Commercial property in Brazil: Brazil is the country in the world with the fastest growth in direct investments in commercial property
Posted: 08/07/10 with the tags Property market
According to a new study, during the second quarter this year, Brazil is the country in the world with the highest growth rates in foreign direct investments in commercial property.
The direct investments in Brazilian commercial property almost tripled amounting to the record number of 1,6 billion US$. The majority of investors are domestic companies with only a small part being international investors.
The Brazilian luxury commercial property segment is seeing strong growth numbers, and in some parts of Rio de Janeiro the market suffers from a shortage in luxury commercial property and occupation rates are close to 100%.
While the European and North American real estate markets are still in recessions, the Brazilian real estate market has been going in a completely different direction. Before the crisis, the total property mortgage values in Brazil amounted to only 2% of the Brazilian GDP.
Currently the Brazilian mortgage market is growing at a very fast rate, but the same numbers currently amount to only 3% of the GDP. This is still far away from numbers such as 75% that is seen in the UK and many other western countries show similar numbers as well. This is very positive news for clients looking for property in Brazil, and it only shows how much growth there is still left for Brazilian investment property.