The Two Differing Real Estate Opportunities In Brazil



Brazilian real estate development can be divided up into two major categories. There are rural and industrial developments. This includes the development of farms, logging operations, mines and housing for the workers in these industries. Such developments are often made in tandem with the agribusiness, mining or logging company involved in the local operation. Often overlooked, rural development can provide very profitable returns. This is especially true when mining or farming takes holds and production of products booms.


The second form of development is the urban development. We will classify suburban development, that is housing and retail around urban areas into this category as well. Urban development in Brazil is done by both domestic and foreign companies. Foreign corporations in Brazil will often pay premium prices to have offices in major cities such as Sao Paulo and Brasilia. Limited office and commercial space in downtown areas leads to big competition for this prime real estate space in downtown areas. This result is that prices will be substantially higher in these locations than in outlying areas.


A recent tactic developed by Brazilian real estate firms is purchasing land they think will become valuable in the future. This can be viewed as prospecting, and it is being done on an increasingly more frequent basis. With prime urban real estate already developed or purchased, Brazilian real estate firms are increasingly looking at land outside of cities. As cities sprawl, the prospectors hope that the boom will reach their lands and create profits.


A Leading Real Estate Development And Construction Company


At the forefront of the Brazilian real estate development and construction scene is a corporation called Construcap. It is based in one of Brazil’s largest cities, Sao Paulo. The firm has a long history in Brazil that dates all the way back to 1944.


Construcap currently employs thousands of employees, and has many vacancies posted to The firm even does projects outside of Brazil. One of the most famous projects of the real estate development firm is the Mineiro Arena. This stadium hosted soccer matches at the 2014 World Cup. Mineiro Arena has also received a platinum LEED certification for its environmentally friendly design and construction. This is the highest level of green sustainability that a construction project can be awarded.

Get a real feel for what Construcap is doing on YouTube.

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