Brazil Real Estate Outlook: Q&A

BY CHRONICLE STAFF

What is the outlook for real estate in Brazil? What sectors will drive growth? Office, retail, industrial, residential? What areas of Brazil have the best prospects? What are the key challenges facing the real estate sector in Brazil? What makes Brazil different than other real estate markets in Latin America?

Latin Business Chronicle asked ten experts from Brazil, the United States and the United Kingdom. Our panel includes:

• Aloísio Feres Barinotti, CEO, NAI Brasil
• Robin Barrasford, Managing Director,  Barrasford and Bird, United Kingdom
• Ricardo Betancourt, general manager of Colliers International in Sao Paulo
• Brian Carr, Co-head of Morgan Stanley Real Estate Investing - Americas, USA
• Manoj Chawla, Managing Director, Alexander Richards Limited, United Kingdom
• Patrice Etlin, head of investments in Brazil for Advent International, USA
• Fernando de Faria, director for corporate services and investment, CB Richard Ellis, Brazil
• Gary Garrabrant, CEO of Equity International, USA
• Paul Owen, Chief Executive of the Association of International Property Professionals (AIPP), United Kingdom.
• André Rosa, Capital Markets Director in Brazil for Jones Lang LaSalle

Latin Business Chronicle: How do you view the outlook for real estate in Brazil?

Etlin: Due to factors like macroeconomic stability, GDP growth and mainly the increase in real estate credit, we expect strong and solid growth for the next years. Evidence is the fact that Brazilian real estate companies have been able to reach capital markets (both equity and debt) in a way never seen before.

Garrabrant: Equity International is extremely bullish as relates to real estate opportunities in Brazil. We have three portfolio companies, Gafisa, BR Malls and BRACOR. Two are public. We view all of them as being extremely representative of the opportunities that exist…. We’re very bullish from a macro perspective on Brazil. It’s on its way to achieving investment grade [which] is very positive and we’re fully confident that [it] will achieve that earlier than expected…We’re big supporters of Lula. We believe he has set in motion a series of reforms that are very positive for the country and that should affect real estate industry positively over time.

Carr: We view the outlook for the real estate sector in Brazil very positive as the key ingredients for success are present in the market.  The country is continuously attracting foreign capital that is investing in real estate mainly because the fundamentals for investment in property have been improving...

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