Apresentação Why Brazil? Why now?

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Apresentação Why Brazil? Why now?

  1. 2. Who are we? <ul><li>Our goal </li></ul><ul><li>How can we help? </li></ul><ul><li>- Who should I look for? Where to begin? Where should I invest? </li></ul><ul><li>Associated companies </li></ul><ul><li>- Odebrecht, Invest Tur, Queiroz Galvão, Cyrela, </li></ul><ul><li>OAS, Método, Accor, Pestana </li></ul><ul><li>Main activities </li></ul><ul><li>- Public Relations, participation in fairs and events, road shows and </li></ul><ul><li>technical missions, NORDESTE INVEST, UNIADIT </li></ul>
  2. 3. Brazil takes off “ Sometime after 2014 Brazil is likely to become the world’s fifth-largest economy, overtaking Britain and France. By 2025 São Paulo will be its fifth-wealthiest”. The Economist, November 12th 2009 Countries that provide the best Opportunity For capital appreciation: 1. U.S.; 2. Brazil; 3. China; 4. UK; 5. India Source: Association of Foreigner Investors in Real Estate - AFIRE
  3. 4. Key drivers <ul><li>Demographics: Population , new families and age groups </li></ul><ul><li>Economic growth </li></ul><ul><li>Income growth </li></ul><ul><li>Housing shortage </li></ul><ul><li>Growth in credit and real estate investment </li></ul><ul><li>Foreign Direct Investment </li></ul><ul><li>Reduction in interest rates </li></ul><ul><li>Governmental subsidies and incentives </li></ul><ul><li>Infrastructure </li></ul>
  4. 5. More drivers <ul><li>Risk reduction: investment grade </li></ul><ul><li>Commodities: China </li></ul><ul><li>World Cup and Olympics </li></ul>
  5. 6. Think about it... <ul><li>Local partner. Local team. </li></ul><ul><li>Social housing is challenging. </li></ul><ul><li>Mid-scale abroad means up-scale in Brazil. </li></ul><ul><li>Equity x debt. </li></ul><ul><li>Plenty of opportunities. Lack of projects. </li></ul><ul><li>Don’t be inteligent. Be wise. </li></ul>
  6. 7. Felipe Cavalcante President of ADIT Association for the Real Estate and Tourism Development [email_address] www.aditnordeste.org.br THANKS!
  7. 8. Population, families and housing
  8. 9. Brazilian population pyramid - 1950 / 2030
  9. 10. Brazil´s growth
  10. 11. 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.
  11. 12. Transformation of social classes 2003-2008
  12. 13. Family distribution by income group
  13. 14. Housing shortage by region and components in 2005 (residences in thousands)
  14. 15. Real estate credit overview <ul><li>Term: up to 30 years </li></ul><ul><li>Payment as percentage of income: </li></ul><ul><li>between 25 and 35%, with an average of 30% </li></ul><ul><li>Financing: up to 80% </li></ul><ul><li>Interest rates: from 5 to 12%, with an average </li></ul><ul><li>between 9% and 10% </li></ul>
  15. 16. A market comparison: 2007 and 2030 (in R$ Billion)
  16. 17. Annual residential property investments
  17. 18. Total FDI vs. Real Estate FDI
  18. 19. What is Brazil´s interest rate tendency?
  19. 20. Minha Casa Minha Vida; Federal Housing Program <ul><li>60 billion in investments with 34 billion in subsidies </li></ul><ul><li>1,000,000 housing units until 2010 </li></ul>
  20. 21. Infrastructure as an anti cyclical policy <ul><li>Federaly funded program to accelerate growth (2007 - 2010) </li></ul>

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