Five real estate deals for the Brazil World Cup

Today's Financial News - Posted August 28, 2008

“The buildup to 2014 will see dramatic infrastructure upgrades, media attention, and marketing of the destination cities…and that’s before you even think about the feel-good factor that will be generated by the buzz leading up to 2014.” — Ronan McMahon

by Ronan McMahon

Baltimore — (TFN): Following fast on the footsteps of late June’s landmark agreement between the U.S. and Brazil on the liberalization of air routes between the two countries. Brazil’s tourism minister has announced that Brazil will invest $23.5 billion in transportation and infrastructure projects in the leadup to its hosting of the 2014 World Cup. He named the cities of Sao Paulo, Rio de Janeiro, Niteroi, Belo Horizonte, Porto Alegre, Fortaleza, Recife, Olinda, Natal, Maceio, and Brasilia as beneficiaries.

The buildup to 2014 will see dramatic infrastructure upgrades, media attention, and marketing of the destination cities…and that’s before you even think about the feel-good factor that will be generated by the buzz leading up to 2014. The tournament itself will see a tourism boom and unprecedented global exposure for Brazil and the host cities.

With air traffic expected to double from 4 to 8 million trips during the month of the tournament, airport infrastructure will get a $2.5 billion upgrade. Rail links will get a major upgrade, including the construction of a bullet train between Sao Paulo and Rio de Janeiro. One billion dollars will be spent on stadium upgrades, with four likely to be built from scratch.

The first major benefit for the real estate investor will be demand for accommodation for corporate lettings linked to 2014 infrastructure projects. This has started, but look for this trend to accelerate early next year. Read on to learn four more ways to profit.

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