Commercial Real Estate in the Bahamas, Brazil and Mexico
November 19th, 2013 by Diane Moore
Commercial real estate markets in Brazil, the Bahamas and Mexico are thriving. Many investors are flocking these markets to take advantage of their potential and numerous opportunities. The Brazil, Bahamas and Mexico real estate markets are recovering at a very fast rate than other real estate markets.
Some of the reasons these markets are thriving are increased investments, good government-investor relations, tax advantages, political stability and emergence of new industries, as explained below.
Commercial Real Estate in the Bahamas
The Bahamas is an amazing place located in the Caribbean about 40 miles from South Florida. It is a chain of 700 islands with pristine white sand beaches and warm crystal clear waters. The Bahamas were a British protectorate which attained independence in 1972. The Bahamas consist of 21 districts. These districts include Bimini, Acklins and Crooked Island, Cat Island, Freeport, Exuma, Fresh Creek, Green Turtle Cay, Governor’s Harbor, Harbor Island, Inagua, High Rock, Kemps Bay, Mash Harbor, Long Island, Mayaguana, Nicholls Town, Berry Island, New Providence (the capital), Rock Sound, Ragged Island, Sandy Point, Rum Cay and San Salvador.
The capital, Nassau, is thriving because of tourism, investments and international banking. The capital is situated in the island of New Providence and is connected to Paradise Island via a bridge. Paradise Island is home to the famous Atlantis resort casino which hosts the worlds’ biggest outdoor aquarium and a dazzling water theme park. The other islands, popularly known as the Family Islands, are calmer and have low population. Most of the settlements on these islands are picturesque towns and small farming villages. Some of the well-known residents of the Bahamas are the Bacardi family and Sir John Templeton.
These people run their international investments from the Bahamas. Famous sports celebrities have made the Bahamas their second home. They include Barry Bonds, Ernie Els and Michael Jordan who have invested in real estate in the Ocean Club Estates in Paradise Island. The Bahamas have modern infrastructure, international airports, fine resorts and hotels, and excellent telecommunication facilities.
Why Invest in Commercial Real Estate in the Bahamas
The commercial real estate market in the Bahamas is experiencing one of the biggest booms because of the following reasons:
- Thousands of Asians, Europeans and Americans are making the islands their second home and buying property. Recently, the islands are experiencing an increase of 10-15% in property sales. In addition, many investors are flocking the country because of it is a quality tourist destination which is eco-sensitive.
- The country is stable politically hence a safe haven for investments.
- There are numerous tax advantages in the country. In the Bahamas, there is no corporate income tax, personal income tax, capital gains tax, withholding tax, estate tax, sales tax, employment tax and business tax.
Hottest Commercial Real Estate Spots in the Bahamas
- Long Island
The Long Island commercial real estate market is thriving. Long island is made up of both rocky cliffs and white pristine sandy beaches. The coastline at Long Island stretches for over 80 miles. The Northern part of the island is made up of sloping cliffs while the Southern part is made up of low hillsides. The island has a population of about 3000 people making it an ideal place for investing.
Clarence Town is the most known town on the island for its harbors, bays and beaches, historic salt ponds and beautiful twin churches located on hilltops. Stella Maris is another hot spot for commercial real estate. The area has several quiet beaches, full service marina and international airport. Currently, a British investment group called Port St. George is building a new marina, golf course, residential properties and a canal at Stella Maris.
The breathtaking 365-island Exuma is a real estate jewel in the Bahamas. Exuma hosts sea kayaking, sailing and has some of the best beaches in the world. Exuma commercial real estate generally consists of vacant land and vacation homes. The first 5-star Emerald Bay Resort was opened in Exuma in 2010 by Sandals Resorts International. The resort has hotels and a golf course. The island also hosts the Oceania Heights which is a gated community consisting of luxury villa rentals and other real estate properties. There are numerous profitable investment opportunities in Ocean Heights and other parts of Exuma.
- Paradise Island
Originally known as Hog Island, Paradise Island is a flourishing tourist destination and real estate hub. The island hosts the famous Ocean Club estates which is a playground for the wealthy and famous. Ocean Club Estates has a resort known as One and Only Resort, a spa and an 18-hole golf course. The major commercial properties in Ocean Club are condominiums and luxury homes. Generally, Paradise Island and Ocean Club Estates are home to some of the country’s high-end commercial and resort properties, hotels, clubs and marinas.
Commercial Real Estate in Brazil
Brazil is the largest Latin American nation in South America and covers about half of the continent. The country can be divided into various regions namely the Brazilian highlands/plateau and the Amazon River basin in the South and North respectively. The country has a population of approximately 201 million people. Many investors have confidence in the Brazil commercial real estate market because of the nation’s rising industrial growth, large middle class, increased foreign investment, escalating consumer confidence and an improved investment environment, among other reasons. As the global real estate industry continues to recover from the recent downturn, Brazil continues to capture the international investment limelight.
Why Brazil Commercial Real Estate
There are many reasons why the commercial real estate market in Brazil is doing exceptionally well.
Some of the reasons are:
- The nation has maintained a healthy economic growth rate even during financial downturns. The economy is performing well due to the emergence of gas, chemicals, minerals, tourism, construction and petroleum industries.
- Most of the Brazilian population does not have debts and the mortgage sector is reasonably leveraged compared to other nations.
