^{Special report by Samantha Tanner}

With the 19th World Cup officially over in South Africa and with Spain still celebrating their first ever win of the coveted World Cup trophy, all eyes are now turned towards Brazil for the 2014 World Cup.

Brazil, who have won the World Cup a staggering 5 times, have not hosted a major tournament since 1950 and preparations are well underway in securing a lasting legacy to Brazil, much like South Africa has achieved. Football is a way of life in Brazil and it is hoped this passion mixed with an exuberant carnival atmosphere will keep global eyes on a very exciting decade for the South American country.

Not only is Brazil hosting the football World Cup in 2014, but 2016 also sees it host the Olympic Games in Rio de Janeiro. This of course means that major investment is needed in the country’s key cities in order to improve infrastructure, visitor safety and build brand new stadiums for the hundreds and thousands of football fans.

These two major contests could not come at a better time for Brazil, the country is at the forefront of the world’s emerging economies and has become a leading global exporter. Through political and economic reform Brazil has seen more people enter into the middle classes than ever before and was largely unaffected by the recession. In fact, it was Brazil that recently lent $14 billion to the International Monetary Fund.

However, Brazil needs major investment, mainly in infrastructure, to be able to host a global competition. Road networks are sub standard and railways have taken over 20 years to complete, although work is moving much faster now. There will be comparisons made to Brazil’s BRIC counterpart China which hosted the 2008 Olympics and managed to do so through major reinvestment in roads, trains, airports and, of course, building the venues.

ADIT Brasil, the government funded association for inward investment in real estate and tourism knows that the world will be watching Brazil closely. The project’s President, Felipe Cavalcante says: “It is anticipated that Brazil will spend $US 50 billion on various projects in the 12 host cities. In comparison, Germany needed to spend just $US 12 billion to prepare for the 2006 World Cup. So getting Brazil ready for the World Cup is a big project and huge challenge which we are looking forward to.”

It is estimated by the Brazilian Football Confederation that the cost alone of construction and remodelling of the stadia in the host cities in 2014 will be more than $1.1 billion. Added in to this is the millions that need to be spent on basic infrastructure including a high speed train connecting Campinas, Sao Paulo and Rio de Janeiro and $2.8 billion upgrade plan in 10 of the host cities. Due to the vastness of Brazil it is anticipated that of the 500,000 fans expected to arrive in 2014, they will need between 6 and 14 flights to see the matches, meaning that investment in the airports is essential.

“The World Cup has given Brazil a focus for its projects and a fixed deadline,” says Cavalcante, “but I believe that Brazil’s economic growth and tourism and investment potential would be strong even if we weren’t hosting such a prestigious event. The 12 host cities are also the 12 major cities of Brazil so they would have naturally attracted investment and development.”

While Brazil would appear to be self sufficient in making headway in their investment plans, foreign investment is also an essential part of improving the country’s infrastructure. ADIT Brasil are working with members and international investors who are expected to profit from the country’s sporting events. At its annual conference in May, an estimated $1.8 billion of business was agreed.

Tourism is the key plan in Brazil, like South Africa they wish to portray a much different image that is created in the media. The Brazilian Minister of Tourism, Luiz Barreto, says: “Our target is to reach 2014 with sixty-five tourist destinations highly qualified to supply tourists and 10 million foreign visitors a year.”

Property ownership is also on the up in Brazil, with international property investors keen to secure a bargain before the tournament drives up prices. This has also been helped with the development of a new international airport in the northeast of the country in Natal.

Dale Anderson from overseas property experts Experience International explains that now is a great time to invest in property in Brazil: “when a country hosts a major sporting tournament such as the World Cup and Olympic Games, it has a positive impact on the economy and in turn, through demand for accommodation, the real estate market. Brazil is an emerging superpower in terms of economic growth, with a stable climate, a wealth of natural resources, not to mention the fantastic weather conditions and attractive property prices. We expect a real estate property boom over the next few years in the run up to the 2014 World Cup.”

With the potential for a massive economic boost the World Cup and Olympic Games will have on Brazil, the country is already reforming the way in which foreign investors can buy property. Anderson explains: “Foreign investment is encouraged in Brazil, there are no restrictions for foreigners buying property and ownership is 100% freehold.  Brazil has just introduced local mortgage products for residents and within 12-24 months foreign products are expected to drive demand and push real estate prices higher.”

“There are certainly deals to be done in Brazil at present,” he adds, “purchasing land plots in Brazil has become a popular investment choice as it allows investors to see maximum capital gains, up to 20%, from early stage investment and many developers offer discounts for multiple plot purchases.”

Brazil will be looking very closely on the legacy that the World Cup left in South Africa and whether the media’s sole focus on the country for a month propelled the continent into the minds and tourists and investors, each hoping to own a little piece of Africa. After all each country have their own domestic problems which they are aiming to solve to attract the rest of the world and each country has something to prove in that it is just the developed world that can have all the fun.

All eyes are certainly now turned towards Brazil to see how the country propels itself into the forefront of sporting success and foreign investment.

If you would like more information about investing in Brazil for the future, please contact us.

For more information on Experience International, please visit www.experience-international.com.

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