Data by the Bank for International Settlements revealed that over US$ 75 billion was bought into Brazil in the form of loans, credit agreements and other financial vehicles in 2010 – placing the country one place behind China, who received US$ 153 billion.
Well-recognised as a leading organisation that serves the growing international interest in investing in Brazil, ADIT is now a firmly established port of call with regular events as well as its own investment agency and consultancy. We spoke to chairman Felipe Cavalcante on a range of issue related to the current climate in Brazil including recently emerging property bubble speculation; the ‘Minha Casa, Minha Vida’ programme (and the country’s housing deficit); regional hotspots; researching investment opportunities; transparency; risk management and the annual event being held in Forteleza city from the 10 to 12th of May.
According the Department of Statistics and Socioeconomic Studies (Dieese), the pace of real time earnings levels of the Brazilian work force looks set to slow down in 2011.
A survey by the Brazilian Company of Heritage Studies (EMBRAESP), demonstrated that the number of new real estate launches in the São Paulo region taking between 30 and 45 months for keys to be handed over to buyers has increased by 15 percent. Data released by the Justice Tribunal of São Paulo also pointed out that the number of court cases being taken against real estate developers increased from 202 to 500 between 2008 and 2010.
There has been an increasing amount complaints of below standard working conditions on Brazilian building sites – with several Minha Casa, Minha Vida (My House, My Life) (MCMV) projects being particularly guilty.
The Brazilian Senate has approved (by 44 votes to 17) the authorisation of an initial loan guarantee by the country’s development bank for a high speed train which will connect Rio de Janeiro and São Paulo. The terms of the ‘Trem Bala’ funding agreement of R$ 20 billion (totalling R$ 35 billion) have been receiving mixed responses with some stating that other, more necessary, projects deserve priority – such as housing, infrastructure, urban transport and the environment.
Launched in 2010, part 2 of Brazil’s Growth Acceleration Programme (Programa de Aceleração do Crescimento) has recently come under fresh criticism due to a lack of progress on several projects.
Reported quarter one 2011 sales figures for one of Brazil’s prominent real estate development companies – Gafisa – fell by 4 percent (R$ 822 million) in comparison to the last quarter of 2010.
A new proposal announced by the São Paulo city government for the construction of 7 residential tower blocks, a hotel and wide-ranging infrastructure improvements has been viewed as an important step in the right direction.
As overseas investment interest in Latin America continues to grow, a refreshing new breed of publications and research mechanisms has appeared which serve to provide relevant insider information to what can be complex marketplaces to enter. A great example of one of them is the Alternative Latin Investor – a free digital magazine which focuses on a range of topics included commodities, forex, private equity, wine, art, regulation, philanthropy, hedge funds, agribusiness, renewable energy, emerging markets and real estate. This interview with Nate Suppiah, CEO of the magazine, explores barriers faced by foreign investors in Latin America; which countries are the most secure; the boom-bust nature of several LatAm economies; political risks; the growth of Chinese interests in the region; particular areas of interests and some general tips amongst others. We also encourage you to subscribe to the magazine, details of which are at the end.
