Brazil’s booming economy has had no problem attracting multinational companies over the past decade, but not nearly as many commercial real estate developers. Long deterred by high interest rates, foreign investors are beginning to recognize Brazil’s shortage of leasable office space–especially in Campinas.

Its proximity to the financial capital, Sao Paulo, high quality of life, highly educated workforce, diversified economy, and of course, low cost of doing business, have made Campinas a top investment destination. Aptly named the “Silicon Valley of Brazil” due to its high concentration of universities, research centers and high-tech companies, such as Bosch, Compaq, Dell, General Electric, IBM, Lucent, Samsung, and Texas Instruments, Campinas is also home to automobile giants, General Motors, Honda, Mercedes-Benz and Toyota, and pharmaceutical giants, Merck and Novartis. In all, well over 50 Fortune 500 companies have major regional operations here, contributing to a relatively low unemployment rate of roughly 6% and one of the highest average income rates in the nation.

Campinas’ job growth has generated a lot of buzz in recent years. In 2009, Bloomberg/Businessweek named it one of its “Cities that Could Steal Your Job” and KPMG listed it as one of its top destinations for IT business processing outsourcing. Last year, Forbes called Campinas one of “The Next Decade’s Fastest Growing Cities” and Wired magazine named it one of the fastest growing high tech centers of Latin America.

Several major infrastructure projects promise to bring thousands more jobs to the region. For example, the $ 18.8 billion public-private Rio-Sao Paulo-Campinas high-speed railway will soon connect Campinas with both Sao Paolo and Rio by 2016, perhaps in time for the Olympic Games in Rio. In addition, a $ 1.5 billion airport expansion project due for completion in 2015 will add a runway and start the first phase of a new passenger terminal.

Notwithstanding the recent job growth, Campinas’ commercial property market remains largely underdeveloped. Office vacancy rates are less than 6% on average compared to roughly 14% on average in U.S. cities, signaling a potential dearth in Campinas–particularly when it comes to Class A office space.

Brazil’s central bank cut the interest rate last month by 0.5% to 11.5%, and investors expect another 1.25% in cuts by April 2012. This could be enough to spur a new wave of much needed investment in one of Brazil’s most favored markets.

Las Vegas was perhaps hardest hit by the global economic recession and US housing market collapse. As the nation’s fastest growing metropolis and a top tourist destination, Vegas’ housing and tourism industries suffered major blows.

Although tourism declined 4.4% and 3% in 2008 and 2009 respectively, Vegas’ luck now seems to be changing–thanks to a rebounding American economy and a surge in tourists from mainland China who have long targeted Vegas as a “must see” destination. The Chinese are not just the fastest growing segment of tourists, they’re also the biggest spenders. In fact, the U.S. Department of Commerce estimates that Chinese visitors spend, on average, $6,000 per trip–far more than tourists from any other country. In hopes of reviving Vegas’ tourism industry, the Las Vegas Convention & Visitors Authority (LVCVA) has allocated significant resources for marketing campaigns in China’s largest cities.

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The emirate’s sovereign wealth fund, the Abu Dhabi Investment Authority, is conservatively estimated to hold between $350 B and $700 B in assets including huge stakes in Barclays, Citigroup, and real estate in top global investment destinations.

Abu Dhabi holds nearly 10% of all the world’s known oil reserves (5th largest), and produces 90% of all oil within the UAE. With the world’s sixth largest natural gas reserves, the emirate is also wealthy in non-oil assets.

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Home sales fell 16.7% last month, its largest decline in about 4 decades as the effects of the first-time home buyer tax credit faded. National Association of Realtors data suggest that first-time home buyers made up the majority of home sales in the early part of 2009, compared with just 43% in December.

Regional sales declines were greatest in the Midwest at 26% and least in the South at 16%. Both unemployment and foreclosure rates help to explain the differences in regional home sales figures.

The good news is that December 2009 sales and prices were up 15% and 1.5% respectively over December 2008. However, inventory was also down during the same period, lessening the legitimacy of year over year sales and price increase.

Washington, DC was yet again named America’s top real estate destination for international investment, beating out New York, San Francisco, and Boston respectively. A survey conducted amongst members of the Association of Foreign Investors in Real Estate (AFIRE) found that for a second year in a row, multi-family units were the preferred form of real estate investment.

Although Washington was the world’s top real estate investment destination last year, London emerged to capture the top spot by a huge margin. This may be attributable to London’s investments in preparation for the 2012 Summer Olympic Games, the weakened Pound Sterling, and a rebounding property market. New York remained the world’s third most favored destination, followed by Paris, Tokyo, Sydney, San Francisco, and Hong Kong.

