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Commercial Real Estate in Brazil Ahead of the Game

Brazilian real estate continues to have the edge over most others in the world after a record third quarter in sales volume. Along with China, Brazil is the preferred destination for real estate investment opportunities.

A Q3 2011 survey into commercial real estate published by Real Capital Analytics finds that the total volume of sales in commercial property in Brazil reached US$35 billion. This is the highest quarterly level ever seen in Brazil, reflecting the big investor interest in Brazilian real estate.

Real Estate in Latin America Stays Hot

The survey reveals that sales in the Americas generally fell by 50% on this year's second quarter. This marked decrease was prompted by the slowdown in the US mortgage market. However, on a continental level, Latin American real estate continues to boom with plenty of positive movement.

At the forefront of the property market in Latin America is Brazil where commercial real estate - like residential property - is a hive of activity. "Hotels are of particular interest, especially in 2014 World Cup destination cities," comments Gary Hardacre, CEO of Obelisk International, "and our market research is also noting large investments in office units in Rio de Janeiro and Sao Paulo."

Real Capital Analytics found that Chile and Mexico were also favoured real estate investment spots in Latin America, although on a smaller scale than Brazil. Both represent stable economic markets, although Chile is less well-known for its property investment. The positive movements in Latin America commercial real estate confirm the region's investment potential.

China and Brazil Investments

According to the survey, worldwide commercial real estate sales volumes reached US$568 during Q3, a year-on-year rise of 34%. 2011 is proving a particularly good year for commercial property investment since volumes have already surpassed levels in 2008 when the US real estate market crashed.

Globally, China and Brazil stand out as the top spots for investment in commercial real estate. Of the four BRIC nations, they are the only two now favoured massively by foreign investment in property. Interest in Indian commercial property has diminished dramatically and in Europe, Poland has overtaken Russia as a preferred location.

"Brazil is an obvious property investment target because of its size and market," says Mr Hardacre. He also points out that Brazilian property investment is improving all the time - "Investors with Obelisk International have seen clear progress in market conditions over the last 12 months as the property market in Brazil comes to maturity."

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