Foreign investment in Brazil 'will boost civil construction'
Date added: 4th January, 2010 at 09:33
(view all articles from January, 2010)
Categories: Property News
Foreign investment in Brazil will be one of the factors which will drive expansion of the country's civil construction sector throughout 2010.
This is the view of Marina Sarruf, writing for Brazzil.com, who pointed out that analysts at the Getulio Vargas Foundation have forecast the industry's GDP will grow by 8.8 per cent over the next 12 months.
In comparison, a number of economic experts have predicted that the Latin American country's overall GDP will increase by around five per cent.
Speaking to state TV channel EBC, planning minister Paolo Bernardo remarked that Brazil's economy is likely to grow by 5.8 per cent or possibly even more, according to the Dow Jones news wire.
Ms Sarruf commented that the civil construction sector is set to benefit from greater demand for property in Brazil, pointing out that "the housing deficit in the country should boost the growth".
Increased availability of real estate credit should also have a knock-on effect on the industry, she claimed.
Furthermore, the correspondent said that overseas investment in Brazil will have a significant impact - a view shared by the Brazilian Society of Studies on Transnational Corporations and Economic Globalisation.
The organisation's president Luis Afonso Lima said: "In 2010, foreign direct investment should be very favourable to these factors."
Foreign investment in Brazil is expected to total some $40 billion (£24.8 billion) this year, an increase of around $15 billion on levels seen in 2009.
"The building sector should receive a good share of this investment," Mr Lima remarked.
Of all the factors impacting on the construction sector, the area which received the greatest share of overseas investment last year was building activities.
Some $1.2 billion of international money was spent on building property in Brazil, representing 5.4 per cent of all the funds flowing into the South American country. High-rise flats received the largest proportion of this cash with $608 million.
The second biggest draw for foreign money in the construction sector in 2009 was real estate activities, which accounted for $455 million of total inward investment. This category includes purchases of Brazilian real estate agencies by overseas individuals and companies.
Ms Sarruf commented that a housing and tourist complex in Florianopolis is "a concrete example that Brazil is already generating investor interest in the [construction] sector".
She noted that the site in Santa Catarina has already attracted $52 million of investment.
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