Brazil Guide

BRAZIL GUIDE Introducing the world’s greatest economic success story of the last 10 years.

BRAZIL GUIDE CONTENTS THE GREATEST ECONOMIC SUCCESS STORY

3

INTRODUCING BRAZIL 4 DEMOGRAPHIC 6 CONSUMER MARKET 6 INCOME BRACKETS 7 WEALTH 7

GEOGRAPHY & NATURAL RESOURCES 8 ECONOMIC OVERVIEW 9

BANKING & FINANCIAL SYSTEM 10 CURRENCY 11 MORTGAGE MARKET 11 TOURISM 12 FOOTBALL WORLD CUP 2014 13

OLYMPIC GAMES 2016 14

HOLIDAY LET MARKET 14 PROPERTY 15

FOREIGN OWNERSHIP OF PROPERTY 17 INTRODUCING NORTHEAST BRAZIL 18 LIFESTYLE 20 DEMOGRAPHICS 20

ECONOMIC BACKGROUND 20 TOURISM 21 PROPERTY 23

U N D O U B T E D LY T H E G R E AT E S T E C O N O M I C S U C C E S S S TO RY O F T H E L A S T 1 0 Y E A R S

Brazil’s performance over the last decade has been nothing less

ahead of previous expectations. Industry, services, agriculture,

the population. Not only this, Forbes ranked Brazil in 2012

than impressive and today it is one of the world’s most attractive

energy – whichever segment you look at Brazil offers some

as the fifth country in the world with the largest number

investment destinations. Over the last decade, Brazil has seen

impressive statistics.

of billionaires. Brazil offers a huge consumer market with

record levels of foreign direct investment which is only set to

significant purchasing power.

continue, with a recent survey rating Brazil as the most attractive

Hand-in-hand with this exceptional growth, there has been

location for future foreign investment in Latin America.

an important shift in the wealth dynamics of the country.

This guide has been written to provide you with a clear overview

Brazilians today have more money than they have ever had

of the many aspects of this incredible country from demographics,

Economic growth has maintained a steady, high pace of growth

with overall wealth increasing significantly. Millions have been

to banking to buying property. We also spotlight on Northeast

and being one of the world’s top performers. Currently in sixth

lifted out of poverty and the middle-class has swelled to an

Brazil, a region of Brazil whose profile is growing considerably on

place, Brazil will move up to be the world’s fifth largest economy

incredible 104 million Brazilians that represent over 50% of

a global scale.

3

INTRODUCING BRAZIL

5

FAST FACTS SIZE: 8,514,877 km² POPULATION: 202.4 million (IBGE) CAPITAL: BRASILIA LANGUAGE: PORTUGUESE

INTRODUCING BRAZIL DEMOGRAPHICS

CONSUMER MARKET

Brazil is the 5th most populated country in the world.

It is an essentially young nation with over 68% of the population in the 15 to 64 age bracket (source: IBGE). Within this bracket, a significant majority are aged between 15 and 40. Nearly 85% of Brazilians live in urban areas with the most populated states being Sao Paolo, Minas Gerais and Rio de Janeiro.

Brazil represents an attractive consumer market both in terms of its size and the growing purchasing power of Brazilians. The market for services and goods has huge potential particularly in sectors such as second homes, private medical insurance and holidays (especially air travel and holiday rentals) where more and more Brazilians are now spending money. Brazil is already the world’s eighth largest market for cars, the fourth most important for personal computers and the third biggest for cosmetics. By 2020, Brazil’s consumer market will represent a total value of US$1.6 trillion. (source: The Boston Consulting Group, 2013)

6

INCOME BRACKETS A huge driving force behind this giant consumer market is the increased purchasing power of Brazilians. As the country’s economy has grown raising employment levels and increasing salaries, households are becoming more affluent, reducing the percentage of the population in the lower income brackets with a corresponding rise in the higher brackets. This shift in wealth can be clearly seen in the following table comparing income brackets in 2010 with projections for those in 2020.

