Why the Brazilian Real Estate Sector is Ideal for Foreign Investors

The Brazilian real estate sector provides attractive investment opportunities to both individual and institutional investors. Foreign investors can yield immense returns by putting their money into various ventures that the industry has to offer. Due to the strong economic policies and reliable tax systems, Brazil attracts many investors from different parts of the world. Real estate investors try to bridge the gap that exists in the housing sector.

Brazilian real estate business avails two major prospects for overseas investors: Active investment and intermediate term investment. An active investor must participate in investment for extended operational cycle say 20 years while receiving revenue. However, the investor can stay watchful and take a quick exit before the end of the project.

About the Brazilian Foreign Institutional Investor (FII)

The FII has a unique structure that provides monetary benefits in investment sharing, particularly in the real estate industry. Such benefits are hard to find in other types of securitization in Brazil. According to the nation’s law (Law8.668 of 1993), the operations of FII such as assets purchase and selling and sharing of profits are tax-free. The current legislation states that private investors are excluded from tax if they adhere to the rules of distribution, which clearly mentions that they cannot own over 10 percent shares in FII. The FII invests in office building, hotels, residential buildings, as well as commercial buildings.

Construcap

Construcap has set new standards of excellence in the construction sector of Brazil. In fact, the firm ranks among the ten greatest construction companies in Brazil. Founded in 1944, Construcap has been in charge of technological innovations and process development. It has contributed to the fast-paced growth of the lucrative real estate sector. The firm has demonstrated its unconditional support for environment sustainability and social responsibility through the use of earth-friendly construction methods and philanthropic initiatives respectively.

Construcap leverages the Integrated Management System to carry out processes such as commercial construction, rail, port, eroviarias, commercial and industrial buildings. The firm appreciates its workers by availing appropriate working conditions for them and investing their professional growth. It has implemented strong communication channels that strengthen its relationship with the community.

Leave a Reply