"Invest in Brazil: Are You Nuts?"

Península de Maraú- Twilight over Lake Cassange (by Alex Uchoa)

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Invest in Brazil … Are You Nuts?
3 August 2007

Well no, actually. In 2003, Goldman Sachs selected Brazil, along with Russia, India and China, as one of the four “BRICs”—the developing countries that would share dominance of the world economy by 2050.

Its growth potential should come as little surprise when you consider that the country produces its own oil along with half the world’s exports of ethanol (a valuable additive to motor fuel). It already has the ninth largest economy in the world in terms of purchasing power and is on the verge of becoming one of the leading recipients of foreign direct investment (FDI) in Latin America (OECD).

Along with a blossoming economy (the largest in Latin America), the fifth largest country in the world is also benefiting from a dramatic expansion of tourism-related real estate investment. Until relatively recently local banks had not been offering large-scale lending to customers but with the stabilisation of Brazil’s economy they have seen the opportunity for investment. In 2006 property lending doubled in Brazil and the construction industry is booming.

Eight million more homes are needed throughout Brazil, but it’s not just the domestic market that needs to be catered for. Brazil’s tourism sector is rocketing as the country’s many blessings are being counted by an increasing number of visitors to the country. A 134% increase in tourist numbers occurred between 2002 and 2005 and the government – which is keen to see this expansion continue to a high of 9 million annually – is investing heavily in the tourism industry and improving the country’s infrastructure.

Significant government advertising spend focused on tourism has seen an influx of major tour operators and record numbers of international tourists to the region.”

Experience International recently attended the ADIT NORDESTE conference in Salvador, Brazil. ADIT NORDESTE (Association for Real Estate and Tourism Development in the North East) was set up in June 2006 by 40 renowned national and international companies in the fields of tourism and real estate (including the Brazilian Ministry of Tourism) to promote the north east region of Brazil to foreign investors. These companies have projects of various sizes in the fields of tourism and real estate in general amounting to over £1 billion.

One of the aims of the project is to boost the confidence of investors and real estate buyers. The companies that form the association are guaranteeing the legal security of the enterprises, including environmental and ecological zoning. And the area is worth preserving. According to NASA it has the second purest air in the world and along with Antarctica has “the most unspoilt environment on the planet”.

Sunshine, natural beauty and amazing hospitality have transformed Brazil’s north eastern region into one of the most sought after tourist spots on earth and an opportunity to invest in this fast growing area should not be missed.