North East Best for Brazilian Investment Opportunities

Brazil is currently a top destination for investment opportunities, but not all areas within this vast country provide the same potential. A new report suggests that the north east region is well worth considering for Brazilian investments.

Economic figures from Jones Lang LaSalle in Brazil point to north east Brazil as the region currently generating some of the best business opportunities in the country. Both Brazilian and international companies have earmarked the north east for investments in infrastructure and real estate.

Brazilian economic strength and the increase of consumer purchasing power are drivers behind north east Brazil's surge in investment opportunities. The region has done particularly well - GDP growth was 7.5% last year and the rise of social classes C and D has been spectacular. In addition, big government investment has acted as a magnet for foreign direct investment in this part of Brazil.

Government Investment Adds Up

Between them, the north and north east regions are the areas of the country to receive most funding from the government's ambitious investments in Brazil. Infrastructure, energy and social projects have benefitted hugely from central government funds.

Brazilian investment in transport in the area, for example, has reached R$7.3 billion, 13% of the country's total. Funds for improving water supply and housing have also been generous and north east Brazil has numerous social housing projects in progress under the auspices of the government programme, Minha Casa Minha Vida.

As a result of this government investment in north east Brazil, business opportunities have expanded. Interest in the area is currently high, particularly from international companies such as Obelisk International keen to maximise the north east’s investment potential.

Real Estate Investment Opportunities

Minha Casa Minha Vida in north east Brazil represents an important part of foreign investment in the area - Obelisk International alone has over 3,000 units under development and management. But there’s also big potential in other Brazilian real estate sectors.

Jones Lang LaSalle highlights the hotel sector in north east Brazil where there are currently 54 hotels under construction. Many of these hotels will be providing accommodation for the forthcoming 2014 World Cup (the capital of Rio Grande do Norte, Natal will host matches). This addition - totalling 8,649 beds - will go some of the way to reducing the shortage of hotels in north east Brazil.

Another north east Brazil real estate sector under the spotlight is the office market. Jones Lang LaSalle reports high demand and lack of supply in the area. The vacancy rate for office spaces in north east Brazil’s cities is extremely low (e.g. 2.8% in Salvador) proving there’s plenty of room for expansion within the sector of the Brazilian property market.

"North east Brazil is a must on the Brazilian investment radar," says Gary Hardacre, CEO of Obelisk International. "With all the right drivers for investment, especially property, this region has plenty of potential."

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