoveChannel.com's latest Investment Watch.

The report, which ranks the monthly level of interest in the portal's listings, saw the majority of investors turn to townhouses two miles from Mickey's home in search of a dream come true. The newest vacation home community in the Disney area, the Florida development was built in 2007 but a price reduction of one-third last month saw investors flock to buy a holiday home with strong buy-to-let potential.

While Florida topped the Investment Watch rankings for the second month in a row, Disney was not the only resort to receive attention, with a Bulgarian ski hotspot and a hotel in Marrakech providing popular commercial opportunities for buyers looking abroad. For buy-to-let investors closer to home, student accommodation in London and Cheshire saw similar levels of demand, taking eighth and ninth place respectively.

But January saw a new investment product climb up the chart.

Plots of land in Brazil and the UK generated lots of interest, but a carbon credits project in Australia emerged as the month's second most popular listing, proving that investors don't need to go to Disneyland to find a happy ending.

The alternative investment programme promised a 30 per cent return and a government-backed exit strategy on a reforestation scheme in Victoria - enough to attract almost double the number of enquiries received by a coastal villa in Murcia with 107 per cent finance.

Director Dan Johnson comments: "The demand for Florida's Disney homes was always going to be high - the combination of location, price and commercial opportunity is hard to beat. The popularity of the carbon credits project is more surprising though. Is this a sign that property investors are starting to consider more unorthodox investment vehicles for their capital? That remains to be seen, but with a variety of alternative schemes hitting the market, 2012 looks like being a growth period for that particular sector.

The Top 10 investment properties for January 2012 are as follows:

Rank	Property	Country	Company
1	Disney Pool Townhouse, Florida	USA	Starfish Property Investments
2	Carbon Credits, Victoria	Australia	Best Overseas Property
3	Below Market Value Hotel, Marrakech	Morocco	Best Overseas Property
4	Buy-to-Let Townhouse, Detroit	USA	Target Market Ltd
5	Land Development, Minas Gerais	Brazil	Obelisk
6	New Building Plot, Hampshire	UK	Landmark Developments
7	Ski Resort Hotel, Pamporovo	Bulgaria	Imagine Overseas
8	Student Apartments, London	UK	Principal International
9	Student Apartments, Cheshire	UK	Principal International
10	Financed Beach Villa, Murcia	Spain	Blue Med Repossessions

Notes to Editors

The website address is http://www.TheMoveChannel.com and the office address is 24 Jack's Place, Corbet Place, Spitalfields, London, E1 6NN.

Contact Dan Johnson on 0207 952 7650 for further information.

Brazilian commercial real estate 'demonstrating resilience'

admin — Fri, 03 Feb 2012 05:25:00 GMT

Brazil's commercial property sector is one of the few in the world to record positive sentiment towards rental expectations and capital value growth during the first quarter of 2012.

According to the Royal Institution of Chartered Surveyors (Rics) Global Commercial Property Survey for the final three months of 2011, Brazil's real estate market has shown resilience in the face of a largely negative picture elsewhere in the world.

Respondents in the country are predicting a rise in rental values, as well as capital growth, in the period from January to March this year. Canada is the only nation where sentiment is more positive in these two respects.

Property professionals in Brazil also anticipate demand from occupiers will continue to outpace the supply of available premises over the next few months.

Source: PropertyShowrooms.com

The Property Inspector: What's in store for 2012?

admin — Thu, 26 Jan 2012 13:46:00 GMT

Photo credit: Snowshot

TheMoveChannel.com's Property Inspector: Taking a closer look at global real estate each month.

As January draws to a close, TheMoveChannel.com's Property Inspector quizzes the agents who received the most enquiries on the overseas property portal last year. They talk exlusively about the successes - and failures - of 2011 and what's in store for 2012.

Is America really recovering? Should buyers avoid Greece? Has luxury property in Portugal had its day? Can Spain's rental yields stay strong? The Property Inspector asks the experts to point investors in the right direction for 2012.

Assetz (Overseas Property)

How would you sum up last year?

"2011 was a year for buyers, not sellers. Returns on investment were mainly represented by rental income rather than capital growth and indeed most markets saw price stability or falls rather than growth. Some markets like Ireland and the US saw further falls, the UK and Dubai saw broad stability but few markets other than London saw strong growth.

"Nonetheless distressed sale prices to investors, rather than high street pricing, have risen in 2011 and in due course we expect high street/ estate agent public facing prices to start rising again. This remains a market where good buys are defined by their defensive income characteristics that can underpin prices."

What do you expect from 2012?

"At Assetz we like to focus on investment rather than speculation when it comes to the overseas property market. Countries such as Spain present an excess of supply meaning that rental income levels can be weak for a long time, hence holding back prices in our view. This provides buyers with potentially low purchase prices, but due to this over-supply, rental yields will be limited and long-term growth would remain speculative depending on a country's economic state farther down the line.

"One of the biggest challenges in 2012 will be the mortgage markets. In Europe we are seeing the beginning of a very bad year for mortgage availability with the new bank capitalisation rules crushing banks' ability to make new loans for at least 2012, if not 2013 and onwards. The US already has a dearth of any finance at all for investors and whilst we do not think Europe will be as bad we still expect problems."

How much risk is there in Europe?

"The greatest risk may be Greece who in our view is the most likely country to leave Europe in due course and if they did their currency could devalue by 50-60% leaving property owners nursing huge losses. Greece is a country to avoid until they exit the Euro and devalue or it becomes clear they never will. "

What about the USA?

"The USA provides a much stronger platform for traditional investors. Due to a large number of foreclosures, coupled with a decline to the point of halting in new builds, property in the USA has dropped significantly in price as it at the best affordability level ever. The concept of supply and demand is key in the US as, with few new homes being built, currently available properties which are heavily discounted, still offer exceptional rental yields as home-ownership has declined from 70% to 60% in just a few years.

"Recent reports regarding key areas of the United States have begun to suggest that we have seen the bottom of the property cycle and are entering a period of slow, but steady growth. 2012 is a significant year in which to invest in the USA."

How are you starting the New Year?

"The rule of thumb remains that safer investments are where substantial rental demand still exists and very limited new supply is forecast. There are not an abundance of these locations but Florida is currently one of them and we have also started to develop a tourist resort in Cape Verde, Santa Monica Beach Resort and Spa, due to the rapidly rising tourist numbers and the almost non-existent property development on the islands creating a perfect supply demand imbalance. True investments are out there, you just need to find them with careful research."

View property at the Santa Monica Beach Resort and Spa in Cape Verde.

Best Overseas Property Investments (Spain / USA)

How would you sum up last year?

"It was good - the market conditions were as good as any I suppose. Primarily in the Costa Del Sol, where we had a number of good projects with 100 to 107 per cent mortgages, good discounts of 10 per cent or more. That's the core of our Spanish business. We do a lot of lifestyle buyers, interested in either very cheap properties or properties with potential for investment."

