Foreign Direct Investment
Foreign investors are returning to the Brazilian market – The latest statistics published by the Central Bank of Brazil show a strong increase since April 2018. Banco Central do Brazil stated that from January until may in 2019, Brazil attracted foreign direct investment (FDI) inflows of more than US$28.1bn (€24.8bn).
The bank says that from April 2018 to April 2019, FDI net inflows totaled US$92.5bn, equivalent to 4.96% of GDP, the highest percentage since May 2011. Brazil’s FDI (in all sectors) peaked at US$101bn in 2011.
Economists are more than satisfied with parameters and indicators in Brazil. GDP growth has picked up, inflation and interest rates are stable and controlled.
Professional point of view, Hines (real estate investment firm)
Hines is a global real estate investment, development and management firm, with a presence in 214 cities in 24 countries and $120.6bn (€105.4bn) of assets under management. They state that 2019 is being an irresistible year for investors in Brazil.
“We think today is, without exception, the most compelling investment environment we have seen in the more than 20 years we’ve been on the ground there,” says Apps (Managing Director of Hines).
This shows a very optimistic picture of Brazil economy. Investors trust the current political, economic and social situation in Brazil.
Apps carried on saying: “Look at current prices and investment opportunities and you see compelling opportunities. We are seeing a prototypical counter cyclical investment environment today. We see discounts to peak values in the office sector of 50% to 60% in real terms”.
Reasons and facts of why Brazil is a good choice for investment
Also, it is important to know why investors choose Brazil over other countries. Some of these reasons and general facts are:
- The incentives that the government provides to the investors, also allowing them to have 100% ownership of land and property.
- Brazil ranks among the top 20 exporting countries in the world.
- Brazil is a very popular tourist destination among people the world over. It attracts about 6 million foreign tourists every year.
- It has a very stable currency.
- The country has very satisfying geographical conditions. The weather is normally between 25-30 degrees Celsius.
These are only a few reasons of why investing in Brazil is a good choice. Check The Coral to see a great investment opportunity in Ceará, Brazil.
(Source: Real assets ipe)
