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There has never been a better time to invest in real estate in Brazil.

All the stars are aligned for superb returns for foreign investors who work in partnership with Brazilians and for each to benefit from the exponential growth in real estate to come. The week-long UK tour of members of ADIT, the Association for inward investment in Real Estate and Tourism in Brazil, (Oct 19-25) had a programme of events packed with facts and statistics to make any serious real estate investor take notice. Examples of Brazil’s economic stability include:

• 1 million new jobs are being created leading to the drop in unemployment from 7.9% last year to 7.5% this year.

• Brazil is perfectly placed to ride out the current economic crisis. National borrowing is only 4% of GDP and is set to reach 12% by 2014, compared to a current 65% in the US. The primary interest rate is now down to 8.5% making borrowing and credit for Brazilians possible for the first time in Brazil’s history.

• Social Housing – Brazil is facing massive housing shortage owing to the demand-supply mismatch. The Government has promised that 1.4 million homes will be created each year but there is already a requirement of 7.9 million homes. 28 million homes will be needed within the next 20 years according to Reuters ‘Brazil Housing Sector Analysis’ report.

• Foreign exchange reserves in Brazil increased from $202.4 billion in 2008 to $250 billion this year. The projection is that foreign exchange will increase up to $300 billion by 2010.

• A growing number of businesses are issuing shares on the stock market.

• According to the IMF (International Monetary Fund) Brazil is anticipated to become the fifth largest economy in the world by 2050.


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