The Related Group, Donald Trump and Sam Zell are among the real estate investors looking to build residential housing and commercial space in Brazil, Uruguay and Colombia, the International Herald Tribune reports.
This represents something of a shift in one of the more popular industry storylines. Media reports chronicle the flow of South Americans residents purchasing property in high-end areas like Miami and New York.
Now the trend is reversing and South America is seen as safer for foreign and local real estate developers. The demographics and buying power of the populations in South America are also improving.
“Someone from the interior of Brazil, who in the past would have bought a home in Paris or New York, will now buy it in Rio,” president of the Association of Directors of Real Estate Companies in Rio de Janeiro, José Conde Caldas told the paper.
Winning the right to host the 2016 Olympics and the discovery of large offshore oil finds have helped boost Brazil’s investor profile, the paper reported. The average price of a four-bedroom apartment in Ipanema in Rio de Janeiro, “rose nearly six-fold from 2008 to 2012, exceeding $2.5 million,” according to the IHT.
Noting the need for upscale housing in the next decade, the chairman of Related Group, Jorge Pérez, told the paper he “has an eye to the Rio market,” and has created a new subsidiary, Related Brasil.
Click here to see the full American Real Estate Investors Target South America article.