INCOME BRACKET

WEALTH Reducing poverty and subsequently increasing wealth in Brazil has been one of the country’s biggest achievements. According to The Boston Consulting Group, over the last ten years, extreme poverty has been reduced by a massive 89% and GDP per capita has increased 43% since 2006. This increase of wealth means millions of households have become part of an emerging middle class, a tendency set to continue. By 2020 some 5.3 million new households will enter the R$30-60,000 income bracket, 1.6 million more will earn between R$60-90,000 and an extra 1.9 million will join the over R$90,000 income bracket. Between them, these new affluent households will constitute 37% of the population, compared to 29% in 2010. At the upper end of the income scale, the number of Brazilian high net-worth individuals is expected to increase by 44% over the next ten years to bring the country total considerably ahead of those in Canada, Switzerland and Singapore (source: Knight Frank Wealth Report 2014).

Less than R$6,000 R$6,000 to R$30,000 R$30,000 to R$60,000 R$60,000 to R$90,000 Over R$90,000

2010 (% OF POPULATION)

2020 (% OF POPULATION)

11.6% 59.1% 17.6% 5.2% 6.5%

7.1% 55.5% 22.5% 6.7% 8.1%

(Source: Redefining Brazil’s Emerging Middle Class, The Boston Consulting Group 2013)

7

GEOGRAPHY & NATURAL RESOURCES Brazil’s large landmass lends itself to a huge variety of geographical elements and by extension, a richness of natural resources found in few other countries.

Much of the country is sub-tropical or tropical.

Brazil contains 12% of the world’s surface water and over half the fresh water supplies on the South

American continent. Apart from some relatively small inland areas, Brazil rarely suffers from drought. The rainforest around the Amazon River is a particularly important wetland area and forms one of the most diverse ecosystems on earth.

The central part of the country is mostly savannah and this part of the country together with the south made up of fertile lowland plains provides ideal agricultural conditions for crops such as coffee,

8

sugar cane and oranges (Brazil is the world’s largest producer of all three), soybeans and cattle rearing.

Brazil also boasts rich underground natural resources – the world’s largest deposits of iron ore are situated in Serra dos Carajás in the north.

The third biggest reserves of bauxite, used to make aluminium, are also found in Brazil as well as huge offshore gas and oil fields. (source: Bloomberg.)

FAST FACTS GDP PER CAPITA: R$22,402 (2012, IBGE) GDP GROWTH 2013: 2.3% (IBGE) UNEMPLOYMENT RATE: 5.1% (February 2014, IBGE) INFLATION: 5.7% (2013, IBGE) INVESTMENT RATING: BBB (FITCH), BAA2 (MOODY’S), BBB- (S&P)

ECONOMIC OVERVIEW Brazil’s economic story over the last decade has been one of success and is characterised by strong and stable economic growth. As a result, Brazil is now the world’s sixth largest economy and represents one of the most important consumer markets globally.

GDP growth in 2013 was 2.3%. The International Monetary Fund forecasts 1.8% and 2.7% growth for 2014 and 2015 respectively.

Consumer spending and investment were two strong

pillars of the economy in 2013 – retail sales rose by 6.2% in the 12 months to January 2014 and investment increased by 6.3% (source: Brazilian Statistics Institute/IBGE). Yearon-year foreign direct investment inflows reached US$65.8 billion (source: Central Bank of Brazil). Unemployment figures are equally impressive and the 5.1% recorded in February 2014 was the lowest February rate since 2002. Inflation has remained stable over recent years, hovering between 5% and 7%. In 2013, it was 5.7%. (source: Brazilian Statistics Institute/IBGE).

9

The Brazilian economy is rich and diverse with an advanced services sector, huge offshore oil and gas reserves (Brazil is the world’s ninth largest oil producer), and vast natural resources. Commodities such as minerals and ironore are one of the backbones of the nation’s economy, representing a large percentage of its GDP. Brazil is energy selfsufficient and one of the world’s largest producers of food. Agriculture accounts for nearly a quarter of the country’s GDP and record crops in 2014 made

BANKING & FINANCIAL SYSTEM

Brazil the largest producer of soybeans and one of the biggest of harvested crops, according to the Brazilian Ministry of Agriculture.

