Print

November Investment Property Watch

Tuesday, December 22, 2009

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

Brazil

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Other movers and shakers

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

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

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

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

Table showing November's top investment properties

Hide table

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

Print Show Full Table

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

Picture by idman

Bookmark This Page

Tag, share or bookmark this page:

Recent Related Stories

Subscribe to Newsletters