One of the fastest growing investment opportunities for Brazil these days is something many people find surprising. The subject or commodity in question is simply…space. No, that doesn’t mean the huge expanses of the Universe beyond our planet but rather something very much more down to earth.
It is in fact actual storage space for physical items, mostly manufactured goods awaiting shipment to end-user customers. In particular this includes the clients in Brazil of online retailers, a rapidly growing sector of sales and marketing. All around the world the online sales industry is growing by leaps and bounds and the South American economic giant is certainly no exception. After all, it’s now the sixth largest GDP economy in the world.
This means that Brazilian storage space in warehouses and the like is at a premium and will certainly become more so as the online sales industry continues to develop. It’s true that the country’s rate of growth has slowed a bit in the last year or two but absolute growth is still happening. The knock-on effect is that this particularly healthy area of retail does require more and more infrastructure.
The expansion is impressive. Warehouse space in Brazil is currently doubling in size. The larger cyber-retailers include well known names such as Wal-Mart and Arezzo (based at Cajamar, near Sao Paolo). Overseas investors are also getting in on the act and this list includes the Goodman Group and Prologis Inc. (based in California but currently operating over four million square feet of warehouse space in Brazil)). The firm has constructed massive warehouse facilities for leasing, an opportunity that is rapidly being taken up. In addition, the Rio Company B2W Cia Digital is adding ten new warehouse complexes in various states of Brazil over the next twelve months or so.
Online sales in Brazil are expected to increase by twenty percent this year, to the equivalent of over fifteen Billion US Dollars. This will only serve to increase the demand for temporary storage and warehouse space before shipping the goods to their final destinations.
At present it’s estimated that there are over eighty million square metres of warehouse space in Brazil, the world’s sixth largest GDP economy. Commentators forecast that this will need to double over the next five years or so. Probably, that target will not be fully achieved. This is because a lot of it will require completely new built premises as much of the older property cannot be easily expanded for a variety of reasons. However, everyone will strive to reach that goal. All in all, this area of the economy continues to provide excellent investment opportunities. It’s a good bet that one of the largest companies currently investing millions in Brazil’s housing sector, EcoHouse Group will also turn it’s attention to this new and up and coming commodity, after all the EcoHouse Group’s EH International brand already invests millions around the world in other sectors including land, roads, office blocks and student accommodation.
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