What do you expect from 2012?

"In December and January we've had about 150 enquiries for Costa del Sol. It's the perfect time to buy property in Spain because of the reductions and the mortgage deals. I read an article somewhere, but about 40 per cent of the new build stock in the Andalucía region has sold in the last 12 months. Banks are a little fussy but they're offering good mortgages."

Can Spain recover from the Euro crisis this year?

"I think Spain will recover tremendously this year. The fact that the number of off-plan and new build properties has reduced so significantly in the last 12 months is going to be good even for retail vendors."

How are you starting the New Year?

"In Spain, we're getting the most interest in Costa del Sol. Mallorca is exceedingly popular, that's our number two area. But a lot of our work is in America, in North Dakota, a development which has gross yields of 47 per cent and net yields of 37.7 per cent. They've worked out how to access the oil there by a process called fracking and there are basically 15,000 miners camped out there in cars and caravans... it's just the best investment that's been on the market for the last ten years."

View properties ready to let in North Dakota.

Aspen Woolf Europe (Brazil)

How would you sum up last year?

"2011 was our best year on record for property in Brazil. With nothing but bad news coming out of Europe, it's been a pleasure to work in a part of the world that's actually booming. Brazil enquiries were up 40% on the previous year so it's clear we're not alone in choosing Brazil as our leading market for investment."

What do you expect from 2012?

"Brazil ended 2011 well, jumping to 6th place in global economic rankings and all the indicators are there for another strong year for growth, maybe even 4%. I think the next 3-4 years will be the key time to take advantage of the property market. Prices are still very affordable - you can get a house close to the beach for under £60k - and some developers will offer financing so you can spread payments over a number of years. After the Olympics in London, the spotlight will be very much on Brazil as they prepare to host the world's biggest events, the World Cup in 2014 and Olympics in 2016."

How are you starting the New Year?

"2012 will be a very strong year for Aspen Woolf with new offices opening in Brazil as we expand our operations outside Europe. We'll be introducing some new low cash-input projects in and around Natal and Fortaleza and we look forward to launching our very own Brazil project in Q2. We've also highlighted 3 other markets which we believe will offer good opportunities in 2012: the US, UK & Turkey!"

View two-bedroom apartments in Brazil.

CSF Property (Portugal)

How would you sum up last year?

"2011 was a steady year for Portuguese property. To give you an idea, in 2009 we had people coming over wanting to borrow 80 per cent, in 2010 that started to change a little bit: more people with more cash. 2011 was more people wanting to take 50 per cent mortgage, 50 per cent cash, but wanting more expensive properties. Towards to the end of 2011, banks started creeping back, lending 70 per cent. Now they're lending 80 per cent again. In the beginning of 2011, we had the bail-out, but it's starting to get better, you know?"

What do you expect from 2012?

"This year, at the start we're selling not so many villas - it's more townhouses."

Has luxury property had its day?

"Yes. There's not a lot moving above £500,000. Albufeira in the Algarve has become more attractive from a price point. Back in the peak of the market in 2006, a nice townhouse was €300,000. You can pick that up now for €220,000. It used to be that a two bedroom apartment was €220,000, so you're getting a house with a pool for the price of a two-bedroom apartment."

How is Portugal responding to the Euro crisis?

"Portugal has been quite sensible. They've raised taxes, they haven't spent as much on Christmas and roads and things like that and we're starting to see some light. "

"We sell property in Spain's Costa del Sol as well and the big thing about the Algarve? There are 54 new developments on the books at the moment, each one with an average size of 40 properties. In the Costa, there are 1,600 developments, each with an average size of 200 units. There's no oversupply here and that's the one thing that's saving the market."

What are your plans for the New Year?

"We've got a frontline beach development we're pushing heavily in Lagos - Lagos was voted the number one place to be by The Independent. We've got the last ever beachfront properties that are new build for sale. There are no more licenses being granted in Lagos for beachfront properties. And they're two-bedroom apartments at €345,000. They're being built at the moment - they're finished in March this year. It's only 20 units, but it's nice. We're taking reservations now. They pay 30 per cent now and pay the other 70 per cent on completion."

View two-bedroom properties in Lagos.

Where are you planning to invest in 2012?

Browse our listings of houses, apartments and other overseas property:

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

Coastal property in north-east Brazil 'popular'

admin — Mon, 23 Jan 2012 13:32:00 GMT

Property located in one of north-east Brazil's beachside destinations is proving to be desirable among real estate investors.

This is the assertion of sales manager for uv10 Samantha Gore, who pointed out that Ponta Negra, a district in the city of Natal, is a sought-after location.

She highlighted its growing popularity among travellers, noting a visit to the beach here was recently placed at the top of a list of things to do in north-east Brazil by travel guide Lonely Planet.

Source: Property Showrooms

Brazil economy rebounds in November boosted by domestic consumer spending

admin — Wed, 18 Jan 2012 10:11:00 GMT

Seasonally adjusted economic activity climbed 1.15% in November from October, the fastest pace in 19 months, the central bank said in a report published on its website Monday.

The increase in economic activity ended three straight months of declines from August through October, the longest contraction since the one that followed the bankruptcy of Lehman Brothers Holdings Inc. in 2008. Since August, President Dilma Rousseff’s administration has cut the benchmark interest rate three times, lowered taxes on consumer goods and eased curbs on credit to try to revive growth and protect Brazil from the European debt crisis.

The non-seasonally adjusted economic activity index rose 0.79% from a year earlier, the central bank said. The yield on the interest rate futures contract maturing in January 2013, the most traded in Sao Paulo Monday, rose two basis points, or 0.02 percentage point, to 10.03 percent in Brazil. The Real appreciated 0.3% to 1.7817 per dollar.

Even so, the central bank is expected to continue to cut borrowing costs at its next two meetings, as “international jitters” following Standard & Poor’s decision last week to cut the ratings of nine Euro-region nations will weigh more heavily with policy makers than domestic data.

Source: MercoPress.com

Brazil: Property investments aplenty but be cautious

admin — Tue, 17 Jan 2012 04:31:00 GMT

People looking to invest in Brazil's property market have plenty of opportunity to do so, but must remain cautious, a developer has stated.

Ruban Selvanayagam, who was writing in the Global Property Guide, explained that a lot of information out there about the property market in Latin America's economic giant was misleading.

"Much caution needs to be undertaken to avoid falling victim to false marketing, hype and the abundance of distorted information that simply does not reflect the truth," he said.

Mr Selvanayagam also went on to say that the growth potential of the South American country's property market is still, in a relative sense, in its early stages.

