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Recently released market study: Brazil Real Estate Report Q1 2014

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2013-12-23 19:31:04 - New Business research report from Business Monitor International is now available from Fast Market Research

Brazil presents an extremely favourable picture, with the hosting of major sporting events in 2014 and 2016 prompting the construction of suitable infrastructure. However, there have been reports that only a fraction of the available budget has been used and that numerous projects are running behind schedule, prompting concerns that the country - specifically Rio - will not be ready in time. These two events are also quite misleading, as they will give a short-term boost to the sector, and it is unlikely that this will be sustained after the 2016 Olympics, despite promises that a legacy will be left. However, the rising incomes of Brazilians is prompting a surge in popularity of high-end retail, with Fortaleza anticipated to post

positive results for high-end retail rents and net yields over our five-year forecast period.

Full Report Details at
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In addition to the downwards revision of economic data, the construction segment is also underperforming its potential. We have revised down our estimate for real growth in Brazil's construction industry value to 2.8% for 2013, with further downside risk. This is despite significant declines in industry costs, which resulted in deflation for the sector. However, a revival in housing starts, last-minute World Cup preparations and, on the infrastructure side, investment into new power capacity and airport expansion projects all provide bright spots and will drive the market out of this slump. 2014 looks to be a better story, with construction growth of 4.2% anticipated, perhaps due to a ramp up in building facilities needed for the 2016 Olympics.

Retail is another area of optimism in the Brazilian real estate sector. Between H211 and H212, many retailers experienced sales growth of almost 9% year-on-year (y-o-y), with some planning expansions based on these positive figures. The growth failed to continue into 2013; however, the Brazilian Association of Franchising still believes that 122 new retail centres will be constructed in the country over the next five years. This will result in the presence of luxury and international brands expanding. Brazil's high street rents will continue to rise and are already the most expensive in Latin America.

Key developments in the sector:

* Real GDP growth in 2013 is set to disappoint, at just 2.8%, with 2014 set to see just 3.0% year-on-year growth. Bright spots come in the form of the PAC II growth acceleration programme, the World Cup and the 2016 Olympics, with construction set to see growth of 4.2% in 2014. However, with reports that constriction for the latter event is behind schedule, it remains to be seen whether all the projects currently in the pipeline will be realised.
* There are a number of projects in the pipeline including the construction of a distribution centre in Sao Paulo. In September 2013, it was reported that US commercial real estate company Prologis had won a contract to oversee the facility, which is due to measure 576,000 square feet. It will be used by Walmart's local online division, WMB Comercio Eletronico.

Partial Table of Contents:

BMI Industry View
- Political
- Economic
- Business Environment
Industry Forecast
- Office
- Table: Office Forecast Rents - (BRL per m2/month)
- Table: Office Forecast Net Yield, 2010-2018 (%)
- Retail
- Table: Office Forecast Rents - (BRL per m2/month)
- Table: Retail Forecast Net Yield, 2010-2018 (%)
- Industrial
- Table: Office Forecast Rents - (BRL per m2/month)
- Table: Industrial Forecast Net Yield, 2010-2018 (%)
- Construction And Infrastructure Forecast Scenario
- Table: Brazil Construction And Infrastructure Data
- Table: Brazil Construction And Infrastructure Data
- Table: Brazil Concessions Programme
Macroeconomic Forecast
- Macroeconomic Forecasts
- Table: Latin America Sovereign Risk Ratings - Evolution Of Ability To Pay
- Table: Latin America Sovereign Risk Ratings - Evolution Of Willingness To Pay
Industry Risk/Reward Ratings
- Latin America Risk Reward Ratings
- Table: Latin America Real Estate Risk/Reward Ratings
- Brazil Risk/Reward Ratings
- Rewards
- Risks
Market Overview
- Office
- Table: Historic Rents, 2011-2013 (BRL per m2/month)
- Table: Net Yield, 2011-H113 (%)
- Table: Terms of Rental Contract/ Leases - H113
- Retail
- Table: Historic Rents - 2011-2013 (BRL per m2/month)
- Table: Net Yield, 2011-H113 (%)
- Table: Terms of Rental Contract/ Leases - H113
- Retail Sales Indicator
- Table: Retail Sales Indicators, 2010-2017
- Industrial
- Table: Historic Rents - 2011-2013 (BRL per m2/month)
- Table: Net Yield, 2011-H113 (%)
- Table: Terms of Rental Contract/ Leases - H113
Competitive Landscape
Company Profile
- BR Malls Participacoes
- Camargo Correa
- Construtora Norberto Odebrecht
- Multiplan Empreendimentos Imobiliarios
- Trisul
Demographic Forecast
- Table: Brazil's Population By Age Group, 1990-2020 ('000)
- Table: Brazil's Population By Age Group, 1990-2020 (% of total)
- Table: Brazil's Key Population Ratios, 1990-2020
- Table: Brazil's Rural And Urban Population, 1990-2020
- Industry Forecast Methodology
- Sources
- Risk/Reward Ratings Methodology
- Table: Real Estate Risk/Reward Rating Indicators

Full Table of Contents is available at:

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

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