Brazil Real Estate: Bullish Outlook

Experts are bullish on the outlook for Brazilian real estate, but also point to several challenges.

Local and foreign investors are bullish on the outlook for real estate in Brazil, as are local brokers, a Latin Business Chronicle survey of ten leading experts shows.

"Equity International is extremely bullish as relates to real estate opportunities in Brazil," says Gary Garrabrant, CEO of Equity International. Equity, the US company chaired by real estate legend Sam Zell, has invested in three major real estate companies in Brazil - Gafisa, BR Malls and BRACOR.

Brian Carr, the co-head of Morgan Stanley Real Estate Investing - Americas, is also bullish. "We view the outlook for the real estate sector in Brazil very positive as the key ingredients for success are present in the market," he says. "The country is continuously attracting foreign capital that is investing in real estate mainly because the fundamentals for investment in property have been improving over the last 24 months...The outlook for development in real estate assets, mainly residential, is very positive given the latent demand for housing in the country and improvement in affordability for buyers who previously were not able to acquire their own homes."

And investors like Advent International are also following the sector closely. "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...