Brazil is attracting much of the foreign investment in commercial real estate in Latin America.
Summary: Brazil is a top market for global investors after years of being a sleeping giant. Whether buying, upgrading or breaking new ground, there are many opportunities for hotel investors.
The country’s large and growing domestic market is appealing because it offers investors the chance to diversify their portfolios, spread their risks and potentially realize higher yields than in their home markets.
Among the many investment opportunities in Brazil, investors are particularly interested in real estate—so much that Brazil is attracting much of the foreign investment in commercial real estate in Latin America.
In the next 12–24 months, what percentage of your investment dollars committed to Latin America will be directed toward Brazil?
Investing in Brazil requires time, patience and strong local connectivity, but the result is getting into one of the world’s fastest-growing investment markets.
Brazil is one of the preferred places to invest globally, according to a recent Bloomberg survey, for a number of reasons:
- Brazil emerged from the recent global recession relatively unscathed and managed to maintain its investment-grade rating.
- It has brought its inflation under control and has launched smarter budgets.
- It has maintained a healthy banking system.
- It has a stable political climate.
Yet several challenges remain for Brazil:
- Brazil carries a gross public debt estimated at 63% of gross domestic product (GDP), which is higher than other investment-grade countries.
- It lacks sufficient transparency with real estate debt instruments.
- The nation has high taxes and restrictive labor laws, which can limit investment return.