Why Brasil

  • GDP in Brazil continues to show strong and sustainable growth; Average for 2008 at the end of Q3: 6.2%
  • Consistently decreasing unemployment rate reached 6.8% at year end 2008
  • Outstanding monetary reserve changes - from a 101.082 million US$ debt in 2005 to a 20.603 million US$ credit in 2008
  • Brazil became a net external creditor for the first time
  • 5.9% inflation in 2008 compared to 12.53% in 2002
  • FDI increases: from 12.903 million US$ in 2003 to 43.886 million US$ in 2008
  • All major financial analysts upgraded Brazil’s credit rating to Investment Grade for the first time in 2008
  • BRIC economies – Goldman Sachs predict that Brazil will be one of the top 5 global economies by 2050
  • Natural resources; Petrobrás announced at the end of 2007 that it had found as much as 8 billion barrels of oil at the TUPI oil fields. The find of an equally large field (Jupiter) was announced by Petrobrás in January 2008. Exxon Mobil Corp announced the find of a similar well on January 21st, 2009.
  • Stable government with President Lula’s administration having won the elections for a second time in 2006. The next Brazilian elections will be in Q3 2010.
  • Financing for residential real estate became available to the general population for the first time in 2008

BRASIL

“While commodity prices and demand for exports to the U.S. are falling, domestic demand throughout Latin America is rising. (…) In macroeconomic terms, Brazil, Chile and Peru will remain the strongest in the region“
Global Real Estate Monitor -Sponsored by GE Real Estate
December 2008

“Brazil is not seeing the distress found in other markets. Mortgages account for only 2% of GDP in Brazil, versus 65% in the United States and 74% in the UK, so consumers aren't feeling the effects of credit contraction. Demand is high.“
Tom Shapiro President and Founder of Golden Tree InSite Partners
Knowledge@Wharton Real Estate in Emerging Markets Forum
21 January 2009

"The answer is demand. When the world begins to recover from the current economic turmoil, the populations in these regions (…) will be looking to fill their basic needs first, like housing. (…) If you look at all of the facts, I don't think there's another environment in the world that's better than Brazil."
Sam Zell Chairman of Equity Group Investments and Equity International
Knowledge@Wharton Real Estate in Emerging Markets Forum
21 January 2009