Why do we invest in dynamic markets?

A dynamic market has a high level of activity, turnover of products and services, and constant entry and exit of participants. These markets tend to have high liquidity, innovation, sustained economic growth, diversification of opportunities, competition and global access.

Dynamic markets such as the United States, the United Kingdom and Brazil have economic stability, which reduces risk and gives us security in each investment. In this newsletter, we tell you why we chose these three countries to diversify our global real estate investments.

United States:

  • Stable real estate market: offers a wide range of investment opportunities, from residential to commercial.

  • Tax benefits and economic growth: The U.S. economy provides a solid foundation for growth and profitability in real estate. In addition, there are tax incentives such as accelerated depreciation and 1031 exchanges that favor investors.

  • Political stability and transparent regulatory framework: consistent and predictable system that facilitates foreign investment.

  • High profitability: both through property rental and long-term value appreciation.

  • GDP per capita: US$76,329.6 (2022).

  • Innovation and technology: The United States leads in the adoption of technologies in the real estate sector, such as PropTech, which improves the efficiency and profitability of investments.

United Kingdom:

  • Economic stability and consolidated real estate market: developed market with a wide range of assets in global cities.

  • Appreciation potential and strong property demand: the UK property market has shown steady appreciation, driven by domestic and foreign demand.

  • Stable and attractive currency for long-term investments: sterling is a strong currency, which reduces the risk of currency fluctuations that can affect investment returns.

  • Robust legal framework: the United Kingdom has a strong legal system that protects investors' rights.

  • GDP per capita: US$46,125.3 (2022).

  • Infrastructure and connectivity: excellent infrastructure and global connectivity, making the UK an attractive location for international business and trade.

Brazil:

  • Economic stability and growing market: the country maintains a positive economic growth rate and a growing demand for properties, especially in urban areas.

  • Market size and increased foreign investment: With a population of over 200 million, Brazil offers a vast market with potential for high return on investment. The government has implemented measures to attract foreign direct investment.

  • Return on investment potential: especially in the country's most recognized cities, where urban development and modernization are booming.

  • Diversity of opportunities: from residential and commercial properties to tourism and agricultural developments.

  • Ninth world economy: by GDP volume according to the OECD (2023).

  • GDP per capita: $8,917.7 (2022).

  • Natural resources and energy: Brazil is rich in natural resources and is a global leader in renewable energy production, which creates additional investment opportunities.

In this way, we diversify our global real estate investments in strong and secure regions. For more information, please visit our invested and sold projects on the website.

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Why the retail commercial real estate sector is back | Michael Chen, Madison International Realty