apresentação why brazil? why now?

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Page 1: Apresentação Why Brazil? Why now?
Page 2: Apresentação Why Brazil? Why now?

Who are we?

Our goal

How can we help? - Who should I look for? Where to begin? Where should I invest?

Associated companies - Odebrecht, Invest Tur, Queiroz Galvão, Cyrela, OAS, Método, Accor, Pestana

Main activities - Public Relations, participation in fairs and events, road shows and technical missions, NORDESTE INVEST, UNIADIT

Page 3: Apresentação Why Brazil? Why now?

Brazil takes off

“Sometime after 2014 Brazil is likely to become the world’sfifth-largest economy, overtaking Britain and France.

By 2025 São Paulo will be its fifth-wealthiest”.

The Economist, November 12th 2009

Countries that provide the bestOpportunity For capital appreciation:

1. U.S.; 2. Brazil; 3. China; 4. UK; 5. India

Source: Association of Foreigner Investors in Real Estate - AFIRE

Page 4: Apresentação Why Brazil? Why now?

Key drivers

Demographics: Population , new families and age groups Economic growth Income growth Housing shortage Growth in credit and real estate investment Foreign Direct Investment Reduction in interest rates Governmental subsidies and incentives Infrastructure

Page 5: Apresentação Why Brazil? Why now?

More drivers

Risk reduction: investment grade

Commodities: China

World Cup and Olympics

Page 6: Apresentação Why Brazil? Why now?

Think about it...

Local partner. Local team.

Social housing is challenging.

Mid-scale abroad means up-scale in Brazil.

Equity x debt.

Plenty of opportunities. Lack of projects.

Don’t be inteligent. Be wise.

Page 7: Apresentação Why Brazil? Why now?

Felipe Cavalcante

President of ADITAssociation for the Real Estate and TourismDevelopment

[email protected]

THANKS!

Page 8: Apresentação Why Brazil? Why now?

Population,families and housing

Page 9: Apresentação Why Brazil? Why now?

Brazilian population pyramid - 1950 / 2030

Page 10: Apresentação Why Brazil? Why now?

Brazil´s growth

Page 11: Apresentação Why Brazil? Why now?

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.

Page 12: Apresentação Why Brazil? Why now?

Transformation of social classes2003-2008

Page 13: Apresentação Why Brazil? Why now?

Family distribution by income group

Page 14: Apresentação Why Brazil? Why now?

Housing shortage by region and components in 2005(residences in thousands)

Page 15: Apresentação Why Brazil? Why now?

Real estate credit overview

Term: up to 30 years

Payment as percentage of income: between 25 and 35%, with an average of 30%

Financing: up to 80%

Interest rates: from 5 to 12%, with an average between 9% and 10%

Page 16: Apresentação Why Brazil? Why now?

A market comparison:2007 and 2030 (in R$ Billion)

Page 17: Apresentação Why Brazil? Why now?

Annual residentialproperty investments

Page 18: Apresentação Why Brazil? Why now?

Total FDI vs. Real Estate FDI

Page 19: Apresentação Why Brazil? Why now?

What is Brazil´s interest rate tendency?

Page 20: Apresentação Why Brazil? Why now?

Minha Casa Minha Vida; Federal Housing Program

60 billion in investments with 34 billion in subsidies

1,000,000 housing units until 2010

Page 21: Apresentação Why Brazil? Why now?

Infrastructure as an anti cyclical policy

Federaly funded program to accelerate growth (2007 - 2010)