Brazilian Investment Stays at Home by Obelisk International News

July 7, 2011 - PRLog -- Marbella, Spain, July 7 2011. The rich cities of the south east have traditionally been the main focus of Brazilian investment. But recent increases in living standards have led to investment in Brazil moving to other parts of the country.

Rio de Janeiro, Sao Paulo and Minas Gerais have always an attractive triangle for Brazilian investment. Between them, the three cities account for a significant percentage of Brazilian GDP. However, Brazil’s economic growth and the subsequent increase in purchasing power means businesses are increasingly looking outside these three cities for investment opportunities.

Other cities and states are growing fast with the average GDP doubling since 2000. North east Brazil is a case in point. Here, the economy in the main cities has grown three times as fast as Sao Paulo. The new wealth translates into a wide range of business opportunities as entrepreneurs make the most of the new locations for investing in Brazil.

For Adma Hamam de Figueiredo, coordinator at the Brazilian Statistical Agency (IBGE), the drivers behind the change in investment direction are agribusiness, the oil and gas industry and the spread of industry. “The new economic power of inland Brazil has changed the map of business investment in Brazil,” he says, quoted in the business weekly Istoe Dinheiro.

Real Estate Investment

Most Brazilian real estate developers are well aware of the opportunities to be found throughout Brazil. Many have invested in expansion beyond Rio de Janeiro and Sao Paulo over the last few years.

One example is MRV Engenharia, the third largest developer of property in Brazil. In the first quarter of this year, 50% of MRV launches were located in areas other than the south east. Istoe Dinheiro claims that MRV is “very impressed by the results” from development of real estate in Brazil’s north east.

This shift is business dynamics is expected to continue as the economic clout of the Brazilian middle classes steams ahead. The opportunities for investment in Brazil are so good that many Brazilian businesses are reportedly no longer considering expansion abroad. A booming economy together with the diversity of Brazil means doing business on home ground is more attractive, easier and lucrative than overseas.

Market research at Obelisk International has also noticed the change in direction of Brazilian investment, both from foreigners and Brazilian companies. For Obelisk International, Brazil’s new middle classes are creating excellent business opportunities everywhere and it’s no longer necessary to focus on the south east for successful investment in Brazil. This is particularly true in the Brazilian property sector where the rise in purchasing power means that families throughout the country are keen to buy a home.

About Obelisk International: Obelisk International offers select investment opportunities in Brazil in a range of sectors such as residential real estate, construction and social housing. Obelisk gives investors security, profitability and diversity thanks to a combination of close attention to our clients' investment requirements and high quality in-house research and analysis.
For more information on Brazilian investments and to find out about Obelisk International’s latest opportunities for investment in Brazil, contact us on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.  Follow us on Twitter – Obelisk International and Facebook.

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Obelisk International offers select investment opportunities in Brazil in a range of sectors such as residential real estate, construction and social housing within the Minha Casa Minha Vida programme.