Source: UV10.com

Video - Brazil overtakes UK economy

admin — Wed, 11 Jan 2012 11:00:00 GMT

Brazil has overtaken the UK as the world’s sixth largest economy, according to a research group.

Watch the full video report on TheMoveChannel.tv:

http://www.themovechannel.tv/2012/01/brazil-overtakes-uk-economy/

Floods in Brazil force thousands to flee their homes

admin — Tue, 10 Jan 2012 05:40:00 GMT

The burst in the dam in Campos dos Goytacazes in Brazil's Rio de Janeiro state was caused by days of heavy rains, which have been battering Brazil's south-eastern region since the beginning of the year.

Mina Gerais and Espirito Santo in southeast Brazil have also been struck by torrential rains in recent days.

Sixty six towns and cities in Minas Gerais have declared a state of emergency with many other areas in the the south-east of the country on red alert.

Brazil's Intergation Minister, Fernando Bezerra said he would make resources available for Rio's officials to handle the worst affected regions.

Source: Telegraph.co.uk

Brazilian residential property prices expected to rise by up to 10pc in 2012

admin — Wed, 04 Jan 2012 09:31:00 GMT

Property prices in Brazil are likely to increase modestly, around 5 to 10%, in 2012 and the real estate sector should avoid a bubble, according to a poll of real estate and financial experts.

The Reuters poll of 15 banks, research groups and business associations downplayed the risk of a sharp downturn, with a recent credit boom underpinned by a steady improvement in wages and affordability conditions.

The rapidly expanding Brazilian middle class is expected to keep a close eye on opportunities to stop renting and move into ownership, holding up prices even after they almost doubled in some neighbourhoods.

‘When the slums disappear and the Brazilian housing sector gets more mature, then prices will stop rising,’ said Andre Perfeito, chief economist at Gradual Investimentos. brokerage.

Source: PropertyWire.com

US remains top bet for real estate investment in 2012 but Brazil gains ground

admin — Tue, 03 Jan 2012 12:15:00 GMT

The United States will remain the top choice of most global commercial real estate investors in 2012, but the country has lost ground to Brazil which ranked second, according to the latest annual survey by the Association of Foreign Investors in Real Estate (AFIRE).

While the United States offers the most stable and secure option in commercial real estate, investors said improvement in rent and occupancy growth and the repeal of a 1980 foreign investment tax would have the strongest impact on their investment decisions, it says.

For about the past year or so, investors in US commercial real estate have focused on gateway cities such as New York, Washington, Boston, San Francisco and Los Angeles, driving prices up and yields down.

Source: Property Wire

Brazil housing market booming 'til 2017

admin — Thu, 22 Dec 2011 05:22:00 GMT

Investors worried about an overheated Chinese housing market need only turn to Brazil. This real estate market has legs. And the recent five year real estate boom there has a good five more years before home values stop appreciating.

“The best way to participate in the real estate boom as an investor at this point to invest in real estate funds in Brazil,” said Marcus Vinicius de Oliveira, executive director of real estate valuation firm Consul Patrimonial.

That kind of comment is smooth bossa jazz to the ears of fund managers like Joel Wells, who co-manages the $356 million Alpine Emerging Markets Real Estate Fund (AEMEX). The fund holds a number of Brazilian home builders and commercial developers. But despite the generally positive long term outlook for Brazil’s housing market, a slower economy and a sovereign debt crisis in Europe has undercut that more positive story line about emerging market housing booms, including those in sunny Brazil. Well’s fund is down 28% year to date.

Housing prices have cooled in recent months, but are rising year over year. Interest rates are falling to single digits once again as inflation begins to ease on account of the global economic slowdown taking its toll on Brazil. That hasn’t stopped the fact that Brazil’s middle class is now the majority of the population for the first time ever and they have money to burn.

Source: Forbes.com

Brazilian social housing fund pounces because the time has come

admin — Wed, 21 Dec 2011 06:06:00 GMT

The investment management group BGB Weston has joined forces with Brazilian international property advisors Origen to market a new “Brazilian Impact Investment Fund” designed to pump money into the second phase of the country’s massive Minha Casa, Minha Vida (MCMV) social housing programme because its “time has come.”

The MCMV initiative, (which translates as My House, My Life) is one of the biggest social housing projects in history, generating more than €65 billion in Brazilian government funds so far. €52 billion has been allocated for Phase 2 alone with the intention of building 2 million homes by 2014 says Origen.

The MCMV programme was launched by the Brazilian government in 2009 with the goal of building 3 million houses to close the existing inequality gap and housing deficit of 10 million homes in Brazil, mainly by supporting qualifying lower class families with 100% mortgages. MCMV is completely financed by Caixa Economica Federal (CEF), which is 100% controlled by the Brazilian state.

To begin with, the fund will focus on the Natal region of Brazil, which has the fastest-growing population, expected to more than double to 3 million by 2016. Natal currently has 70,000 people on the waiting list for social housing, from which 25,000 people have already been approved by the government for mortgages.

Source: OPP.org.uk

Top 10 most extravagant Christmas decorations

Ivan Radford — Fri, 09 Dec 2011 13:09:00 GMT

Photo credit: DRP

As Eurozone worries continue, Christmas cheer can easily depart from the property market. Houses across the continent have had their Christmas lights dimmed to cut costs, with Spanish councils in particular clamping down on displays.

In Madrid, 600,000 fewer lightbulbs have been used this year to decorate the city, reports the Daily Mail, saving 15 percent on last year's electricity bill by reducing it to £2.13 million. Meanwhile, nearby Cuenca has imposed a curfew on Christmas, turning lights off at 10pm instead of midnight. Athens, too, has an overall decorating budget of just £170,000, equalling the amount spent in 2008 on the city's tree alone.

But festive spirit can still be found as some property markets rally from the global recession and homeowners invest in increasingly expensive lights and displays. To bring back some seasonal cheer, here are the 10 most extravagant Christmas decorations around the world:

"The King of Christmas Lights"

Photo credit: PaulToole.org

Paul Toole's property in Somerset has become a popular place for pilgrimage. Tourists and visitors come from across the UK to see the 36 year old's bungalow, which regularly holds 20 minute computer-controlled displays, featuring music, a ferris wheel and 40,000 lightbulbs. At the centre, "a 20ft-tall tree that is made of solid lights", reports The Telegraph.

Brazil's record-breaking tree

Photo credit: Beckstei

As Brazil's economy outperforms Europe, its Christmas display reveals a country brimming with confidence. Decorated with 3.3 million lights, Rio de Janeiro's Christmas tree has been famous since 1996 as the largest floating Christmas tree in the world. Weighing 542 tonnes, the 85-metre construct is towed across the lagoon so that residents in each neighbourhood can enjoy the spectacle.

