Foreign Investment Sought for Real Estate Projects in Northeastern Brazil

Brazilian companies are seeking foreign investment for tourist and real estate enterprises, as well as buyers for holiday real estate. Ongoing projects in the region amount to between R$ 5 billion (US$ 2.3 billion) and R$ 6 billion (US$ 2.8 billion).

"São Paulo - Companies from Brazil are seeking investment abroad for tourist and real estate projects in the northeast of the country, as well as buyers for holiday real estate in the region, renowned for the beauty of its coastline. These are the objectives of an agreement signed between the Brazilian Export and Investment Promotion Agency (Apex) and the Association for Real Estate Development in Northeastern Brazil (Adit Nordeste).

Our primary targets will be European countries such as England, Ireland, Portugal, Spain, Italy, Holland and the Scandinavian nations, but in the mid-term, the idea is to attract Arab investors as well. "The Arabs are an interesting option, since the sector is fully compatible with their investing profile," said Cavalcante.

R$ 2.4 million (US$ 1.1 million) will be invested in commercial actions forecasted in the agreement with Apex. The agency expects to attract at least US$ 8 million worth of investments in 2007, and US$ 16 million in 2008.

Growing Northeast

The participation of the northeast of Brazil in the Gross Domestic Product (GDP) of Brazil rose from 13.8% to 14.1% between 2003 and 2004, according to figures recently disclosed by the Brazilian Institute for Geography and Statistics (IBGE). The GDP of the nine states of the Northeast reached R$ 248.4 billion (US$ 115.8 billion) in 2004, according to the IBGE. The region includes the states of Bahia, Sergipe, Alagoas, Pernambuco, Paraíba, Rio Grande do Norte, Ceará, Piauí and Maranhão." read more

By Alexandre Rocha, ANBA