Brazil and the Biggest Opportunities Created by the Current Crisis

June 06, 2020.

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Investing in Real Estate Market

The biggest opportunities created by the current crisisis going to have to do with supercharged US dollar buying power.

What will global property markets look like after the covid-19 pandemic? I do not believe we're going to see 40% to 70% drops like we did in the wake of the 2008-09 global crisis when real estate markets worldwide took huge hits with few exceptions. However, localized markets and individual properties will experience those levels of price reductions, even if only in US dollar terms.

The Colombian peso and Brazilian real have weakened significantly against the US dollar since the virus crisis began. These countries are oil exporters and commodity producers.

The values of their currencies depend on their abilities to sell those products on the global market in dollars and then trade those dollars back into pesos and reais.

Will the Colombian peso or Brazilian real return to pre-virus levels once the crisis abates and oil prices begin to recover? Probably.

"Meanwhile, properties in these countries will stand out as crisis-level buys for U.S. dollar holders."

In Brazil, the real estate investment funds are sitting on cash they were looking to invest pre-coronavirus crisis. They'll want to invest that capital as soon as they're able.

While these funds typically look for big deals, they might also work with real estate agencies to buy blocks of inventory if the prices are right. At the same time, individual investors will come off the sidelines once they can begin traveling again.

Do your market research now and be prepared to act quickly when the world's borders are again open.

Investing in Agriculture market

Food has become a strategic success factor to survive and prosper in the modern world. According to World Economic Forum.

Trees don't care about a virus. And, even with less attention from caretakers during the lockdown period, they keep growing through both health and financial crises.

South America nowadays is considered a top place to buy, lease and manage agricultural lands for profit. The region accounts for 59% of global exports of oil seeds, 11% of grains and 37% of meat; with Argentina, Brazil, Chile and Uruguay being among the top 10 food exporters.

As the biggest country in South America, Brazil offers unlimited opportunities in agriculture, having more spare farmland (see map below) and renewable water than any other country, or over 250 m hectares out of 300m hectares of arable land and as much renewable water as the whole of Asia.

Food has become a strategic success factor to survive and prosper in the modern world. According to World Economic Forum , demand for food will increase on 70% by 2050, with gradual shift of customer preferences to meat, organic, nutritious food. This fact is a real challenge for human race, considering land and water resources are limited, maldistributed and shrinking .

Brazil has always been known for its important role concerning the export of commodities, being the main exporter of coffee, soy, meat and orange juice. The recent progress concerning the development of new technologies in the country has given it the title of strongest economy in Latin America, and how we have said before, the trees do not care about the virus and the dollar currency gain force to foreign investors buy lands investing in this sector in Brazil.

The following areas are the ones that will benefit from the agribusiness' growth:

· Machinery Industry: Its main challenge is to provide new technologies that would benefit the harvest and the soil management. It is an open door to IT professionals, agricultural engineers and agronomists.

· Seeds Industry: It aims to improve the quality of the seeds. Its main challenge is to be able to produce more occupying less land. It has a high demand for researches.

· Fertilizer Industry: The challenge here is to restore the soil damaged by monocultures and to adapt it to new crops during the off season. It demands Marketing and Sales professionals.

· Pesticides Industry: Its main challenge is to conceal the use of pesticides with a growing demand for organic food.

· Ethanol Industry: Focused on the development of biofuel, this sector has been facing a transformation moment due to foreign investments and the merge of already existing groups.

"Our Specialist in Agribusiness and our team would be delighted to answer any questions. "

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