- There is a high deficit of housing. Between 5 to 30 million people do not have proper housing. This makes Brazil a massive and largely untapped market which is ripe for commercial real estate development, especially in the low-cost housing sector where many people reside in slums and other types of unsavory conditions.
- Brazil is a tourist destination because of its beaches, enormous natural resources and sunshine. Both pleasure and business tourism are rapidly increasing in the country.
Hottest Spots in Brazil Commercial Real Estate
- Sao Paulo
It is the most significant region in the nation in terms of population and wealth. Consequently, Sao Paulo offers some of the best opportunities in commercial real estate properties. The local economy has been rising over the years due to a strong industrial growth and investments. The most famous commercial real estate markets in Sao Paulo are located in the Central and South Western parts of the city.
- Avenida Paulista
Commercial properties in this area highly priced since the area hosts large financial institutions and the Bovespa stock exchange. This area is served by a metro line which connects it to other parts of the central business district.
- Faria Lima
This part of Sao Paulo has several commercial properties such as luxurious hotels, large office buildings and nightclubs. The value of commercial properties is generally lower compared to Avenida Paulista. The area is connected to other regions through a subway. There are numerous buses that serve the residents of this area. Streets of interest to real estate investors include Rua Lelis Vieira, Rua Natingui and Rua Manduri, among others.
- Rio de Janeiro
It is the leading city in terms of foreign tourists visiting Brazil. Rio de Janeiro hosts the second biggest stock exchange in Brazil and some of the largest buildings in the nation. Investors in commercial real estate in the area have interest in the following regions:
- Presidente Vargas
It is the central business district of the city and is easily accessible from any part of Rio de Janeiro via buses, metro connections and train. Vargas has some of the city’s prominent historical attractions like the Candelaria Church.
- Avenida Rio Branco
This area is made up of both old and new commercial properties that host offices and retail outlets. Branco has a good transport system and is closely located to the Santos Dumont international airport. Most investors in commercial properties flock the Quitando, Debret and Acre streets.
- Belo Horizonte
Belo Horizonte is a major commercial hub in Brazil that hosts several multinationals and domestic firms. The city has a good transport system and a vibrant economy which makes it ideal for commercial real estate investments. The most prime regions for commercial properties are Coronel Murta, Pereira Lima, Odilon Braga, de Marco and Rua Professor Otavio Magalhaes. The region around Avenida Urugai also offers profitable investment opportunities in commercial real estate properties because of its excellent transport system and pleasant surroundings.
Commercial Real Estate in Mexico
Mexico borders Guatemala and the US to the South East and North respectively. The country is approximately one-fifth the size of USA. The country has abundant natural resources like petroleum, gold, zinc, gas, copper and silver. Mexico has an estimated population of 116 million people, 78% of whom live in urban areas. The country has a free market economy consisting of both modern and traditional industries. The recent regime has expanded the country’s railroads, seaports, airports, telecommunication facilities, electricity generation, agriculture and natural gas distribution. While the real estate market in the US is a bit sluggish, the Mexican commercial real estate is picking up really fast.
Why Mexico Commercial Real Estate?
The real estate market in Mexico is booming because of the following reasons:
- The Mexican government has improved immigration laws thereby enabling foreign investors to own commercial real estate properties in the country. Many investors are flocking the country to take advantage of the numerous opportunities in the country.
- The commercial real estate market in Mexico is recovering faster than the US real estate market. This is because Canadian investors are using their strong dollar and thriving oil market to invest in commercial properties in Mexico.
- Numerous people, especially in the US, are investing in the Mexico real estate as part of their retirement plans. This is because most retirees want to make profit out of their savings.
- Hottest Spots in Mexico Commercial Real Estate Market
Here are some of the hottest spots in Mexico real estate market:
Tijuana’s proximity to California has earned the area the number one hottest spot in commercial properties. Prices of commercial properties in Tijuana have soared due to increased demand of office space. Additionally, the value and prices of commercial properties have increased by approximately 15% over the last few months. There is also a high demand for residential properties since workers want to arrive at their offices in San Diego faster than those people living in far-flung parts of the city.
Bajio is located in Central Mexico and covers the states of Queretaro and Guanajuato. Major automotive firms such as Toyota, Nissan and Honda have heavily invested in the region. Investors in commercial real estate properties are capitalizing on these developments. Remarkably, investors are paying so much for commercial properties in the area just to be in prime positions.
- Cancun and Tulum
Cancun town is heavily developed and is a very busy tourist destination in Mexico. As such, it remains a hot spot for commercial real estate development although it is not in high demand like Tijuana. As Cancun continues to grow, investors are looking further down to Tulum, which is situated 75 miles to the south of Cancun. The price of land and commercial properties in Tulum has really gone up because the town has limited land as a large part of it is a protected reserve. In January, the area hosts very many Hollywood celebrities and fashion designers.
Investors from the US and other countries are increasingly investing in commercial real estate properties in foreign countries especially the Bahamas, Brazil and Mexico. These countries’ commercial real estate markets continue to grab the global investment limelight because of various reasons such as tax advantages, rising industry growth, larger middle class, improved investment relations and political stability among others.
In Brazil, the major hot spots for commercial real estate properties are Sao Paulo, Rio de Janeiro, Belo Horizonte, Fortaleza and Salvador. In Mexico, Tijuana, Tulum, Cancun and Bajio have really captured the interest of investors. Long Island, Exuma and Paradise Island are the hottest spots of the commercial real estate market in the Bahamas. These markets have very high potential and investors can reap high profits if they invest in commercial real estate properties.
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