Brazil Real Estate Fundamentals Remain Strong

At National Real Estate Investor, David Lynn reports on the fundamentals underlying the Brazilian real estate market. While overall economic growth is moderating, Lynn says, "Brazil exhibits positive fundamentals for short- and long-term real estate performance."

While some are voicing concerns about inflation and the potential for an overheated economy, projected GDP for the next year remains between 3.5-4 percent, exhibiting healthy, not overheated, growth. Moreover, inflation has been moderating month-to-month during 2011. Rising wages prices account for much of the inflation pressure, along with elevated prices for raw goods. While inflation is on the high side, Brazil remains in a state of nearly full employment, with wages continuing to rise.

A strong employment environment is providing Brazilian workers with more disposable income. The financing environment has also become more accessible, with legal reforms in 2005 and the government-sponsored Minha Casa Minha Vida program for low income homebuyers. The result is a growing pool of homebuyers in market that currently lacks adequate supply of suitable housing.

According to Mr. Lynn, the fundamentals for Brazil real estate look good for the next decade. He notes that the Brazilian national growth acceleration program (PAC2) will be spending R$104.5 billion (US$65 billion) on logistical infrastructure by 2014. The World Cup in 2014 and the Olympics in 2016 will also bring billions in investments toward a better transportation system, especially with respect to tourism centers. He is also bullish on the housing market: "The homebuilding industry continues to boom, and demand continues to outstrip supply. The housing deficit of the country remains and is not expected to be resolved in the next decade."

With global economic growth waning, Brazil continues to outperform with solid projections for the coming year. Even so, in the current global environment, investors need to be selective in order to protect capital and maximize return.

The national growth acceleration program (PAC2) provides numerous opportunities for investors, particularly with respect to real estate. Improved transportation infrastructure enhances access and increases value. Industrial developments provide jobs, increasing valuations in surrounding areas.

In the northeastern state of Ceará, MDMY Investment sees tremendous opportunities for residential housing investments near major new infrastructure developments. Their Altavila project in Caucaia is designed to cater to middle-income homebuyers in a rapidly-growing district of Ceará state.

As with David Lynn, MDMY Director Jamie MacDonald-Murray foresees solid growth in the area throughout the next decade. "In this area of Brazil, large-scale investment has already been committed and is assured for the next five years at a minimum. We have tens of billions of reais coming into Pecém and tourism development at the beach centers. For international investors, the situation is ideal. Local real estate provides extremely high probability of return. Moreover, in the current global environment, considering the Brazilian government's investment plans, I would even call Ceará real estate a safe haven investment."

MDMY Investment is a Brazil-based and operated Investment Company specializing in the Real Estate Development, Construction, Tourism, Security, and Environmental sectors. We offer overseas investors secure, high-yielding investment opportunities in several of Brazil’s fastest-growing business environments.

MDMY Investment S/A
Sala 1106, 1200 Av. Dom Luis,
Aldeota, Fortaleza.
Ceará, 61.160-230

Scott Johnson
Investor Relations
scott@mdmy.com.br
www.mdmy.com.br

This release was published on openPR.