Brazil has an established banking system, monitored closely by the Central Bank of Brazil whose strict regulations ensure stability within the monetary system. The Central Bank is a major player among financial institutions in the country and intervenes regularly in currency purchases and interest rates.

Conscious of the need to maintain Brazil’s appeal as an investment destination, the Central Bank has recently been keeping currency fluctuations as smooth as possible and interest rates high. The official lending rate as set by the Central Bank currently stands at 11% (it was 7.25% in March 2013).

Like most emerging countries, Brazil has seen the effects of the slow-down in the Chinese economy (Brazil’s main customer for commodities). Growing public debt is a concern among government officials, although the Brazilian debt/GDP ratio of 54.7% is considerably smaller than both the UK and US (96% and 82.2% respectively, according to the Economist), and this issue has been earmarked as a priority in the next budget after the November 2014 elections.

The FIFA World Cup in June/July 2014 moved Brazil firmly into the international spotlight with matches held in 13 cities throughout the country. The Olympic Games to be held in Rio de Janeiro in 2016 will ensure Brazil continues to be in the international limelight for the next few years. Both sporting events are expected to attract hundreds of thousands of tourists to Brazil as well as global media attention.

Brazil’s three largest banks in terms of assets are the BB (Banco de Brasil), ITAU and Caixa Economica Federal (state-owned and the largest mortgage provider). Numerous foreign banking entities are present in Brazil including Santander and HSBC (the fifth and sixth largest respectively), Citibank and Credit Suisse.

10

CURRENCY Brazil’s currency is the Real (R$/BRL). Along with other emerging market currencies, the Real lost considerable ground against the US dollar during 2013 reflecting the slowdown in the Chinese economy. It has since regained some value thanks to the Central Banks intervention, although economic analysts such as ScotiaFX believe the Real will remain low against the dollar during 2014 to maintain Brazil’s competiveness in international markets.

MORTGAGE MARKET Brazil has a relatively young mortgage market, although it is growing fast on the back of the domestic demand for property. According to statistics issued by the Brazilian Association for Mortgage Lenders (ABECIP), mortgage lending rose by 32% in 2013 and loans approved by the Caixa Economica Federal (the main lender with nearly 70% of the market) reached a record R$134.9 billion last year. 65% of loans were for new-build properties.

This upward trend shows no sign of falling with year-on-year lending in February 2014 up 52%.

The ABECIP forecasts a 15% increase this year and despite such growth, mortgage loans still only account for 7.7% of Brazil’s GDP, an amount expected to reach 10% by 2016 (compared with 80% in the US).

Lenders may only borrow the equivalent of 30% of their income and must usually make a down payment of 30% on the property. This together with booming employment ensures a stable mortgage market with a very low risk of default on payment or a subprime crisis.

11

TOURISM Condé Nast Traveller describes Brazil as “vast, immeasurable, an overspill of cultures and climates, more like an incomplete planet than a very big country”. Brazil is still classified as an emerging tourist destination. However, the World Cup and Olympic Games are set to change this.

On the back of these sporting events, Brazil’s tourist profile has risen. In a recent Minube survey, Brazil was voted the third most popular tourist destination

after Spain and France.The World Economic Forum ranks it the top country for natural beauty in the world as well as one of the best for business travel and Lonely Planet tipped Brazil as the best place to visit in 2014.

According to official tourism statistics (2012 the latest available), 5.7 million foreigners visited Brazil in 2012, a 5.6% increase on the previous year. Figures point to a higher number in 2013 and with over one million tourists for the World Cup alone, 2014 is likely to set a visitor-number record.

