A low vacancy rate and soaring square-metre prices make the Brazilian property market one of the dynamic growth engines in this emerging South American country. While primarily US-American investors have recognised the best opportunities on offer in the Brazilian property market, Germans have remained cautious by comparison – all except Franger Investment. This family-owned holding company is one of the first movers, which has also joined forces with local partners and achieved success in projects which are flourishing financially. Accordingly, the Brazilian branch of the company is focused on property development and its achievements are set to kick-start imminent moves to expand into other business fields.
Franger Investment has leveraged one of the key competitive advantages of the Brazilian property market which promises remarkable returns: almost all non-apportionable ancillary and servicing costs are borne by the lessee, which paves the way for an annual net return of up to 12 percent for existing properties. Better still, forecasts for property developments predict even healthier gains in the form of annual profits of up to 18 percent.