The recent news that Brazil is to host the 2016 Olympic Games in Rio de Janeiro extends as not only fantastic opportunities for the country in the sectors of economy, tourism, infrastructure and sporting awareness, yet also foreign investment.

Brazil won the victory to host the Olympics against Chicago, Madrid and Tokyo, all located in countries that have hosted the games in the past. Following three previous attempts to become a host country, Brazil has finally won. Especially beneficial to Brazil is the Olympic bid win following the FIFA World Cup host position. The two highly important sporting events will be held within two years of each other, creating a wealth of growth opportunities throughout the country.

Having been positioned as one of the world’s largest economies for several years, predictions on economic growth for 2010 has began to soar following the Olympic hosting announcement. Even the Sao Paolo stock exchange has seen impressive growth in the days immediately following the announcement, especially in companies relating to tourism and infrastructure.

The growth of Brazil’s economy will assist with continued strength in the country’s real estate market. These increases are beneficial to investors for strong and steady capital appreciation potential.

Tourism clearly receives immediate benefits from the sporting events, set to increase considerably during the lead up. Accommodation and transport are being upgraded to cope with the demands of mass tourism from hosting major worldwide sporting events. The benefits of renewed interest in the region and continued mass market opportunities will assist buy-to-let investors, along with improving exit strategies to early investors.

Renovations and upgrading of airports around the country are being planned, along with new transport networks such as the high speed trains between Rio de Janeiro and Sao Paolo. Modern infrastructure developments have so far only been carried out in the north-east, where recent interest in tourism and real estate investments have been attracting strong influxes of European and North American investors.

The infrastructure developments will provide long awaited upgrades around the country, enabling improvements and modern construction. All of the upgrades, tourism, economic growth and awareness will be highly beneficial for present and future real estate investors to the country. Infrastructure and construction will also benefit the domestic population, assisting the growing nation of increasingly middle class residents.

Considered to present an important transformational opportunity for foreign investment in Brazil, the expected influx of buyers in the coming years will assist with bringing Brazil into an established market status.

This entry was posted on Tuesday, October 6th, 2009 at 14:22 and is filed under Brazil, Emerging Markets. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.