The Wilson's display of goodwill

Photo credit: Herald-Mail.com

In Chambersburg, USA, The Wilson Family are serious about the season of goodwill. Adding 80,000 separate beams of light to their home, they have decorated the property in memory of Colbie A. Daywalt, who passed away from cancer, aged seven. The Herald-Mail explains that all donations from visitors are given to St. Jude Children's Research Hospital.

The White House

Photo credit: @JuraKoncius

Unveiled to the world last week, the White House decorations for 2011 are the epitome of extravagance, featuring white chocolate gingerbread models of buildings and replicas of the Obama family dog, Bo, in every room. There are 37 Christmas trees in total.

Runton Road's yearly race

Photo credit: Slideshow Bob

While the UK property market may appear glum, in Dorset the outlook is bright. Every year, Runton Road sees a string of houses competing to host the grandest Christmas display. Gardens and rooftops are ritually decked out with inflatable and illuminated ornaments. According to The Daily Mail, the street "even has its own official ceremony to turn on the lights".

Swansea raises the roof

Photo credit: Orange.co.uk

In Swansea, Sylvia Pope has adorned her ceiling with baubles - 1,700 in total. She started decorating the property in September and will continue until she finishes on Christmas Day. Orange reports that she "is now considering leaving them up all year round".

"The Christmas House"

Photo credit: DRP

In Belleville, New Jersey, this property has become known as "The Christmas House" for local residents. The home shows off its impressive array of lights as New Jersey announces plans to have over 22 percent of the state's energy provided by renewable sources within the next ten years.

Rudolph, the two-storey reindeer

Photo credit: Curbed.com

This two-storey reindeer has adorned the front of one American home, spotted by real estate watchers Curbed. But with cheap US homes attracting more and more overseas buyers, novelty inflatable animals are not the only thing on the up.

Baubles bigger than a house

Photo credit: Curbed.com

Other oversized lawn decorations are available for ambitious US property owners. While some states still see many homes underwater, those without fear of foreclosure (Fannie Mae and other lenders have suspended them for the holiday) may choose to purchase these giant gold baubles for $20,000 - although at that price, it is currently cheaper to buy a brand new home altogether.

Cost-cutting in Chicago

Photo credit: DailyMail.co.uk

Chicago's most famous decorated home is now a house owned by Chet Cybulski. His property is lit up every year with extravagant lights and sparkling trees, but was upstaged recently when his next door neighbour followed suit with a lower-budget option. Fortunately for international investors, foreclosures mean that lower-budget options are available throughout the property market.

Would you like a new home to light up your Christmas?

Browse our dazzling listings of houses, apartments and other overseas property:

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

Global housing markets struggling

Ivan Radford — Mon, 05 Dec 2011 11:29:00 GMT

The world's housing markets had a weak third quarter of 2011, according to the latest survey of worldwide house price indices prepared by the Global Property Guide. During the year to end Q3 2011, house prices fell in 25 countries (out of the 44 for which quarterly house price statistics are available) and rose in only 19.

Moreover, 26 housing markets performed more poorly during the year to the third quarter than last year, while only 18 countries performed better.

The Global Property Guide's statistical presentation uses price-changes after inflation, giving a more realistic picture than the more upbeat nominal figures usually preferred by real estate agents.

What is most remarkable this quarter is the wide variety of outcomes:

Brazil and India booming

India and Brazil's housing markets have continued their spectacular outperformance, with Delhi house prices up 22.68% during the year to Q3 2011, according to National Housing Bank (NHB) figures. There were strong house price increases in almost all India's major cities, reflecting the country's current high rate of consumer price inflation, despite a drop in demand resulting from the repo rate hike in October (currently at 8.50%), the 13th since March 2010, making home loans costlier.

Brazil's Sao Paolo had the second highest house price rise in the world during the third quarter, with house prices up 5.88% during the quarter, according to the FIPE- Zap price index. Sao Paolo had an astonishing year, with house prices up 20.26% during the year to Q3 2011. The country is experiencing an unprecedented boom, not least because it is the host country for the World Cup in 2014 and the Olympics in Rio de Janeiro in 2016.

Europe's mixed housing markets

The world's second strongest quarter-on-quarter house price rise occurred in an unexpected city - Vienna, where house prices surged by 5.44% during the quarter (and +4.25% on the year), continuing 6 years of nearly unbroken price rises for Austria's capital.

The Baltics have also performed strongly. Latvia is the third best performer among all reporting countries in our survey over the twelve months to Q3 2011. In Riga, standard type apartments rose 13.31% year-on-year, a quick comeback after a fall of 5.40% in the second quarter.

Following Latvia was Estonia, whose housing market is rallying after three years of terrific losses that began during the onset of the global financial crisis. During the year to end Q3 2011, house prices in Tallinn were up 12.30% with a quarterly rise of 2.71%.

Other European markets which have enjoyed satisfactory increases were Norway (+6.74%), France (+4.80%), and Switzerland (+3.35 %).

Modest house price increases were seen in Slovenia (+0.82%), Iceland (+0.76%), Germany (+0.66%) and Luxembourg (+0.55%) in the year to Q3 2011.

Ireland stays weak

The Irish housing market remains the world's weakest performer. House prices were down 15.61% year-on-year, the steepest decline since 2008. Quarter-on-quarter, Ireland's house prices slid 4.25%.

Several other European housing markets experienced accelerated downturns during the year ending in the third quarter of 2011, including Netherlands (-5.20%), Portugal (-6.77%), Slovak Republic (-7.94%), Warsaw, Poland (-7.95%), Spain (-8.41%) and Bulgaria (-9.65%).

Conversely, European countries which saw slower house price falls this year than the previous year include Turkey (-0.50%), Russia (-3.47%), Croatia (-4.59%), Hungary (-4.67%), Athens, Greece (-6.57%) and Kiev, Ukraine (-7.02%).

Asian housing markets now cooling

In Asia, several countries had house price increases during the year to end Q3 2011, albeit less strong than last year, following the government measures to curb the heat in their respective housing markets.

In Hong Kong, house prices were up 12.07% year-on-year, after a rise of 19.30% the previous year. In Malaysia, house prices rose by 3.15% year-on-year, after a rise of 5.76% during the same period last year. In Singapore, house prices rose by 2.73% year-on-year, a big drop from last year's 18.96%. In Taiwan, house prices were up a mere 0.46% year-on-year, after a rise of 6.97% during the same period the previous year. During the latest quarter, house prices were down 7.02%.

However, housing markets in South Korea and Philippines (Makati CBD) improved from a year earlier with price rises of 1.55% and 0.89%, respectively.

In Japan (Tokyo) and China (Shanghai), housing markets have been deteriorating since Q1 2011. House price declines are being reported across China, indicating the success of government measures during the past year. The country's skyrocketing housing prices have been blamed for social tensions and other economic problems.

