Brazil
Sothebys Bets on the Luxury Property Market in Brazil
Mar 24, 2009

Amid a global crisis that was the genesis of the real estate bubble burst, the real estate arm of Sothebys auction house is betting on the luxury property market in Brazil.

"We have a very aggressive vision for Brazil," said Mike Good of Sothebys International Realty. Good cites the demand of international clients who seek high-income and geographical diversification of real estate investments in Brazil to make it one of the company's four major target markets.

The goal is to partner with local builders and offer for sale or lease higher-end property. The portfolio now includes a range of properties from apartments in São Paulo, to houses on deserted beaches and the northeastern coast of São Paulo with a landing runway for private jets, to farms in center-west of the country.

According to Good, although the crisis has reduced the number of customers in high income available, the plan of Sothebys is taking a larger space in the market that is undergoing a temporary slowdown. "The pie fell temporarily, so we take it a bit more," he said to Reuters.

The company also is betting that demand for luxury properties should grow as the government and banks eliminate the restrictions on lending for property values. The day before, Sothebys signed a partnership with Santander to finance the purchase of such goods which exceed the 800 thousand reais.

Confidence is such that the group which landed the country in 2007 with an office in Sao Paulo, will increase this month to six offices across Brazil, including debuts in Rio de Janeiro and in Natal. Price, ensure the executive is not the main item of business. "We value what is unique," says Good.

By the end of the year the company plans to launch 40 buildings in the country, promises the director of Sothebys in Brazil, Fabio Rossi.

Source: Estadão Online - 24/03/2009

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