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20 Reasons to Invest in Brazil – Part 2

September 2 2014

Providing our readers with Part 2 of our 5 part Blog on ’20 reasons to invest in Brazil’…

Click here to view 20 Reasons to Invest – Part 1

5) An overwhelming demand for housing – Within Brazil’s big cities, house prices have soared as salaries have grown and mortgages have become easier to obtain. Although many anticipated a general slowing, demand continues especially in the north east where many areas are being transformed to cater for the increasing tourist trade. Prices nationally rose by 12.7% in 2013 (Fipezap house price index) with the north east again expected to be higher due to new developments and a general shortage of affordable property.

6) The Brazilian Real 20 years on – Introduced to Brazil on 1st July 1994, the Brazilian currency, the Real, replaced the Cruzeiro which suffered from rampant inflation over a 30 year period. Since the Real launch, the currency has seen more stability giving confidence to international investors. As part of the BRICS economy, current Brazilian President Dilma Rouseff has been working hard to achieve the central banks inflation rate target of 4.5%. The north east has favoured much better as inflation was under 5 per cent in the 12 months to April 2014 compared with a national average of 6.4 per cent.

7) Hotel Demand on the Increase – With the massive amount of investments being channelled in to the north east region of Brazil, hotel chains are now cashing in. Ibis (part of the Accor hotels group) together with Best Western International who have over 4,000 hotels worldwide, are now firmly established in Brazil. According to data by real estate consultancy firm Jones Lang LaSalle, the number of hotels rated above two stars with online booking services are expected to rise more than 70% over the next decade. By the end of last year, Brazil had 313,833 hotel rooms registered, according to tourism ministry data. Fresh capital should also help BHG, Brazil’s only listed Hotel Company, who aim to increase the number of available suites by 50% at the end of 2015 from the current 8,539.(Reuters)

8) Brazil Welcomes Foreign Investment – Unlike some countries from around the world Brazil has been opening its doors to foreign investment for some time now. Because of its strict import taxes, companies from outside Brazil are reaping huge rewards since relocating their businesses to Brazil. In turn Brazil is also benefiting from foreign investment with over $180 billion coming into Latin America in 2013. Foreign companies interested in investing in Brazil count on numerous tax incentives granted by the Brazilian government on the municipal, state and federal level. Most incentives are granted upon the submission of a project comprising the minimum invested value, addressing job creation and other relevant matters. (Source Apex Brazil)

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