AAA backs forecast for rise in Brazil real estate values

The Brazilian real estate sector is expected to help boost the foreign direct investment (FDI) in Brazil even further, said Anthony Johnson of Alternative Asset Analysis (AAA), together with a US-based expert.

According to David Lynn of New York-based Clarion Partners, Brazil’s real estate market offers “attractive opportunities” to investors. Writing for National Real Estate Investor, he continued to explain that there are a number of “positive fundamentals” that suggest that the market will be stable and will offer good returns in the years to come.

Anthony Johnson, an analysis partner at AAA, which encourages investment in alternative assets - and particularly in emerging economies - commented, “We welcome Mr Lynn’s assertions that Brazilian real estate could be a safe haven for investors in the coming years.

“His comments support our own view that Brazil is a fantastic place to invest as it will continue to see economic growth in the future.”

AAA back up their claims about Brazil with figures recently published by the Brazilian Central Bank, which show that foreign direct investment inflows rose in the first six months of this year to their highest levels since 1947, which was when records began. The total invested was US$32.5 billion, which represented 67 per cent of the total FDI for the whole of last year - suggesting that 2011 could be an even better year for Brazil than 2010.

The interest in alternative asset classes has helped spur investment in Brazil, according to AAA, which cited the success of sustainable forestry projects, such as those run by Greenwood Management, which offers direct investment opportunities in plantations of non-native timbers such as eucalyptus and teak. “The market for these timbers products is enormous and growing at the moment, thanks to massive economic growth in Asia,” explained AAA. The organization also cited the upcoming FIFA World Cup and Olympics 2016 as a major driver in the Brazil domestic steel industry - a major market for sustainably produced charcoal.

About Alternative Asset Analysis:
The remit of Alternative Asset Analysis is to analyse and provide news on the global performance of a wide range of alternative asset classes including, but not restricted to, commodities, real estate, forestry, foreign exchange, hedge funds, private equity and venture capital.

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