Transcript
Who are we?
Our goal
How can we help? - Who should I look for? Where to begin? Where should I invest?
Associated companies - Odebrecht, Invest Tur, Queiroz Galvão, Cyrela, OAS, Método, Accor, Pestana
Main activities - Public Relations, participation in fairs and events, road shows and technical missions, NORDESTE INVEST, UNIADIT
Brazil takes off
“Sometime after 2014 Brazil is likely to become the world’sfifth-largest economy, overtaking Britain and France.
By 2025 São Paulo will be its fifth-wealthiest”.
The Economist, November 12th 2009
Countries that provide the bestOpportunity For capital appreciation:
1. U.S.; 2. Brazil; 3. China; 4. UK; 5. India
Source: Association of Foreigner Investors in Real Estate - AFIRE
Key drivers
Demographics: Population , new families and age groups Economic growth Income growth Housing shortage Growth in credit and real estate investment Foreign Direct Investment Reduction in interest rates Governmental subsidies and incentives Infrastructure
More drivers
Risk reduction: investment grade
Commodities: China
World Cup and Olympics
Think about it...
Local partner. Local team.
Social housing is challenging.
Mid-scale abroad means up-scale in Brazil.
Equity x debt.
Plenty of opportunities. Lack of projects.
Don’t be inteligent. Be wise.
Felipe Cavalcante
President of ADITAssociation for the Real Estate and TourismDevelopment
presidente@aditnordeste.org.brwww.aditnordeste.org.br
THANKS!
Population,families and housing
Brazilian population pyramid - 1950 / 2030
Brazil´s growth
Goldman Sachs projected growth trend vs. real trend
In a 2003 paper, Goldman Sachs introduced the term BRIC. Within the papers assumptions, they fixed Brazil´s growth rate at 3.6%. We present the actual vs. the progected growth rates.
Transformation of social classes2003-2008
Family distribution by income group
Housing shortage by region and components in 2005(residences in thousands)
Real estate credit overview
Term: up to 30 years
Payment as percentage of income: between 25 and 35%, with an average of 30%
Financing: up to 80%
Interest rates: from 5 to 12%, with an average between 9% and 10%
A market comparison:2007 and 2030 (in R$ Billion)
Annual residentialproperty investments
Total FDI vs. Real Estate FDI
What is Brazil´s interest rate tendency?
Minha Casa Minha Vida; Federal Housing Program
60 billion in investments with 34 billion in subsidies
1,000,000 housing units until 2010
Infrastructure as an anti cyclical policy
Federaly funded program to accelerate growth (2007 - 2010)
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