12

Although foreign visitor numbers are increasing, Brazil’s tourism is fundamentally domestic. A Ministry of Tourism survey found that less than a quarter of Brazilians go abroad for their holidays with the vast majority of Brazilians choosing a destination within Brazil itself. The same survey revealed that the favourite region for almost 47% of holidaymakers is the Northeast, with almost 60 million domestic tourists, that represents nearly 30 million domestic visitors to the north east region alone each year.

FIFA FOOTBALL WORLD CUP 2014 The FIFA Football World Cup hosted by Brazil between 12th June and 13th July 2014 had excellent results both for the country’s economy and tourism. Over one million tourists visited Brazil for the World Cup exceeding the 600,000 estimates.

Brazilian airports saw 16.74 million passengers arrive between 10th June and 13th July representing an 11.3% increase on the previous year.

In terms of spending, Visa reported that credit card spending between the 12th and the 15th June, the World Cup opening ceremony days, totalled US$27 million which is an impressive 73% increase on the same period of 2013 and 47% more than the opening days for the Confederations Cup in June 2013.

FIFA President, Joseph Blatter, awarded the Brazil World Cup 9.25/10, a higher mark than given to South Africa, saying it was the best World Cup ever and it would be difficult to beat its success.

13

OLYMPIC GAMES 2016

HOLIDAY LET MARKET

Rio de Janeiro hosts the next Olympic and Paralympic Games, an event that will further boost Brazil’s profile as a top tourist destination. With a budget of RS$7 billion (US$2.9 billion), the Games are expected to attract around 380,000 visitors to the city and surrounding areas with Olympic venues, according to Ministry of Tourism forecasts. The Olympics is predicted to generate direct investment of approximately R$30 billion between 2009-2016, with a further R$90 billion indirect investment.

Brazil is a relatively new arrival on the holiday letting scene, but the sector has seen spectacular growth over the last two years with further expansion expected. The increase in purchasing power among Brazil’s middle classes has led to more people taking holidays and a keen interest in holiday lets as a better value alternative to hotels. Holiday rentals are also perceived as a good accommodation option for the World Cup and Olympics because of the lack of hotel infrastructure. Revenue from holiday lets in Brazil currently accounts for around 3.2% of GDP and the Ministry of Tourism recently announced its intention to raise this to 6% by 2020.

Rio 2016 spokesman, Bernardo Domingues, explains, “The expected gross economic impact of the 2016 Games on the Brazilian economy is US$51.1 billion, according to a University of São Paulo study commissioned by the Ministry of Sport in 2009.”

14

PROPERTY The Brazilian property market is currently one of the world’s fastest growing. Property values doubled between 2008 and 2012 and whilst this rate of growth has moderated somewhat, rates of growth are still well ahead of most other countries. According to The Economist, house price growth in Brazil was the second highest in the world in 2013, second only to the US. Statistics from the national housing index (FipeZap) point to an increase of 13.7% in 2013.This was even higher in some areas such as Fortaleza in Northeast Brazil where prices rose by 14.1%.

There are several factors behind this growth: - HOUSING SHORTAGE - the Brazilian Housing Commission (PNAD) believes that Brazil has a deficit of at least 5.2 million units. Some of this demand is being met by the national housing programme, Minha Casa Minha Vida (MCMV), building 3 million homes throughout the country by 2015.

- GROWING MIDDLE CLASS – Brazil’s middle classes are burgeoning and with it, their increased purchasing power and demand for quality property.

15

- GROWING POPULATION – the 200 million+ population is growing at a rate of 0.9% per annum, putting further pressure on the demand for housing.

These three factors mean the need for new property is expected to continue for the medium-term future.

Brazilian property represents excellent investment value according to Knight Frank whose Wealth Report 2014 ranks Sao Paolo as one of the world’s top residential property markets.TheTelegraph puts

Brazil in the top best places to invest in property in the world, primarily because “property investors scent a once-in-a-generation opportunity”.

Foreign buyers are present in the Brazilian property market, principally in the form of investment funds, but the market for property is essentially domestic.

Property analysts are reporting new trends among buyers whose demands are now more sophisticated.

