Investors attracted by investment grade rating and robust demand
Bricks in one BRIC country could soon be a hot commodity.
Brazil – one of the four core BRIC emerging markets, along with Russia, India and China – is a future host of the World Cup and the Olympics, and is drawing global investor interest to its real estate sector, which could see a record year in 2010.
Investors are drawn to the country’s investment grade rating and robust demand for everything from housing to hotel rooms. Brazil needs new retail space, warehouse and distribution centres and offices to support an economy whose growth is second only to China’s, analysts and investors said.
Equity International, a specialist in emerging markets, was among the early Brazil boosters, drawn by the upgrade of Brazil’s sovereign debt.
‘The waves of capital come and go,’ said Gary Garrabrant, chief executive officer and a co-founder, with Sam Zell, of Equity International. Mr Garrabrant was racing to the airport for his monthly trip to Brazil. ‘We’re now in a wave,’ he said. ‘Brazil has earned the opportunity.’
Though current enthusiasm, especially visible among North American investors, could still fizzle, Brazil’s economic growth is increasingly seen as sustainable, while inflation is down to levels more typical of developed markets. Continue reading
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