Brazilian real estate values are set for further expansion, boosting foreign direct investment (FDI), a forecast that Alternative Asset Analysis has strongly agreed with.
Real estate experts believe that the Brazilian market offers excellent opportunities for investors. David Lynn, of Clarion Partners in New York, says that this can be put down to a number of “positive fundamentals” that should ensure the market stays stable, offering good returns for number of years.
Anthony Johnson, an analysis partner at AAA, also agreed, saying “We welcome Mr Lynn’s assertions that Brazilian real estate could be a safe haven for investors in the coming years. His comments support our own view that Brazil is a fantastic place to invest as it will continue to seek economic growth in the future.”
Figures recently released by the Brazilian central bank show foreign direct investment increased during the first six months of this year, to its highest level since 1947 when records first began. A total of US$32.5 billion was invested, which is equal to 67% of the total FDI invested for the whole of 2010.
While much of the investment is in real estate, there is also interest in alternative asset classes such as sustainable forestry projects. These offer direct investment opportunities in plantations of non-native trees including teak and eucalyptus. The market for timber is currently expanding and moment due to the huge economic growth in Asia which is creating high demand. The Brazilian domestic steel industry is also seeing increased demand due to the FIFA World Cup which is due to be held in 2014, and the Olympics which are due to be held in the country in 2016.
Alternative Assets Analysis provides global news on a wide range of alternative asset classes which include real estate, hedge funds is, private equity, forestry, foreign exchange and venture capital, and the company is based in Boston, Massachusetts.