Homeowners’ demands include more space – 3 bedrooms plus ensuite facilities – and properties with high-end fittings and extras such as fitness centres and swimming pools. Among Brazilians earning over US$45,000, 80% reported they had upgraded their housing (source: Redefining Brazil’s Emerging Middle Class, The Boston Consulting Group).

This tendency equally applies to holiday accommodation, either as a second home or holiday rental, a sector also experiencing huge growth in Brazil. Aluguer Temporada, the largest holiday let portal in the country, reported a 9% growth in rentals during 2013 and a sharp increase in rental rates. The Sao Paolo coast experienced the highest with rises of up to 275% for properties in prime beach locations.

16

FOREIGN OWNERSHIP OF PROPERTY Full ownership: Foreigners are generally permitted to buy immovable assets in Brazil with guarantees of full ownership and title. The only exceptions to this are that non-resident foreigners are not permitted to purchase agricultural land, marine land, islands or land within close proximity to Brazil’s international borders.

Expropriation: Foreigners buying property in Brazil have the same rights as Brazilians. These rights also apply to expropriation – should this occur because of public interest in the land, owners must by law receive fair compensation prior to the expropriation. According to Santander Trade, the “risk of expropriation is very low” and if it is carried out, compensation is received “especially for foreigners”.

Purchase process: The purchase process is straight forward and usually takes the following form: 1.

A contract outlining all the terms and

17

conditions of the sale is signed by both parties.

2. The buyer’s representative applies for a personal tax number on behalf of the buyer (Cadastro de Persona Fisica/CPF).

3. Completion of the purchase takes place with the signing of the title deeds before a notary public.

4. The title deeds and ownership are registered in the new owner’s name.

Mortgages: Non-resident foreigners are currently unable to take out a Brazilian mortgage. However, as the mortgage market continues to develop apace, this situation is likely to change. According to the 2014 Investment Guide produced by the Brazilian Embassy in the UK, “with the levels of foreign interest in property purchase in recent years, it is entirely possible that finance for foreigners will become available at some point in the future”.

INTRODUCING NORTHEAST BRAZIL

FAST FACTS SIZE: 1,558,196 km² POPULATION: 55.8 million STATES: Alagoas, Bahia, Ceará, Marahao, Paraiba, Pernambuco, Piaui, Rio Grande do Norte, Sergipe

INTRODUCING NORTHEAST BRAZIL Nor theast Brazil’s nine states are home to over a quar ter of the country’s population, despite not being one of the largest regions. Closest geographically to Europe, this was where the first Por tuguese explorers arrived in the 16th century and Bahia was established as Brazil’s first capital. Its proximity to the equator makes for a year-round warm climate with over 300 days of sunshine a year. Trade winds from the Atlantic cool down the temperatures and keep humidity down.

19

An area of stunning natural beauty, the region is most famous for its coastline, reputedly the most beautiful in South America and made up of mile after mile of white sandy beaches backed by sand dunes or tropical rainforest and bathed by the warm ocean waters.

The Ilha de Fernando de Noronha, an island off the coast at Natal, is one of the world’s finest wildlife reserves. The area inland suffers from drought and as a result, is mostly arid, although it transforms into a verdant landscape during the rainy season.

LIFESTYLE

ECONOMIC BACKGROUND

Perhaps more than any other part of Brazil, the Northeast shows the country’s mixed cultural heritage most strongly.

Here, the indigenous European and African roots are manifest in the architecture, cultural events and cuisine.The cities of Fortaleza, Olinda, Penedo and Sao Luis with their well-preserved colonnial buildings rank among the finest in the world. Salsa dancing, African drumming competitions and Carnival celebrations mark the cultural calendar.

Key industries in Northeast Brazil have traditionally been tourism – based around the region’s spectacular coastline – and agriculture, principally made up of sugar cane, cocoa and tabacco production plus cattle rearing. Other pillars of the region’s economy are formed by gas and oil extraction – before the discovery of the huge offshore fields, around 35% of Brazil’s production came from here – and salt production.

