Hotels see renewed interest from Brazil real estate investors
There is renewed interested from foreign investors in hotel property in Brazil, as currency exchange rates have led to a boost in tourism for the country, according to an expert.
Ricardo Mader, executive vice president at Jones Lang LaSalle Hotels, explains that the devaluation of the reais means it is currently more expensive for Brazilians to travel abroad and cheaper for incoming foreigners.
Many major Brazil real estate investors are turning to hotels as there is large potential for growth in the market, he says.
"Brazil has a very favourable medium to long-term outlook for hotel fundamentals, with much of the demand being driven by the emerging middle class," Mr Mader asserts.
Middle-class households now represent 52 per cent of Brazilians, up from 42 per cent in 2004.
Meanwhile, James Gonzalez, market analyst at Obelisk Investment Property, recently said that the Brazilian property market is a "prime investment environment" because of the economic and political stability in the country.