Patchy progress for North America

The Canadian housing market has been a notable performer in the year to Q3 2011, with house prices in the six cities rising by 3.25% year-on-year, according to Teranet - National Bank Composite House Price Index. Record-low interest rates and a fairly stable Canadian economy have bolstered consumer confidence in the housing market. During the third quarter, house prices were up 3.46%.

In the United States, the housing market drifted lower as house prices plummeted by 7.22% (seasonally-adjusted) year-on-year to Q3 2011, according to the Federal Housing Finance Agency (FHFA). However, the number of homeowners who owe more than their homes' worth decreased modestly in the third quarter, though levels remained high.

Israeli house price boom now over

House prices in Israel fell 0.58% in the year to Q3 2011, the first drop since 2009. During the latest quarter, house prices were down 3.65%.

The moderation in home prices comes against the background of the continued increase in the number of building starts, the lagged effect of the increase in the interest rate, measures introduced by the Bank of Israel affecting mortgages, and steps taken by the Ministry of Finance in real estate taxation. The effect of these moves is expected to continue and be evident going forward.

Pacific housing markets heading down

In New Zealand, median house prices were down 4.30% from a year earlier, with a quarterly house price fall of 2.26%. However, there is optimism in the housing market buoyed by low interest rates and recovery following earthquakes in Christchurch.

High interest rates and global economic uncertainty have continued to impact the Australian housing market, and it slumped 5.55% in the year to Q3 2011, the third quarter in which annual house price falls were reported this year.

Accordingly, the Reserve Bank of Australia (RBA) lowered the benchmark interest rate in November, the first time since April 2009, moving to boost the nation's economy amid uncertainty stemming from Europe's debt crisis. The benchmark rate is currently at 4.50%.

Foreclosures set to rise as euro woes continue: RICS

admin — Mon, 28 Nov 2011 08:23:00 GMT

The global supply of distressed property is set to rise through to the end of the year as economic turmoil in the Eurozone lingers, according to RICS' latest Global Distressed Property Monitor.

In Europe commercial property markets find themselves facing increasingly downbeat conditions, and negative sentiment is spreading across the globe, with almost three-quarters out of the 25 countries surveyed anticipating rising levels of foreclosure in the coming quarter. Most importantly, property professionals who answered the survey expect that supply will outstrip demand in 60% of the countries covered by the survey, a sharp 20% increase compared to Q2.

On the bright side, commercial real estate markets in China and Brazil are still prospering, with both countries expecting the number of foreclosed properties coming to the market to decline over the near term. In Europe, Germany and Russia also remain fairly stable in spite of high levels of economic uncertainty. In Germany, interest in distressed properties rose slightly from July to September with respondents predicting that the number of foreclosures coming to the market is expected to stabilise over the coming months. In Russia, while levels of demand by specialist funds fell during Q3, the supply of distressed properties is also expected to decline from now until the end of the year.

Source: Property EU

BRIC economies should move to the top table

admin — Fri, 25 Nov 2011 05:20:00 GMT

The man who coined the acronym “BRIC” for the economies of Brazil, Russia India and China in 2001, Jim O'Neill of Goldman Sachs, thinks that the group should no longer be considered as "emerging" economies but rather as "growth" economies and that they should be given a place in groups like the G20.

"Our updated research suggests that China's economic output – its gross domestic product – could match that of the US as early as 2027, and perhaps even sooner," O’Neill now says.

And, “since 2001, China's GDP has risen fourfold, from $1.5 trillion to $6 trillion [£949bn to £3.7trillion] Economically speaking, China has created three new Chinas in the past decade. And it's likely that the combined GDP of the four BRIC nations will exceed that of the US sometime before 2020."

He argues that unless the BRICs are embraced more fully by the powers that now dominate the world's economic policy councils, the international business community will not be able “to enjoy the full benefits of their growth."

Source: OPP.org.uk

Brazil gets added bite from Breaking Dawn

Ivan Radford — Mon, 21 Nov 2011 12:26:00 GMT

Photo credit: CasaSugar.com

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

Brazilian property market 'grew in Q3'

admin — Mon, 14 Nov 2011 08:46:00 GMT

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 — Fri, 11 Nov 2011 05:03:00 GMT

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 — Mon, 07 Nov 2011 09:18:00 GMT

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 — Tue, 01 Nov 2011 06:06:00 GMT

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/

Brazil bug spreads as interest becomes infectious

Ivan Radford — Mon, 31 Oct 2011 12:15:00 GMT

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

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

admin — Wed, 26 Oct 2011 07:10:00 GMT

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 — Fri, 21 Oct 2011 06:40:00 GMT

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 — Mon, 03 Oct 2011 10:11:00 GMT

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

Brazil tourism boom boosts housing demand

admin — Wed, 14 Sep 2011 11:16:00 GMT

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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Sao Paulo prices shoot up by nearly 20 per cent

admin — Fri, 09 Sep 2011 08:06:00 GMT

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 — Mon, 22 Aug 2011 10:02:00 GMT

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 — Fri, 19 Aug 2011 07:04:00 GMT

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 Grande do Norte most sought after property destination in Brazil

admin — Thu, 18 Aug 2011 10:16:00 GMT

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 — Tue, 16 Aug 2011 11:43:00 GMT

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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Rio de Janeiro offers "good" options for property investment

admin — Thu, 11 Aug 2011 06:52:00 GMT

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 — Wed, 10 Aug 2011 06:18:00 GMT

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 — Thu, 28 Jul 2011 06:04:00 GMT

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 — Wed, 20 Jul 2011 05:09:00 GMT

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 — Thu, 14 Jul 2011 12:00:00 GMT

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 — Mon, 11 Jul 2011 11:42:00 GMT

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 — Wed, 29 Jun 2011 10:02:00 GMT

“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 — Wed, 15 Jun 2011 07:34:00 GMT

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 — Fri, 10 Jun 2011 07:11:00 GMT

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 — Thu, 09 Jun 2011 07:04:00 GMT

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 — Mon, 06 Jun 2011 11:38:00 GMT

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 — Thu, 26 May 2011 07:02:00 GMT

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 — Wed, 25 May 2011 06:59:00 GMT

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

Brazilian economy achieves highest growth in 25 years

Dan Johnson — Tue, 24 May 2011 10:38:00 GMT

GDP figures for 2010 show Brazil has achieved the highest economic growth in 25 years and could place the country among the world's top five economies.

According to numbers released yesterday by the Brazilian Institute of Geography and Statistics (IBGE), the GDP at the Latin American powerhouse increased 7.5% last year, or R$ 3.67tr ($2.2tr), a record high since 1986.

Sectors such as agriculture and manufacturing industries played a large role in the increase, with yearly growth reaching 6.5% and 10.1% respectively.