The all-year pleasant weather lends itself to an outdoor lifestyle with the focus on beachgoing and sports, particularly watersports such as surfing, kitesurfing and snorkelling, and of course, Brazil’s national passion, football. Not for nothing was Northeast Brazil home to 4 of the 12 World Cup host cities – Bahia, Fortaleza, Natal and Recife.

However, over the last decade, the economy has diversified and as a result, the region has experienced considerable economic growth and increased wealth. In the period from December 2012 to September 2013, Central Bank figures show that Northeast Brazil was the fastest growing area in the country with a 2.1% increase in the region’s GDP. According to the Brazilian Statistics Institute, this growth has mainly been due to massive investment to the tune of US$50 billion by foreign and Brazilian companies in refineries, car factories and steelworks. Examples of this investment in the area include a new industrial zone and port with an investment of US$7 billion constructed in the city of Pecém in Ceará state and the Fiat car factory at Goiana (Brazil is now Fiat’s largest market).

DEMOGRAPHICS The state of Bahia leads the population rankings with 15.1 million inhabitants, followed by Pernambuco (9.3 million) and Ceará (8.8 million). Like most of the country, Northeast Brazil has a young population.

20

As a result of these large-scale investments, exports from Northeast Brazil are booming – they are now worth in excess of US$18.8 billion compared to US$4.6 billion in 2000 – and the region has increased its contribution to the national economy from 12.7% in 2004 to 13.5% in 2010 (latest figures available).

Job creation is rapid, particularly in the services sector and unemployment remains low at around 6%. Another indicator of the buoyant economy in the area comes from the regional bank, the Banco do Nordeste do Brasil whose loans in the region have increased 776% over the last ten years. (source: the Brazilian Statistics Institute and Ministry of Employment.)

Renewable or ‘green’ energy has also emerged as a major economic player in this part of Brazil where the windy conditions in Bahia state are described as ‘perfect’ for producing wind turbine parks. Since wind energy was establised in Brazil in 2009, its capacity has increased rapidly and is expected to

reach 8GW by the end of 2016 (source: Renewable Energy Focus). Investment in wind turbine installation and manufacturing plants in Northeast Brazil has been intense by foreign companies such as Alstom, Enercom, GE Wind and Vestas.

Northeast Brazil has traditionally been the poorest region in Brazil with a GDP per capita of US$5,687 (source: 2011 figures from Brazilian Statistics Institute). However, recent economic growth has raised income levels in the region and this increased purchasing power has led to the construction of many hypermarkets and shopping malls across the north east, now a major consumer target for multinational companies.

Northeast Brazil is forecast to experience the fastest growth of upper-income households in the country along with the North. According to The Boston Consulting Group, there will be an additional 2.5 million households with an annual income over R$60,000 by 2020.

21

TOURISM Northeast Brazil has long been a favourite with both Brazilian and foreign tourists, attracted to the region’s stunning coastline and year-round pleasant climate.

However, tourism in the region has taken off during the last decade, particularly regarding visitor figures.

According to the regional tourism organisation, Fundaçao CTI-NE, between 2002 and 2013 there was a hike of 84% in the number of tourists visiting Northeast Brazil. A significant proportion of this increase came from Brazilians – 3 million more visited the area in 2011. The most recent official statistics point to nearly 32.5 million visitors in 2012.

This tendency is expected to continue as more Brazilians attain middle-class income status and with it, the purchasing power to travel. A survey carried out by the Ministry of Tourism in November 2013, found that 46.9% of Brazilians interviewed said they would be going on holiday to the Northeast within the next six months.

Tourism represents 9.8% of the region’s GDP and a reflection of its importance is evident in the largescale investment by the Ministry of Tourism in the area.The state of Ceará has received the largest sum (R$710 million) with Pernambuco and Bahia states receiving R$395 and R$346 million respectively.

22

In a recent interview, the national Secretary for Tourism, Policies Vinicius Lummertz, said that “the Northeast has a lot to offer the tourist. As well as the welcoming people, its many leisure options make it a very attractive holiday option”.