10. Denver

By the end of 2009, the mile-high city’s property market seemed to be nearing a bottom as both vacancies reached 4-year lows. The Central Business District and Lower Downtown office vacancies faired a lot better than most major markets in the third quarter at just 13% and 15% respectively; however, by the fourth quarter, vacancies fell across the entire region.

9. Miami

Although Miami was one of America’s hardest hit real estate markets, this year we’ve seen signs of recovery. In 2009, over one-third of new condo units were vacant, but real estate professionals are reporting that things are improving. Miami still remains a popular spot for international real estate investors for the city’s warm climate and significant portion of celebrities.

8. Chicago

With the second largest office market and third largest real estate market in the U.S., Chicago remains a favorite destination among international investors. As such, Chicago’s office vacancy rate was one of the lowest in the U.S. at only 12% by the end of 2009.

7. Seattle

Seattle’s office vacancies are at 20-year lows, which translates to over 20% in the downtown/financial district. Local brokers and developers have a negative outlook moving forward, however, international investors think highly of the Emerald City, with its highly educated workforce, presence of Fortune 500 companies, and large international port.

6. Houston

Houston’s real estate market was close to the national average with overall vacancy rates of about 16%. The city has held up well but in some suburban areas, vacancy rates were much higher. When it comes to local residential real estate, a recent survey showed that most investors have a positive outlook moving forward.

5. Los Angeles

Down from the #4 spot last year, the L.A. area was amongst the country’s hardest hit property markets. Some of the city’s
most notable landmarks, like the U.S. Bank Tower, is nearly 35% vacant. However, in downtown, rates remained at 14% going into 2010, while the Burbank-Glendale-Pasadena submarket saw a surge to 17%.

4. Boston

Boston was this year’s biggest gainer, having moved up from seventh place last year as it was seen as one of the most stable markets in terms of both prices and vacancy rates. Boston remains a favorite US destination due in part to its proximity to Europe and zoning regulations and tight property market.

3. San Francisco
San Francisco was one of the country’s hardest hit markets, which once saw over 30% vacancies in the financial district office market last year. But international investors still favor San Francisco as it’s a major financial hub and one of the world’s top international tourist destinations.

2. New York

The country’s largest office and housing market saw one of the lowest office vacancy rates amongst major cities, but also one of the steepest declines in prices. Recent trends suggesting a decline in sublease space indicates that office vacancy rates will stabilize in 2010.

1. Washington, DC
Office vacancies and prices were amongst the most stable in the nation as demand for proximity to the federal government, lobbyists, and law firms makes central Washington an attractive market. As suburban markets in Northern Virginia show signs of recovery, DC’s office market is expected to follow suit in 2010. International investors love DC’s European feel and future growth prospects.

Photos courtesy of: Ken Schroeppel (Denver); Wikipedia user, Aude (Chicago);

After a year of the largest economic decline in nearly 7 decades, the US economy has finally returns to growth. The US economy showed signs of recovery as the US Department of Commerce recorded an economic growth rate of 3.5% during the third quarter. Consumer spending was up nearly 3.5% as well, the largest quarterly rise in about 2 years.

US New Home Sales Decline

After 5 months of rising new home sales in the US, figures for September were down 3.6%. Many economists attribute the drop to the end of the first-time homebuyer tax credit. The decline was most evident in the South and West, while new home sales were up 35% in the Midwest.

FDI to Vietnam Plunges

Foreign direct investment into Vietnam is down 12% so far this year and new commitments for foreign investment projects is down over 70%. FDI had previously been key to helping Vietnam balance its trade deficit.

Australia, Cook Islands Sign Tax Info Exchange Agreement

The Cook Islands and Australian governments have signed a tax information exchange agreement, further closing the door to any possibility of Cook Islands returning to its former tax haven status. Since nearly 50,000 Cook Islands citizens live in Australia and New Zealand, this treaty is seen as favorable to Cook Islands tax authorities as well.

The world’s largest developing economies posted significantly higher FDI figures, signaling that the worst of the global foreign investment slump is behind us. Brazil’s inward FDI rose to $ 2.5 B in September, up about 25% over August totals. Russia recorded a significantly lower net FDI outflow, indicating the return of foreign investors into the Russian economy. FDI to China rose nearly 20% in September, while FDI to India inAugust was up 40%.

Chinese Economic Growth Accelerates

China released news that its growth rate for the first 9 months of 2009 averaged slightly above 7%, but that things picked up to 8.9% in the third quarter. A significant rise from the low rate of 6.1% in the first quarter, China’s economic stimulus is being credited for creating a quick rebound.

US Real Estate Market Rebounding

We finally have news to suggest that the US housing market has begun to rebound. Although pending US home sales rose for the 7th consecutive month in August, existing home sales were still slumping. However, a report released today by the National Association of Realtors showed that existing home sales in the US rose as much as 9.2% in September, the first such rise this year.

