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Known for being the largest city in South America, São Paulo can be intimidating to those looking to explore this hot Latin American destination for the first time. However, native resident Roberto Sfeir shows us that the city is just as accessible for those twenty-something’s looking for a good night on the town as it is to regular visitors returning to soak up Brazilian culture in Brazil’s largest city. I recently spoke to Brazilian Roberto Sfeir, who gave me his insider views on São Paulo living.

Why go to São Paulo? What does the city offer?

“São Paulo is one of the biggest cities in the world, good for restaurants, shopping malls, clubs and bars. It is a city that never stops. You can always eat anywhere; it has a high level of international food, high-class health care and good hotels. The best way to get around is by having a car or by taxi. Brazilian people are very open to foreign people because [they are] always happy to meet someone new.”

What is a typical day for a resident of São Paulo?

“During the week, work. During the weekends, hanging out with friends and family — a lot of time with family. Brazilian people are very close to their family members and attending social events such as movies, bowling and going to clubs.”

Where is the best place to live within São Paulo?

“The best place to live, based on statistics, is Mooca. ‘Paulistanos,’ people who live in the city of São Paulo, made this statistic. Mooca is a neighborhood with a lot of green areas, very secure, with beautiful views and close by there are shopping malls and supermarkets.”

Known as one of the fastest growing districts in São Paulo, Mooca is home to nearly 65,000 inhabitants, and has profited through recent growth in the construction industry. As Sfeir mentioned, the shopping malls have contributed to the increase in economic prosperity in the area, which has captured the interest of investors worldwide. Reflecting the city’s diversity, the population in Mooca is a mix of Spanish, Portuguese, Croatian, Japanese, Bolivian, Peruvian, and Lebanese, with the predominant residents being Italian. Mooca is an attractive place to live in the city not only because of its status as an industrial suburban neighborhood on the rise, but also because of the profitable opportunities in the real estate market that draws investors and international prospective buyers.

As for “must-sees” in the city, Sfeir recommends Ibirapuera Park, Moema, Vila Madalena, and the Pinheiros region. Ibirapuera Park is São Paulo’s principle urban park, reminiscent of New York’s Central Park. Walkers and joggers take advantage of the large open areas and many locals and tourists visit the park for leisure or to go to the convention center located there. Some of the features of Ibirapuera Park include the Obelisk of São Paulo, Cicillo Matarazzo Pavillion, and the old city hall. Five minutes away from the park is Moema, a district that has seen a growth in population since the 1970s. It is the home of one of the largest and oldest shopping malls in Brazil, as well as the Museum of Modern Art. Moema also holds many of São Paulo’s notable events, like São Paulo Fashion Week. Vila Madalena is a neighborhood located in Western São Paulo, and is renowned for its bohemian art and culture as well as its nightlife. The graffiti-covered neighborhood boasts an array of bars, restaurants, and galleries. The Pinheiros area is considered the new downtown area of São Paulo. Known as the wealthiest district in São Paulo, many of São Paulo’s elite call Pinheiros home, including four former mayors of the São Paulo. Pinheiros is also the location of many international company’s headquarters, and is a great spot for seeing the most elegant neighborhoods in the city.

When it comes to the nicest restaurants in São Paulo, Sfeir recommends going to Jardins. Jardins covers multiple districts in the city, and boasts exclusive restaurants, hotels, and nightlife.

Those looking for an authentic Brazilian meal and older atmosphere, Sfeir recommends Restaurante Fuentes, located in the Centro district. For a refined and romantic atmosphere, Sfeir says Leona is a “very beautiful and sophisticated place.” As far as the best Italian in the city, Sfeir cites Terraço Itália located on Avenida Ipiranga. For French Cuisine, Dois Coppe. Sfeir says four great Japanese restaurants in the city are Jam, Koi, Nakombi, and Gendai. For great Chinese, try China Lake and for great Spanishfood, try Luz Molinos. For those looking for great pizza in São Paulo, Castelões is the way to go.

Sfeir’s otherrestaurant recomendations in the city include Fogo de Caho, Varanda, Jardineira, Rubayat, Barbacoa, Gero, Família Manchini, Dom Piero, ViccoNostro, Fasano, Sonho de Amarelo, Cantina do Sargento, Bolinha, Dudinha, Dona Lucinha, Colher de Pau, Mocotó, Bexiga, Dom Curro, Marcel, and Pimentel.

What about nightlife in São Paulo?