Brazilian Finance Minister Guido Mantega was quoted as saying that that further revision in World Bank and the International Monetary Fund (IMF) figures could position the country as the world's fifth largest economy, ahead of the UK and Italy.

Economic indicators recently seen in other developed nations pale in comparison: the US economy posted a rise in GDP figures for 2010 of only 2.9%, while Germany achieved 3.6% and Japan, 3.9%.

Other countries have seen barely any growth: Italy is an example, where GDP saw a 1.1% increase. Some, like Spain, have not seen growth at all and Greece posted a negative rate of -4.5%.

Among the Bric economies, Brazil ranked third, behind India, where growth reached 8.6% and China, where GDP figures rose by 10.3%. Russia had the poorest result, with a 3.8% increase.

The news of the rise in Brazil's GDP coincide with the visit of IMF's director-general Dominique Strauss-Kahn to president Dilma Rousseff and finance minister Mantega yesterday.

Analysts expect that GDP growth in Brazil will reach approximately 4-5% in 2011.

Source: Itdecs

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

admin — Tue, 17 May 2011 07:46:00 GMT

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 — Tue, 10 May 2011 07:56:00 GMT

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

Major US airlines step up Brazil services

admin — Wed, 04 May 2011 11:52:00 GMT

Two of the United States' major airlines have applied for permission with the Department of Transport to increase services to Brazil by up to 10 flights a week, in a move that would bring a huge influx of American tourists to the booming nation.

American Airlines has proposed to step up its flights from Miami to both the capital of Brasilia and the southeastern city of Belo Horizonte, providing a daily service from its Floridian transport hub to both airports. It would also add a new route to Manaus, capital of the Amazon region.

Low-cost carrier Delta has also applied to the Department for nine new flights out of its main base in Atlanta. The extra services would see a daily connection between the Georgian city and both Sao Paulo and Manaus.

The onslaught of US air passengers is expected to further increase in the coming months, with the signing of a new agreement between the Brazlian and United States governments allowing the full liberalisation of air traffic between the two countries. Delta and American are expected to be the first of many US airlines to increase their services to Brazil, as tourist interest begins to spike in the lead-up to the Olympics and the World Cup.

Interested in property in Brazil?
Browse our listings of apartments, houses and other properties for sale in Brazil here: http://brazil.themovechannel.com/property/all/

'Literally millions' of Brazilians plan to buy property

admin — Tue, 19 Apr 2011 08:33:00 GMT

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 — Mon, 11 Apr 2011 12:33:00 GMT

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 — Fri, 01 Apr 2011 11:56:00 GMT

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 — Thu, 24 Mar 2011 12:22:00 GMT

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 — Tue, 22 Mar 2011 11:58:00 GMT

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 — Fri, 18 Mar 2011 12:42:00 GMT

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 — Fri, 11 Mar 2011 11:07:00 GMT

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 poised to enter top five world economies

Sarah Kendell — Fri, 04 Mar 2011 10:03:00 GMT

It is one of the world's fastest growing economies, and as the latest figures demonstrate, Brazil shows no signs of slowing down. While investment continued to flow into the country last year, the South American nation's economy grew by 7.5%, its fastest pace in 24 years, putting its current GDP at $2.1 trillion.

Brazilian Finance Minister Guido Mantega stated that further revision in World Bank and IMF figures was likely to push the country up two more spots. "If we consider prices and purchasing power, a pending homework from the World Bank and IMF, Brazil's GDP is $3.6 trillion, which places us in fifth place ahead of France and the UK", said Mantega.

Growth in local agriculture and manufacturing industries played a large role in the increase, while overall investment in the nation increased by a huge 21.8%. Concern is growing, however, that the Brazilian economy may 'overheat' in the style of Ireland or the UAE, prompting calls from IMF Managing Director Dominique Strauss-Khan to reign in growth levels.

The Brazilian government has acted promptly to cool inflation and growth rates, however, with the Central Bank having increased interest rates by half a per cent earlier this week. President Dilma Rousseff stated her administration would maintain "a reasonable, sustainable and standing growth rate" to ensure Brazil remained a stable choice for investors. "We'll keep an eye on stability and another on investment", she said.

Interested in property in Brazil?
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Brazil raises interest rates amid 'overheating' fears

admin — Thu, 03 Mar 2011 13:08:00 GMT

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 — Tue, 01 Mar 2011 11:25:00 GMT

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 — Tue, 22 Feb 2011 12:02:00 GMT

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 — Mon, 21 Feb 2011 14:04:00 GMT

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 — Tue, 15 Feb 2011 10:52:00 GMT

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 — Fri, 04 Feb 2011 11:08:00 GMT

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 — Fri, 28 Jan 2011 10:50:00 GMT

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 — Wed, 26 Jan 2011 11:30:00 GMT

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."

Buying development land in Latin America

Catherine Deshayes — Tue, 21 Dec 2010 19:19:00 GMT

There has never been a better time to buy development land in Latin America - it's a buyer's market, many landowners are under financial pressure and buyers are thin on the ground, so if you buy land well, you could profit handsomely...

However, retail sales in many markets have slowed as a result of financial and economic problems in the US. This has kept land prices artificially low, and means that many developers need to tap alternative sources of finance.

This slow-down in retail demand is temporary. The medium-term drivers in the market are just too strong. One of those drivers is a large group of Americans, born in the years 1946-1964, and dubbed the baby boomers.

More than 4.5 million North Americans (mostly baby boomers) are now considering living in, or owning property in, Latin America.

Baby boomer retirement will largely drive the market for overseas real estate in parts of Central and South America for the next 20 years. This trend is in its infancy. Financial and economic difficulties in the US will increase this trend, not retard it. Many retirees simply can't afford to live in the US on their retirement savings. Boomers will look to the tropics for new, affordable lifestyle opportunities. There's more than one way to profit from this trend.

You could just buy retail property, (lots, condos) or you could take another approach: investing in a development.

The biggest returns in development come to those who get in at a wholesale level. Buying large tracts of land, obtaining permits, planning and building, selling and marketing is only for those with the experience, resources and the team to pull it off...or for those of us who invest in the right people.

Today, there are opportunities to get in at this ground-floor wholesale level and let someone else do all the work. But you should look for deals where the developer has the same type of equity at stake as you...so he'll work just as hard for you as he will for himself. Don't invest in a developer who's going to use your money to pay himself a fat cut before he puts your money to work.

Look for deals where you get to participate in the purchase of development land at undervalued prices. This land needs to be in a market you like. Debt should be kept to a minimum.

Most importantly the development team needs to have a track record of delivering projects like this and getting things done. And the deal needs to be structured in a way that you get to enjoy the maximum upside potential.

There are number of way you can participate at an investment level from your armchair.