Tax & Law

Singapore recently reported a surge in offshore banking activity from Russians, but in the face of mounting pressure to improve transparency, it has changed its attractive tax structure. This week, Singapore passed
a tax disclosure law aimed at forcing banks and trusts to provide information if a treaty nation requests specific information for tax purposes.

Hong Kong, Shanghai, and Beijing are undoubtedly popular and powerful, but no longer China’s fastest growing cities. There are several lesser-known, emerging cities that are developing at lightning speeds–but none of them quite like Chongqing. Unless you have personal or business ties in China, chances are you’ve probably not heard of Chongqing.

Located on the Yangtze, some 900 miles inland, it’s the heart and economic engine of southwest China. Its metropolitan region (municipality) has the population of California crammed into an area the size of South Carolina. Despite its massive size and growth, it still has a long way to go, making it one of China’s best investment destinations.

Statistics show that Chongqing is not only the fastest growing urban area in China, but perhaps in all the world. An estimated half million people move to Chongqing’s urban core annually. So you can imagine that the local real estate market is expanding fast, giving investors great opportunities. Chongqing’s real estate sales area (total space within the market) and the value of its real estate market grew by roughly 38% and 64% respectively since 2008. Unlike most cities, Chongqing has already recovered from the real estate market slump as both home prices and second-hand home prices grew by 0.2% and 3.1% respectively this year.

With an expanding and robust economy, there’s no wonder why the city’s population is booming. From January to June 2009, local economic growth stood at an enviable 12.6%, slightly less than last year’s 14% increase.

As China’s automobile sales continue to climb at over 20% annually, Chongqing will certainly benefit. It’s one of four major automobile manufacturers and one of the largest industrial metals producers in the country. In fact Chongqing is becoming both the Detroit and Pittsburgh of China. For instance, Ford Motor Company’s largest Chinese plant is located in Chongqing and over one-third of all China’s motorcycles are produced here as well. Thanks to a growing demand for Chinese exports, Chongqing Iron & Steel Company is set to become the largest shipbuilding steel producer in China by 2010.

This mega city is also becoming the new Silicon Valley of the East. Recently, Hewlett-Packard (HP) and Foxconn Technology Group announced their joint $ 3 B investment in a laptop manufacturing hub in the heart of Chongqing. The news follows closely behind the local government’s announcement that the city will host China’s first 3G Technology Park, which includes major IBM and Infineon manufacturing operations.

Manufacturing is only half of what is presently driving Chongqing’s growth. The city is a growing center of both research and finance. Chonqing is known for its research in traditional medicine, contemporary pharmaceuticals, and agriculture. Moreover, the government plans to make Chongqing a major financial hub by 2015 with the building of the Chongqing Financial Center in the Jiangbeizui business district.

To keep up with Chongqing’s growth of commerce, an astonishing 1.5 million square feet of office space is added each year. This includes more commercial skyscrapers in the pipeline than anywhere else in China. The following are presently under construction:

- Jialing Fanying, 468 m, 105 floors (pictured at right)

- ASE Center R6 at 463 m, 88 floors

- Sun Valley Tianhe Tower 450 m, 95 floors

- Chongqing International Financial Center, 431 m, 102 floors

- Financial Street, 430 m, 81 floors

- Chongqing Global Financial Building, 331 m 81 floors

- Lanko International Mansion, 330 m, 72 floors

- ASE Center R5, 320 m, 61 floors

- Yingli Tower, 318 m, 72 floors (pictured at right)

- Poly International Plaza, 300 m, 60 floors

Huge investment in transportation and general infrastructure is underway with the building of several dozen subway lines as well as thousands of miles of roads and highways, including the completion of over 900 miles of highways by the end of 2009 alone. There’s also a new airport terminal in the works, a new railway container terminal, an inland free trade zone–well, the list goes on from here.

Now you get the idea that Chongqing still has a long way to go, and its astounding rate of growth provides ample investor opportunities.

There are myriad reasons behind this success. For one the area is home to the 8th largest concentration of Fortune 500 companies nationwide, partly behind Pittsburgh’s low unemployment rate and its remarkable personal income growth rate. Steel and coal giants, US Steel and CONSOL are still big players in town but the University of Pittsburgh Medical Center is now the area’s largest employer. Another top employer in town is PNC Bank, which grew to become the country’s 5th largest financial institution through acquisitions and its avoidance of the sub-prime mess. These large institutions are all packed into the nation’s 6th densest central business district–a great place to locate your business as well.

Don’t let its small population of roughly 315,000 people fool you. Pittsburgh definitely has all of the normal big city amenities: from major league sports teams to world class museums and theaters; from first-rate shopping to skyscrapers–this is definitely a major cultural and economic hub. Thanks to all this town has to offer, smart investors know that Pittsburgh is both undervalued and poised for economic growth.