When it comes to the local nightlife, Sfeir says visitors can expect “a lot of drinks and a lot of fun!” Because São Paulo attracts international visitors and also caters to a younger native crowd, entertainment is one of São Paulo’s biggest industries. Sfeir recommends the Moema neighborhood as one of the best nightlife spots for its bars and shows. He says many of the locals call it the “Ipanema of São Paulo.”  For visitors looking to immerse themselves in Brazilian culture, Sfeir recommends Vila Madalena, “for its bars and salsa.” For those looking for a more upscale club experience, Sfeir says Pinheiros and Itaim offer a wealthier club atmosphere. Sfeir cites the Pink Elephant, Royal, and Mokaias some of the most popular clubs in the city. The Pink Elephant, located in Dacon Tower in Jardins, serves an international VIP crowd. Royal, located in the Centro district, caters to a crowd of jetsetters and fashionable young people with its dimly lit atmosphere and large dance floor. Originally a Miami club, Mokai nightclub came to São Paulo exuding an essence of hip-hop and celebrity lifestyle, with DJ Kaskade and Lady Gaga having been on the guest list.

When is the best time to come to São Paulo?

According to Sfeir, “the summertime, November and December, or January and February” are the best times to visit the city. “In February, there is a carnival in Brazil which is very fun and wild,” says Sfeir.

Typically held 40 days before the Catholic holiday of Lent, Carnival is held in Brazil and is the largest celebration of its kind. Traditionally held in Rio de Janerio, Carnival attracts tourists from all over the world and offers visitors a chance to celebrate with locals by experiencing Brazilian music, dancing, parades, and Carnival balls. Carnival in 2011 is taking place March 5-8, and February 18-21 in 2012, both in Rio de Janerio.

Anna Patrick is a Communications major at Boston College and a frequent commuter between Boston and the Washington DC metropolitan area in Northern Virginia. A seasoned traveler, Patrick has lived in London and traveled extensively throughout Mexico, Canada, Austria, Germany, Italy, France, the Czech Republic, Greece, Scotland, England and Turkey.

How did Zell get started? Most business tycoons on Forbes’ list of billionaires have to start somewhere. Zell started out renting homes to students and friends at the University of Michigan while attending law school. He bought and sold distressed property during the crises in the 80s. He eventually owned over 225,000 properties throughout the United States. He was born to Jewish immigrants from Poland that moved to the United States right before the Nazi invasion in 1939.

According to different sources there is a housing deficit of somewhere in the neighborhood of 7-9 million homes in Brazil. This year the Brazilian Government lauched a program called Minha Casa, Mihna Vida (My House, My Life). It has plans to subsidize and finance the construstion of 1 million homes for poor and lower middle class families. Brazil historically has high interest rates, but in recent years rates has come down significantly to around 9%.

Real estate companies in Brazil are taking advantage of this growing market. Giants like Lopes and Brasil Brokers, two of the largest real estate brokerages in the country have seen accelerated growth in recent years. In 2007, Brasil Brokers raised money on the Brazilian stock exchange and has been growing through acquisitions. Headquartered in Rio de Janeiro, they currently operate in 15 states throughout Brazil. The real estate franchise model is not as prevelant in Brazil as the United States or Europe, but Century 21 recently set up shop in Sao Paulo and has goals of growing to 1000 offices in the next decade. Lopes, one of the oldest real estate companies in all of Brazil has been growing its profits at a fast pace. Lopes posted Pro-forma Net Income of R$17.5 million (~$10 million USD) in 3Q09, increasing by 61% over 2Q09 and by 66% in relation to 3Q08. The company recently signed an agreement with online real estate marketplace VivaReal, to begin commercializing new construction projects as well as properties listed by its franchise arm Pronto Imoveis. VivaReal is founded by Brian Requarth, Web entrepreneur from California. The company is focused on building the largest marketplace for buying and selling real estate in the country. Having launched in May 2009, they are off to a good start with a few hundred thousand home buyers using its site to find properties throughout Brazil on a monthly basis. VivaReal is going after the +$1 billion that is spent on real estate advertising in traditional media in Brazil each year. With increased investments in real estate and more internet users than Germany, the company has a lot of room to grow.

With the recent announcement that Brazil will host the Olympic games in 2016 coupled with the World Cup in 2014, all eyes are on this emerging country with incredible potential. Some have compared Brazil’s current status right now to the United States in the 1950s. With a AAA rating from several major credit rating institutions and outstanding press from publications like The Economist, investors like Zell are counting on big returns in Brazil.