Pure equity investment. This amounts to becoming a shareholder in a development company. You make an investment, and you get an agreed number of shares in return. Invested amounts vary from a couple of hundred thousand dollars to seven-figure sums. Some groups offer opportunities where smaller investors can get in with as little as $50,000 (£31,718).

Return on investment can take several years-but sometimes deals like this can start making disbursements to shareholders as soon as sales start flowing. I like these deals because investors' returns are uncapped. They enjoy the same upside potential as the developers.

Hard money loans. More and more developers are offering this type of investment as banks tighten their lending policies and credit dries up from other sources. A hard money loan behaves in a similar way to a corporate bond.

A developer borrows money from you and agrees to pay it back in a fixed time period. Meantime, you get monthly or quarterly interest payments.  

Your loan should be backed by a real and liquid asset. You need to be comfortable that in a default scenario you could recoup your investment by selling the asset your loan was secured on. Interest rates can be high, 20% and higher. Unlike the equity play, your return is capped at this level. With the right security available, this can be a relatively easy way to earn an annualized 20%.

Bulk purchase of units. Once a developer has locked down a piece of land, it takes time to nail down the master-plan and get all the relevant permits. During this period, a developer may offer an agreed number of lots in return for a cash investment. In effect, you are buying lots before the master-plan has even been drafted. In return, you get lots at a deeply discounted price to the projected retail price.

Sometimes deals like this are structured in a way that you buy shares, and your dividend payout is lots. You receive your dividend once the master plan is finalized and permits are in place. I like this type of arrangement because once you are allocated your lots you have control and flexibility. For example, you might want to sell some of your lots to recoup your original investment.

The bulk purchase of lots is perfect for a small or mid-sized investor who wants to retain full flexibility and control over his asset. Again, security is key. You need to be sure that your investment is secured against land or held in escrow until title is transferred on your lot. Follow this strategy...pick the right deals...and you could triple your money in 3-4 years with the security of an underlying asset.

Written by Pathfinder's Ronan McMahon

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

Picture by Secret

Brazil piques highest level of overseas interest

Catherine Deshayes — Tue, 30 Nov 2010 20:01:00 GMT

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 — Sun, 14 Nov 2010 19:41:00 GMT

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 — Mon, 08 Nov 2010 19:57:00 GMT

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 — Fri, 05 Nov 2010 11:23:00 GMT

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 — Mon, 18 Oct 2010 07:28:00 GMT

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 — Wed, 06 Oct 2010 14:07:00 GMT

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

Brazil election goes to second round

Steph Engall — Mon, 04 Oct 2010 10:15:00 GMT

In spite of one of the most successful presidencies in the country's history, the endorsement of the outgoing president was not enough to secure the position for his preferred successor...

It had been hoped that the election would be a shoe-in. Current president Luiz Inacio Lula da Silva has been immensely popular, presiding over a period of rapid economic growth, social change and increasing global influence. But in the end, the 47% of votes that Dilma Rousseff and her Workers Party picked up, fell just short of the 50 percent needed to secure outright victory.

What this means for Brazil is a second round of campaigning and voting, with a head to head against Jose Serra of the Brazilian Social Democratic Party scheduled for 31st October. Mr Serra came second in this ballot with 33 percent of the vote and faces an uphill struggle to close the gap.

In some respects, Ms Rousseff - who would become Brazil's first female president - failed to capitalize on the unprecedented 80 percent popularity of President Lula as the later stages of her campaign were marred by corruption allegations relating to a former aide.

The outcome of the election could now be decided by the future allegiance of the 19% of voters who supported of Marina Silva, a right wing evangelical Christian and former environment Minister.

Ms Rousseff was still bullish about the election, despite the disappointment of not winning outright at the first attempt, saying: "I will face this second round with a lot of strength and energy. In this second round, I will have the opportunity to further detail my proposals, present my projects to eradicate poverty and develop the country."

Spain, France and Italy join forces to attract emerging markets

Steph Engall — Tue, 28 Sep 2010 15:15:00 GMT

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 — Mon, 06 Sep 2010 07:41:00 GMT

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 — Fri, 03 Sep 2010 12:42:00 GMT

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 — Thu, 26 Aug 2010 07:39:00 GMT

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

UNESCO World Heritage list swells

Catherine Deshayes — Thu, 05 Aug 2010 07:42:00 GMT

In a bid to combat long-standing criticism about a bias towards Europe in the selection of world heritage sites, the World Heritage Committee have chosen sites in developing countries for the 2010 additions, including several that are well off the beaten track...

A UNESCO World Heritage Site is a place that is listed by UNESCO as having special cultural or physical significance. The World Heritage Committee, which is responsible for examining the sites and deciding whether they should be awarded the status, have already chosen almost 900 areas - including 'cultural,' 'natural' and 'mixed' venues which they have deemed to have 'outstanding universal value.'

Now, the list has swelled to 911, with a whopping 21 new additions, following a UNESCO's World Heritage Committee meeting in Brazil.

The Committee awarded its seal of approval to a few already well-visited attractions, such as Amsterdam's canal belt and France's historic town of Albi.

But, for the first time, some of the sites went well off the beaten track. The Bikini Atoll, where US atomic bomb tests ushered in the nuclear era, and Sri Lanka's highlands were two such examples.

In a bid to combat long standing criticism about a perceived bias towards Europe, UNESCO officials sought to redress the balance and recognise unique areas in developing countries.

Brazilian Culture Minister Juca Ferreira said, ''There is a sort of imbalance that means the cultural assets of Africa, Latin America and part of Asia are not as well represented as European culture."

The 2010 listings include single sites in Australia, Austria, Brazil, Bulgaria, Germany, India, Kiribati, the Marshall Islands, the Netherlands, Norway, Romania, Saudi Arabia, South Korea, Spain, Sri Lanka, Tajikistan, Tanzania, the United States and Vietnam, plus two sites each in China, France, Iran and Mexico. A colonial palace in Vietnam, temples in China, a historic bazaar in Iran, a national park on France's Reunion Island in the Indian Ocean and an 18th-century astronomical observatory in India are some of the lucky 21.

Three countries - Tajikistan, the Marshall Islands and the South Pacific nation of Kiribati - earned their first World Heritage tags.

The nature heritage site Ngorongoro in Tanzania was also deemed a site of cultural significance.

But some cultural sites that many feel should be awarded World Heritage status missed out, due to a longstanding stalemate over Palestinian cultural sites, which remain technically stateless.

As a result, the ancient city of Jericho and the Church of the Nativity in Bethlehem cannot be included on the list.

UNESCO official Francesco Bandarin explained that the organisation is attempting to remedy that. "We are trying to promote discussions between Israel and the Palestinian representatives," he said.

The UNESCO World Heritage Committee also discussed restoring important sites in Haiti, which was devastated by an earthquake in January.

