Rio 2016: The story so far
Most of the UK is looking ahead to 2012 when the country hosts the summer Olympic Games. However, Brazilian property investors have their sights set further into the future, as when the games come to a close in London the torch will be passed to Rio de Janeiro.
The decision that Rio would be the 2016 host city was made by the International Olympic Committee in October 2009. The city fought off competition from Chicago, Madrid and Tokyo.
Dividends of this announcement are already paying off for the Brazil real estate sector which is flourishing as people flock to invest before prices rise.
But what work is being done to ensure that the Brazilian property buyers’ investment pays off?
Investing in Rio and the Olympics
To hold an event like the Olympic Games, a country requires a serious amount of cash from both its government and private investors.
Earlier this year, classification agency Standard & Poors gave the State of Rio de Janeiro an investment rating of BBB, which is the same as Brazil as a whole.
S&P cited the state’s "diverse and strong economy" as a factor behind the decision.
BusinessWeek reports that the agency added, in relation to Olympic investment: "We expect that the private sector will play a very significant role in making these investments a reality."
Governor Sergio Cabral described the move as an "international seal of quality for current management".
The Olympic Games were also described as a "key driver" in the increased investment, which was identified a report by the National Economic and Social Development Bank, that will be going on in Brazil over the next few years.
A total of BR$ 274 billion (£101 billion) is expected to be placed in infrastructure projects in between 2010 and 2013, an increase of 37.3 per cent.
Visitor numbers and the Olympics
Large events like the Olympics draw in a huge amount of tourists, who will all need somewhere to eat, drink and sleep.
Last month, AFP reported that plans were in place to expand the number of hotel rooms in Rio by one third before 2016.
Tourism secretary Antonio Pedro Figueira de Mello told a press conference that the number of beds available will increase by 9,000, on top of the 28,000 which already exist.
Further work will take place across the country to expand the number of hotel rooms available before Brazil holds the Fifa World Cup in 2014.
Chris Fuzinatto, director of Embratur, the Brazilian tourism office for the UK and Ireland, said: "The ProCup Hotels programme, designed to increase the number of rooms and modernise hotel infrastructure in the host cities and nearby tourist centres, will have BR$ 1 billion (£345 million) of investment.
"There are also plans for a significant boost in hotel infrastructure, it is estimated that over 1,100 hotels will submit plans to expand."
In addition, funding of R$ 1 billion in credit was provided to the hotel industry for the building and refurbishment of properties. More favourable lending conditions will be given to sustainable or energy-efficient properties.
Working with other Olympic authorities
As the nature and size of the games has changed new problems have presented themselves to the host cities. In February Rio signed a deal with the authorities in Vancouver to exchange information and create a system of communication for the coming years.
One of the major challenges faced by any host city is how to control the environmental impact of the games. Upon signing the agreement, Eduardo Paes, the mayor of Rio said: "The environmental model of the Vancouver Games should be seen as an inspiration for Rio."
Next month, the commission is due to receive the International Olympic Committee Coordinating Commission for the first time to present their work so far.
Carlos Arthur Nuzman, president of the Rio 2016 organising committee, said: "We are building the organisation of the Games and the lessons in planning are among the best legacy the event will leave behind."