Sueli Pacheco is one of several highly respected real estate professionals from Sao Paulo whom believe that the worldwide economic crisis has indeed exerted great downward pressure on the Brazilian real estate market but nonetheless claim that the Brazilian real estate sector is strong enough to continue to grow; “simply at a slower more sustainable rate,” believes Mrs. Pacheco who says that:

“We expect this second semester to perform quite well. Key indicators show real estate appreciation will continue its upward path; just not as accelerated as before…”

The Worldwide Economic Crisis Is Having Very Little Effect On Both Brazil’s Residential as well as Commercial Real Estate Markets

Other very reputable professionals such as Celso Kocinas, Owner/Director of Zylber Assessoria Imobiliária — whose focus is primarily on the commercial real estate sector — tell us that Brazil is in very good shape right now. Even more astonishing is the belief that it is expected to continue to be that way.

“Demand for commercial real estate (stores, shops, offices, etc.) is extremely high right now. Property value and appreciation has been significant and rental rates are high. The real estate sector in Perdizes for example [a neighborhood in Sao Paulo] is very strong regardless of the economic crisis or the falling US dollar.” claims Mr. Kocinas who further says that:

“Everyone is looking to rent commercial property. If I had a handful of shops to rent out right now I could rent them out very quickly.”

So Where is all This Upward Pressure Coming From?

The downward pressure on Brazil’s real estate sector is definitely a consequence of worldwide economic turmoil, but where is the upward pressure coming from? Why do real estate professionals such as Mrs. Pacheco and Mr. Kocinas think so highly of this market?

* The Brazilian government is making major investments in infrastructure.
* Brazil’s Central Bank is continuing to lower interest rates.
* Brazil is continuing to see strong growth throughout the construction sector.
* The Brazilian government has raised the lending cap for Brazilian workers which are buying homes through government backed programs.
* In the past couple of years we have seen more and more real estate trust funds (REITs) enter the Brazilian market.
* Tourism in Brazil is flourishing.
* The government has made great strides in reducing the red tape associated with foreign investment in Brazil’s real estate sector.
* Big name real estate internet portals have begun paying attention to Brazil thus giving the market even more foreign as well as domestic exposure.

Conclusion

Key economic indicators as well as the testimony of respected real estate professionals such as Celso Kocinas and Sueli Pacheco make Brazil’s real estate market seem highly shielded against the current global recession. The accelerated way in which the Brazilian real estate market over performed for the past couple of years may indeed slow down, but it is highly unlikely that it will come to a halt.

Brazil skyline photo kindly provided by flickr

Ricardo Matrone, Show Manager of SISP

Ricardo Matrone: The economic crisis in August of last year affected the strongest markets in the United States, Europe and numerous Asian markets. Brazil was also affected, but the scope of the crisis was not as broad as other markets. The crisis was primarily among banks that provide loans to builders resulting in a more superficial economic downturn. Despite the tougher environment, Brazil is still a growing market with a housing deficit providing great opportunity for businesses, entrepreneurs and investors. These types of opportunities are difficult to find in today’s current economic climate. Investors interested in the Brazilian market have the opportunity to come here and forge partnerships with companies that know the local market, but need financial support. There are many companies throughout Brazil, especially in the interior of São Paulo and the Northeast who have knowledge of the market, they know and understand what can be done to execute a successful venture, however, they need investors and partners.

Before the economic crisis investors had a lot of different options for places to put their money, but with the current situation investors look to emerging opportunities and Brazil has been identified as one of those countries, whether it be partnering up with an existing company or launching your own venture. This is the vision that we have in our planning, media and promotion of the Salão Imobiliário (Real Estate Expo) also known as “Property Week”. We want the event to resonate with important investors coming from outside of Brazil so they don’t lose out on the business opportunities presented during this action packed event. So far there is great interest, mainly coming from the U.S. through broker associations in Florida and other states that have closely worked with large Brazilian companies through partnerships in the past making them more connected to the opportunity. We just want to make sure that others are aware of this event so they can participate as an exhibitor or an investor.

LatinWorld: Are you also interested in attracting attendees and exhibitors from the rest of Latin America?

Ricardo Matrone: The São Paulo Real Estate Expo has positioned itself as the largest event of its kind in Latin America and it continues to grow in popularity. Not only are investors interested in Brasil, but they are also looking at other countries in Latin America. For example, companies in Uruguay, Argentina, Chile and Costa Rica were present last year as exhibitors showing their products to investors from the U.S., Europe and even Asia. So this event is not only about Brasil, but other parts of the region as well. On the other side of the coin there is a growing interest and a strong representation of projects in the state of Catarina in southern Brazil. You’ll see comercial and residential projects and in many cases there are Argentines that look to buy a secon home or investment do to the proximity to country.