Four sites were declared "in danger": Georgia's Bagrati Cathedral and Gelati Monastery, Madagascar's Atsinanana rainforest, Uganda's tombs of Buganda kings and the Everglades National Park in the United States.

Just nine of the 32 sites considered were turned down, UNESCO spokesperson Sue Williams said.

The UNESCO World Heritage Committee will next meet in Bahrain in June.

Check out the full list at http://whc.unesco.org/en/list

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

Picture by idman

Brazil: getting hotter by the second

Catherine Deshayes — Wed, 04 Aug 2010 07:17:00 GMT

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 — Fri, 30 Jul 2010 10:50:00 GMT

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 — Thu, 29 Jul 2010 07:34:00 GMT

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

Making a solid Brazilian land investment

Catherine Deshayes — Tue, 06 Jul 2010 07:17:00 GMT

In the early years of the 2000 millennium, the Brazilian economy was still a question mark, and was perceived by many as a risky country for real estate investments - today, all that has changed and the first investment wave has given way to a second wave of land speculation- so follow our tips to investing safely in Brazil...

Ten years ago, the majority of property investors focused on other markets. Many European markets were witnessing a real estate boom rarely seen before in history, and countries like Spain, Portugal and France saw a large influx of foreign buyers looking for holiday homes in the sun. Along with the growing popularity, the cost of coastal land in these countries increased rapidly as well, and many savvy developers started looking at new areas for land banking investments where they could invest part of their profits.

One of these new areas that caught the interest of property developers was Brazil, and especially the coastline in northeastern Brazil. In those times, foreign developers perceived cost of land in Brazil as very low, and an increasing numbers of foreign developers started to invest in large pieces of Brazilian coastal land for land banking purposes. Many applied for building permissions for beach and golf resorts on the acquired land, and even though some did so with the intention of actually developing future beach resorts, this was mainly done in order to add value to the land.

This "first investment wave" consisting of mainly land banking investors, usually happens in the very early stages when a destination is perceived as having future real estate potential. Brazil has long been seen as a promising future market for holiday home buyers, and the lank banking phase usually takes place long before the actual end user market starts to invest in properties in the area.

In recent years, a "second wave" of land speculation has been taking place, where foreign owned groups have acquired land parcels in mostly deserted areas along the coastline in northeastern Brazil. Typically the land developer splits the land in smaller lots of around 500m2 and markets these for prices that seem appealing to novice land investors with little know-how of Brazil. However, investors are advised to learn about the real market fundamentals before making any investment decisions.

Demand drivers for land in Brazil

Moving on from speculative land banking, most end users buy land in Brazil either for residential living or holiday home purposes. In each scenario the demand driver is the end-user market that has a real need and desire for a property in the area.

There have been several very successful residential plot projects from large developers in Brazil. In these projects the land developer typically sources large land parcels in the outskirts of the state capital, puts in infrastructure and facilities, and then their clients can build villas themselves on the plot. Prices of these plots are usually around 400-1000m2 in such developments, and are often sold for over 50 000 -100 000 Euros. These projects are often sold out long before the first houses have been built. The primary reason these projects sell out so quickly is that they fulfill a "real" demand, as the Brazilian population wants to live in an area that offers excellent infrastructure with easy and quick access to the city.

The second type of end-user who buys land in Brazil does so for building a property for holiday purposes. In this scenario, the end-user is interested in an area that offers a good holiday experience. This often means that the area, in addition to having beautiful beaches and nature, also needs to have infrastructure and amenities in place, like shops, bars and restaurants -otherwise the area will not be appealing to holiday buyers. The primary reason plots sell in these areas is that they fulfill a "real" holiday demand, as Brazilians and foreigners alike, want to have a property in this type of location.

Not all areas fulfill the holiday demand criteria

By studying the coastline along the coastline in northeastern Brazil a bit closer, it quickly becomes apparent that not many coastal areas actually fulfill this real holiday buyer criteria. Many areas in the northeast of Brazil are extremely undeveloped, and offer very little if any, infrastructure. In these areas, it could take well over 10-15 years before progress eventually comes their way, and they actually start to offer some kind of end user real estate demand.

Buying a piece of land in such an area is similar to gambling, as there are too many uncertainties, and it could well be that the area remains deserted for a very long time.

Some areas, though, have taken a different route, and have developed into popular holiday coastal villages with nice infrastructure. Among the most famous ones in northeast Brazil, are areas like Praia da Pipa, Porto de Galinhas, Arraial D'ajuda, Trancoso and Itacaré.

Don't focus only on cost of land - Think about the potential sales price of a finished property on the land.

One of the biggest mistakes many foreign land investors make is that they only look at the price of the land. In order to illustrate this point, let's look at a very simplified example of two different scenarios:

An investors buys a 500m2 plot in a deserted beachfront location for 19 900 Euros. He then decides to build a villa of 200m2 on the plot, for a total cost of 500 Euros/m2. Total build price comes out at 100 000 Euros, and including the price of the land, the total amount invested is 119 900 Euros.

The investor buys a 500m2 plot in an area with an existing tourist market for 50 000 Euros. The plot is not beachfront, but it enjoys a nice setting and is close to the beach. He then builds the same villa of 200m2 for 500 Euros/m2, and the total investment comes out at 150 000 Euros.

Many novice land investors will think the first scenario is a better land investment. The fact is, however, that cheap land tends to be in deserted locations with very little interest from a tourist point of view. The area is probably not very popular, and it is likely that the investor's house has no appeal to any end-user buyer. In this scenario, the likely outcome is that investor will not be able to sell the house, or the plot, because there is no demand. In this scenario, even though the 500m2 might be bought for 9000 Euros, it still would not be a good investment.

The second scenario is completely different. A 200m2 house in a desirable location will always attract end-user clients, both for sales and rental purposes. Properties in highly desirable locations do not need to be beachfront either, as the area will offer many other attractions. The investor could probably sell the house for a decent profit, as the end-user market sees value in the property because of its location in a highly desirable area.

This is obviously a very simplified example, but it does clearly illustrate the importance of location. Unfortunately many novice land investors tend to only focus on a low purchase price for the land, and they forget about real investment fundamentals.

Summary:

When buying land in Brazil for investment purposes, it is very important to first ask yourself what makes the piece of land attractive for future buyers. Secondly, it is important to understand why a client would buy the land from you at a higher price than you initially paid.

It is easy to be lured by the cheap land prices being marketed by opportunistic land developers, but this can lead to you making the wrong investment decision. Land investing in Brazil can be very profitable, but instead of searching for cheap land, it is wiser to look for good value in an already popular area with existing end-user demand. Buying Brazilian land in a good and popular area, will assure that you have an exit strategy for your land investment in Brazil.

Written by Alexander Wasastjerna for Brazilian Homes LLC and www.nuwireinvestor.com

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Picture by Katia