The region was home to no less than four World Cup host cities where a total of 21 matches were played.

Salvador and Recife had new stadiums built especially for the games, Natal’s stadium was rebuilt and the stadium in Fortaleza, which also hosted the Confederations Cup in 2013, was refurbished. Fortaleza was the only host city in the northeast where the national football team played during the World Cup.

PROPERTY Like the rest of Brazil, property prices in the north east have risen sharply over the last decade.Those in Fortaleza have shown particularly strong growth with an increase of 14.1% in 2013 (source: FipeZap Indes), above the national average of 13.7%, and up from 11.1% in 2012. Fortaleza ranks as the country’s fourth most expensive city for property with average prices of R$5,421 per square metre.

Indications of the high level of housing construction in Northeast Brazil can be found in the National Construction Index (SINAPI) where the northeastern states recorded some of the highest rises in the country in February 2014.

Piauí was top of the national rankings with an increase of 6.67% and Rio Grande do Norte and Ceará were sixth and seventh with rises of 2.02% and 1.94% respectively.

However, building rates in the region are less accelerated than in the south resulting in a more stable market. Some 755 new developments were started in 2013 in Northeast Brazil and the rate is forecast to grow by 2.3% this year.

The region has received the largest proportion of government investment in the country for the national housing programme, Minha Casa Minha Vida, although

24

this low to middle-income sector is no longer at the forefront in construction programmes. Analysts have detected a shift in market demand to more refined requirements with the emphasis on quality construction and higher specifications.

This demand for more sophisticated products is driven by Brazilian buyers looking for second homes in Northeast Brazil and buy-to-let investors

keen to make the most of Brazil’s emerging holiday rental market. There is also a marked trend among these buyers for so-called “build to suit” properties, constructed to customer specifications. Favoured locations for such purchases are in and around the best beach resorts in the area, and in developments with a good choice of leisure and sports facilities such as swimming pools, tennis courts, fitness centres and on-site amenities such as restaurants and shops.

24

Northeast Brazil’s pleasant year-round climate, stunning coastline and tourist attractions make for a strong second home and buy-to-let market.This added to the rapidly increasing purchasing power among Brazilians augers well for the property market in the area. For Felipe Cavalcante,the President of the national property and tourism development association (ADIT Brasil), the areas that stand out in the 2014 property market in Northeast Brazil are Fortaleza, Salvador and Recife.

For more information about Brazil and investment opportunities: Email us at: info@bric-investment.com Call us on: UK Freephone 0203 399 9439 USA Freephone (+1) 321 247 6897 Rest of World: +34 952 810 711

Alternatively, contact your nearest regional office.

USA

BRAZIL

SPAIN

HUNGARY

DUBAY

109 N Brush Street Suite 160 Tampa FL 33602

Av. Dom Luis, 1200 SLR 1304/1305 Torre 1 Business Ed. Patio Dom Luis Meireles Fortaleza, Ceara, Brazil +(55) 85 3013-1111

Centro de Negocios Puerto Banus, Oficina 39 29660 Nueva Andalucia Marbella, Spain

Mammut II - 3rd floor Lรถvรถhรกz utca 2-6.

1024 Budapest

Suite No 2210 Bayswater Tower Business Bay (Consulting office)

(+34) 952-810-711

(+36) 1 345-8211

(+971) 44 275-072

(+1) 813 315-3885

Publish Date: September 2014 Disclaimer : The information contained herein is solely for informational purposes intended to provide a general guide and does not constitute an offer by BRIC Group to sell, rent or lease real estate. Every effor t has been made to ensure current and accurate information is presented. All information provided is believed to be correct at the time of publishing and is given in good faith, although may be subject to change and/or error. BRIC Group disclaims any warranties or representation concerning the accuracy, correctness or reliability of the information contained within this document and instructs you to independently verify the accuracy of the information provided. All intellectual proper ty rights are retained by their owners.