Sotheby’s International is preparing a special portfolio of property for wealthy Arabian investors keen to take advantage of strong yields in a relatively unexposed international market. The Director of Sotheby’s in Brazil, Mr. Fabio Rossi will present the selection to groups of investors from the United Arab Emirates, Qatar and Bahrain looking at commercial real estate, farms, and hotel and tourist enterprises.
In an article for www.brazzilmag.com Mr. Rossi explained that “The return of commercial real estate in Brazil ranged from 0.8% to 1% per month”, this is against a backdrop of a global average of 3% to 4% per year. The Arabian investors have shown a keen interest in the tourism and hotels market and are particularly curious to the affects the world cup in 2014 will have on the segment. With 5 groups playing a strong hand in discussions it is believed they will look to invest some $50million each, and with 3 of the groups keen to partner with Brazilian companies, it could get very competitive come September.
Mr. Rossi goes on to say that Brazil, out of the BRIC economies has now become the number one target destination for Arabian investment. Yet the market still remains in its infancy, foreign investment into Brazilian real estate is 5% of the total compared to a global average of around 30% to 40%.
