Brazil Defies Global Economic Downturn

While many of the world’s economies are feeling the undulations of the global credit crunch, one country which appears to be faring better than other nations around the world is Brazil.

The fifth largest country in the world, with a population of 180 million, Brazil’s domestic market is huge. Significantly for investors, the Brazilian tourist market is said to be currently dominated by 90% domestic tourism, while 4.7 million foreign visitors also head to Brazil every year. The government’s ‘National Plan for Tourism’, among other activities, has plans to raise this to 9 million.

“Brazil’s tourism sector has been enjoying considerable growth, while the country’s wealth is also rocketing. Only 50,000 Brazilians have mortgages, and with mortgage rates dropping due to better market stability, and recent fiscal stability, the Brazilian economy is going from strength to strength, indeed, the finance market has been upgraded,” explains David Martin, the sales director of BRIC Investment – a company which sources real estate investment opportunities in emerging markets around the world.

“Brazil’s excellent natural resources, which include an estimated 40-50 billion barrels of oil, make it one of the most self-sufficient countries in the world. Negative trade motions, caused by either falling currencies, which make exportation too expensive for other nations; or growing currencies, which result in importation being too expensive due to bad exchange rates, do not affect Brazil in a massive way. This is because Brazil’s economy is only 20% trade, so even a 20% drop in this foreign trade would only leave 4% of the country’s economy damaged. As a result, Brazil has been largely unaffected by the credit crunch.”

This is good news for anyone thinking of purchasing property in Brazil, indeed, the British embassy has estimated that there will be over 50,000 UK residents buying property in Brazil by 2011.

“The Brazilian property market offers lucarative advantages for foreign investors, with high levels of capital growth and no restrictions concerning profits and the return of capital to an investor’s native country. At BRIC Investment, we focus on property which has intrinsic value in growth markets and which is not being affected by the credit crunch. With these criteria in mind, Brazil was an obvious choice,” says Mr. Martin.

“Indeed, the strength of the pound against the Brazilian Real is making property in Brazil increasingly popular with investors. The demand for five-star resorts in Brazil, for example, is huge, and we are proud to be at the forefront of our market place with the Coral Lake & Beach Resort – the largest private, five-star beachfront development in construction in north east Brazil.”

The Coral Lake & Beach Resort is situated in Flexeiras, just north of Fortaleza – the capital of the state of Ceara in north eastern Brazil. The resort boasts a beachfront location, just metres from the sea. The coastline is protected by coral reef which makes the waters calm and child-friendly.

“This resort occupies a very solid position in the market. This is due to the vast number of partners promoting the project, and the widespread coverage which the resort is generating. Due to the competitive pricing strategy, and the route to market, we have been able to uniquely incorporate an exit strategy that can generate a massive return on investment,” says Mr. Martin.

“We allow clients to buy with flexible payment terms, with value tied in, in a market which is booming. Essentially, we protect our client’s investment from the negative effects of the credit crunch through steady researched appreciation.”

BRIC Investment is developing the Coral Lake & Beach Resort with MD-Brasil – the company behind the multi-award winning Fortaleza International Airport.

“We are extremely excited to be joining forces with the largest and most established developer in the region. MD-Brasil has been in business since 1982 and has gone on to build hundreds of projects, all of which are finished to incomparable standards,” explains Mr. Martin.

“The Coral Lake & Beach Resort looks set to be the next project to continue their catalogue of outstanding developments and we would advise investors to act sooner rather than later if they don’t want to miss out on this incredible investment opportunity.”

News submitted by Nick Cates, BRIC Investment

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