Olympics 2016

Olympics 2016 - Brazilian Property Investors look to the Olympics - to be hosted for the first time on the South American continent in Brazil

President Luiz Inacio Lula da Silva says " Its about time a tropical country gets this opportunity and the prejudices are overcome".

Plans & Projections

The Brazilian Olympic Committee plans on spending almost R$30Billion or approximately U$D 17 Billion with new projects, improving infrastructure such as roadways, universities, hospitals and adding new residential tourism units to accommodate the wave of people who will be visiting. According to the Federal Union (Brazilian Governement) this will generate approx. U$D51Billion in business.

This will also generate employment. Just in the host City Rio de Janeiro there are projections for more than 15,000 permanent positions. The total number considered of new jobs created just for the preparations ia at 200,000. New hotels and restaurants will be opening all over the place. Sombody needs to fill those jobs. Besides the obvious, the event will generate long-term tourism benefits, increasing the numbers years after the conclusion of the 2016 Olympics. Sectors such as energy, banking and services should see a substantial growth. Barcelona has seen such positive effects three to four years afterwards.

Marketing and advertising sectors besides technology and communications will experience a new era. Importing industry will have to supply endless products. As a matter of fact nobody really knows the entire extent or scope of benefits.

There are already improvements being made for The World Cup 2014 with R$3.2 Billion being spent for the roadways, R$5.5Billion for railways, alomst a R$1Billion for modernizing the Antonio Carlos Jobim International Airport and half a billion of R$ for the ports in The City of Rio de Janeiro prior to winning the vote to host the Brazil Olympics.

More Investments for Sports Centers

Construction: R$813Million for Center for Olympic Training, R$144Milion for Olympic Arena in Deodoro, R$101Million for Radical Park (X-Games Style), R$92Million for Olympic Tennis Center, R$75Milion for Olympic Aquatic Sports Center, R$1,5Million for an Olympic Hockey Center and unidentified amount for Olympic Villa Civil Construction.

Reforms: R$21Million for Horseback Sports Center, R$5,2 for Olympic Target Shooting Center, R$2Million for Hockey Training Center.

Hotel Industry

The Brazilian Olympic Committee promised to have 49,570 units availablefor the Olympics and currently there are only 28,000. The International Olympic Committee made as a requirement 48,000 units. The common concensus is that Rio de Janeiro has lost it's status to the North East Region of Brazil as being the portal to the country and the ratio of units being constructed. This deficiency has to be recuperated.

Construction & Air Lines

Agenco construction & building company responsible for the execution of Pan American Villa (2007) which hosted the sports delegacies and coaches inspired by the Barcelona Olympics Villa was highly benefited after the event when it sold out the units in 24 hours.

Gol & Tam Air Lines also predict large increase in passenger numbers for the entire country for the event and years to come. Unitl 2013 Tam Air Lines will increase the number of its airplanes from 132 to 152 and Gol Air Lines from 108 to 127.

Tam Air Lines which sponsored tha Rio de Janeiro Candidacy for 2016 also predicts that the Brazilian market will double until 2014 but serious improvements at the airports arerequired and construction of few additional ones.

What does this mean for us as investors or real estate property buyers?

Together with the World Cup 2014 and the huge petroleum & natural gas deposit finds Brazil has become a major player on the international stage and is with China the leading emerging markets with as yet untapped potential both internally and as regards external trading opportunities. Real Estate infrastucture is only just beggining to take full speed and with a huge population to cater for, as well as close ties with Portuguese and Spanish speaking countries the only direction for Brazilian Real Estate seems to be up.

How to access these markets is critical if success is to be the outcome. Through our partners we can provide internal Brazilian advisers who have the pulse of the nation and the contacts to ensure smooth investment procedures.