Find out more about SISP clicking HERE

Many people have been asking about property ownership in Brazil, and specifically about purchasing real estate through a foreign (non-Brazilian) company.  The short answer is yes, you can buy real estate this way, as opposed to using your personal name.  However, the process is lengthy and complicated.  That’s why we are here.

LatinWorld.com’s in-house Brazil expert, Diego Simon, is a native brasileiro with years of experience in the real estate market there.  Here´s what he had to say about the subject:

“The whole process may take from a few weeks to a few months (editor’s note: what in Brazil doesn’t take a few weeks or months?).  The first requirement for the process of real estate acquisition in Brazil by a foreign company is a previous authorization of the CDN (Conselho de Defesa Nacional). To acquire real estate, the foreign company needs to register at the “Secretaria da Receita Federal”, obtaining a tax number called CNPJ (Cadastro Nacional de Pessoa Jurídica).

‘The register of the company must be formalized with an inscription at the CADEMP (Cadastro de empresas da Área do DECEC), which is the Department of Exchange and Foreign Capitals (Departamento de Capitais Estrangeiros e Câmbio).  The request is made at the Central Bank of Brazil (Banco Central do Brasil).  To start the process, it’s necessary to have a photocopy of the company’s constitutive act, authenticated by the Brazilian Consulate at the company’s country of origin, and translated by an authorized translator in Brazil.

‘We strongly recommend the guidance of a specialized lawyer, with strong knowledge of Civil, Comercial, Tax, and International Laws in Brazil, to intermediate the buying process according to the Brazilian laws and, at the same time, preserve the interests of your company.

‘On the other hand, the acquisition of real estate under a personal name is much more straightforward.  It is recommended if possible, because the only requirement is the registration for a Brazilian CPF (Cadastro de Pessoa Física).”

Here is the official law on the subject, albeit in Portuguese.  “IN 568 de 08/09/2005, Art. 11 itens 5,9 e 10 da alínea “a”, combinado com os itens 1 a 6 da alínea “b” do inciso XIV do Art. 11 da Instrução Normativa do BACEN de n° 568 de 08/09/2005.”

Similarly, Cristina Adam from Kapital International had this to say:

“Your company will have to be registered as a tax payer. A property bought under a person’s name  registers with CPF, and companies register with CNPJ.  So the registered address can be the new property address and the documents required will be the social contract of your company and the passports of the owner(s) of the company.”

With such a complicated process, it is definitely in your best interest to find a top notch real estate attorney that understands the ins and outs of not only real estate ownership in Brazil, but also foreign company investment.  This will go a long way in making this process much smoother.

To browse Brazil real estate listings, visit VivaReal. They have a growing database of Fortaleza real estate, Florianopolis real estate as well as other cities.

Se o Português é a sua língua nativa, você pode visitar o portal VivaReal para buscar imóveis em São Paulo, como apartamentos em São Paulo e casas em São Paulo.

photo provided be luiz at http://www.flickr.com/photos/graduale/354513902/

Brazil is no longer that volatile speculative market where currency and interest rates were unpredictable. The country’s economic situation has recently become much more stable and both foreign and domestic investors are starting to see that. Amir Makansi says that investing in property in Sao Paulo right now is not only safe but it would also have these additional benefits:

“There are some well-known and consistently well performing neighborhoods, such as Morumbi, Perdizes, Moema and Vila Nova Conceição. These are already high valued neighborhoods, offering no risks for the real estate buyer.

In every business, including real estate, the profitability is directly proportional to the risk you are willing to take. If you buy a property at Perdizes, for example, the probability of having problems is zero. This is because Perdizes is a consistently well performing and valued neighborhood. On the other hand, you will pay a relatively high price, with less appreciation potential.

Another option is to bet on neighborhoods that tend to gain more value over time, such as the western part of Marginal Pinheiros, Casa Verde, or other neighborhoods that are growing.

If you choose places that are not totally established, there is a huge possibility that you will have greater home value appreciation over time; much higher than in the currently well performing neighboorhoods. Of course you will run a higher risk; the neighborhood may not fully develop and you may have problems with liquidity. All things which probably won’t happen in high value areas.”

Photo provided by: Fernando Stankuns taken from http://www.flickr.com/photos/stankuns/2646182539/

To search for Brazil real estate you can visit VivaReal.