The only investments to end the year in negative territory were shares listed on the São Paulo Stock Exchange (Bovespa,) finishing with a loss of 18.11% for the year. Exchanges worldwide fared little better. The Dow Jones Global Index, a composite of exchanges worldwide, finished with a loss of 15.64%
Economic consulting firm Economatica of São Paulo, released a compilation of performance figures for 2011 showing that equity securities were one of the few asset classes to lose ground.
The study listed the following results for various asset classes for 2011:
Gold 16,46%
Dollar 11,84%
Euro 8,64%
Savings 7.5%
Bovespa -18.11%
The survey, appearing in Epocá Magazine, does not mention Real Estate, by any reckoning a major asset class.
Measured by the fipe-ZAP index, real estate prices rose on average 24.9% during 2011 through the end of November. This index has been incorporated in official statistics of econometric data used by the Brazilian government.
Zap is a partnership between O Estado de São Paulo, Brazilôs newspaper of Record and all its related publications both print and online, and Rede Globo, a media conglomerate with radio, television, cable, and newspaper properties all through Brazil. The two media juggernauts account for more than 90,000 classified ads per month for the sale of property of all types in all locations throughout Brazil. Fipe-Zap is a partnership of partnerships, being a collaboration of ZAP with The Foundation Institute of Economic Research (Fipe,) an economic think tank.
Though the figures reflect asking prices only for apartments and houses for sale throughout Brazil, and specific types of property in specified locations, the universe of data is sufficiently broad to give a good indication of trends across all types of property and all locations throughout Brazil.
Despite the high rate of growth there seems to be no letup in sight, at least not in the near term, according to financial market observers like Forbes. In a recent analysis Forbes wrote that the housing market boom should continue through 2017 http://www.forbes.com/sites/kenrapoza/2011/12/14/brazil-housing-market-booming-til-2017/. Interestingly, Forbes featured in its analysis Fortaleza residential properties.
Residential properties in Fortaleza, Ceará, a northeast state in Brazil and home to one of the FIFA World Cup games in 2014.
Foreign Investment interest in Brazil has historically been lopsidedly directed to the gateway cities of São Paulo and Rio de Janeiro, already massively developed and fully, if not richly priced. But 2011 has seen the beginning of a diversion of foreign investment to other locations throughout the country, Ceará, the state of which Fortaleza is the capital, the first among these ââ¬Ånewââ¬Â foreign investment destinations. According to figures released on December 23 by the Ministry of Labor and Employment, Ceará attracted R$29.8 Billion in foreign investment, second only to São Paulo with R$42.8 Billion, but ahead of Rio with R$15.8Billion.
Are you looking to buy property in Brazil ? Ceara , Sao Paulo , Florianópolis , Ilha De Itamaracá , Fortaleza
Are you looking to rent property in Brazil ? Belo Horizonte , Japaratinga , Bahia
Author
Nick Marr
I am an internet entrepreneur with a passion for driving big audiences and a love for real estate. I have had plenty of ups and downs which has given me the experience to help others launch their own businesses. I enjoy projects that save consumers time and money, challenge convention and add real value to peoples lives.