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As good as it gets for Brazil property investment?

On the back of predictions that Brazil's GDP growth for next year is now expected to be at least 4.5% comes the news that we may well be poised on the brink of the biggest ever Brazil real estate boom. Add to this, Moody's investment grading awarded to Brazil and Brazil property investment starts to look extremely promising.

Unlike many countries where the so-called green shoots are few and far between, Brazil's green shoots are sprouting steadily and fast. Hardly a day goes by without another encouraging economic statistic. These demonstrate, in the words of Moody's, Brazil's ‘strong economic and financial resilience'.

This week has seen Brazilian stocks soar to their highest weekly increase. The stock exchange, Bovespa, rose by 1.6% with shares in Petroleo Brasiliero SA and Gafisa SA, Brazil's second largest developer, climbing the most. Gafisa gained 3.4% after JP Morgan commented that it's positive about Brazil real estate builders. Along with Gafisa, JP Morgan's top choice in the Brazil property development sector is PDG Realty SA Empreendimentos. PDG shares gained 4.9% after JP Morgan's announcement.

According to Fabio Cardoso, partner and director of Adinvest Consultoria based in Rio de Janeiro, "Money keeps steadily coming in and the rally (on Bovespa) has been slow and steady". Cardoso is so upbeat about Brazil's current economic situation that he believes "Brazil could pass through a real estate boom that we haven't seen for generations".

All the signs are there. After a slight blip in Q4 2008 and Q1 this year, Brazil's economy has bounced back and the signs are so positive that economists are continually revising their predictions for GDP growth next year - upwards. If last week, forecasts were 4.2%, this week they are 4.5%. By next week, they well may be higher.

Brazil's international presence is increasing - the fact that President Lula was at President Obama's right-hand side in the Pittsburgh G20 ‘family' photo is proof that Brazil is now centre stage. Brazil's massive foreign reserves have made it a net creditor to the International Monetary Fund, a role usually reserved for the richest countries. Rio de Janeiro may well host the 2016 Olympic Games - Lula will be backing his country's bid on Friday in Copenhagen.

In times of uncertainty, Brazil is showing resilience and economic strength. Brazil is undoubtedly a country to look to, not just in the future, but now. With the Moody's investment rating (Brazil is only the second country in South America to achieve this) consolidating the low risk scenario, now is surely the time to make that property investment in Brazil.

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