It seems like just about everyone’s talking about the Steel City:

- Forbes named Pittsburgh its 6th best city for job growth in 2009.

- The Economist declared Pittsburgh the 29th most livable city in the world, beating out every other city in the US.

- Mercer ranks Pittsburgh as having amongst the lowest costs of living nationwide.

- The New York Times can’t seem to get enough of the Steel City, calling it both “cool” and “hip.”

A renaissance is currently underway in the heart of town. Old factories and historic office buildings have recently been converted into condos, bringing thousands of new residents downtown. Several miles of the riverfront are being redeveloped and major projects are sprouting up around town:

- North Shore Center. Early this year the North Shore redevelopment brought hotels, office buildings, and retail to the area adjacent to the stadiums and new casino.

- Three PNC Plaza. Two weeks ago, Three PNC Plaza, the first skyscraper to be built since 1987 opened. A LEED certified building, the project includes a Fairmont hotel, condos, retail, and office space.

- August Wilson Center for African American Culture. Opened earlier this year, the center brought a new theater, museum, and classrooms to Pittsburgh’s cultural district.

- Casino Gaming. The Rivers Casino opens this week on the city’s North Shore, bringing 1000 jobs and the potential for more tourists.

- New Arena. The Consol Energy Center, is currently under construction to provide a new home for the NHL champions, the Pittsburgh Penguins. The arena will open in time for the 2010-11 season.

- Point Park University Expansion. The university recently purchased buildings along Wood Street in hopes of creating an attractive and livable university neighborhood in the heart of town. It plans to build a new academic village, a theater, residential halls, student centers and a park.

- Light Rail/Subway North Extension. The ambitions plan calls for an underground station at the convention center and a tunnel connecting to the North Shore.

For the aforementioned reasons and many more, Pittsburgh is one of America’s best up-and-coming investment destinations. Below, we’ve listed our top 3 ways to invest in the Steel City:

1. Downtown Housing. Since only 5,000 people actually live downtown and due to a growing sentiment amongst suburbanites to live closer to their downtown jobs, an investment in downtown housing could be a good idea. There is growth in this housing market through the conversion of older buildings or developing on parking lots; however, the city government is providing incentives to developers who convert vacant upper levels of office buildings into residential space. Downtown’s small size and high density of office buildings means that there is potential for property appreciation.

2. Downtown Retail. Locate a restaurant or other retail establishment in the re-emerging Market Square district or the North Shore. These areas are currently undergoing revitalization; Market Square Place is within walking distance from several Fortune 500 companies and the North Shore center gives you access to sports fans and casino goers.

3. Single-Family Homes. Nearly 50% of Pittsburgh homes have sold for less than $ 100,000 this year, but prices could go higher once the national real estate market gets better. You might be able to find a better deal than you think, especially if you’re willing to buy a fixer-upper. Check the
city’s inventory as well as other sources for foreclosed and distressed properties.

10. The Gambia +3.8%
Down considerably from last year’s growth rate of more than 6%, Gambia was affected by a decline in commodities prices. Agriculture makes up the vast majority of the West African nation’s economy, but tourism is now its fastest growing sector. Most tourists are European, but future growth in the industry will depend on expanding to include American tourists as well.

9. Indonesia +4.2%

Although its economic growth has slowed to a 6-year low, continued growth in government and consumer spending has kept the economy afloat. Most government and private sector development has gone primarily to the telecommunications and transportation industries which saw double-digit growth rates.

8. Tanzania +5.3%

Tanzania continues to grow, albeit less than last year, as it is less dependent on agriculture. Significant growth has been seen in the tourism, services, and mining sectors. The mining industry has grown so much that Tanzania is now Africa’s third biggest gold producer, with metals exports growing at an average annual rate of 4%.

7. India +5.8%

After growing by nearly 9% in 2008 and close to 10% in 2007, things have definitely slowed down. A sharp decline in FDI of over 40% is certainly to blame, as the US overtook India as the second largest recipient of FDI this year. Economists are optimistic that economic growth will pick up in 2010, but don’t expect a return to its normal 9% rate until 2011.

6. Djibouti +6.5%

A key port of entry to East Africa and the Red Sea, Djibouti has been a key recipient of FDI in the region. Most of that investment has gone to the service sector, which makes up over three quarters of the economy. Although, Djibouti’s banks have benefited most, future growth will be in infrastructure–specifically with the development of Al-Nour city and intercontinental bridge projects.

5. Republic of Congo (Brazzaville) 6.5%

The growth of the oil sector over the past decade has contributed to its robust average annual growth rate of over 7% from 2005 to 2008. Home to a portion of the world’s second largest rain forest, there is potential for future growth in eco-tourism as well as infrastructure development in the capital, in which 1/3 of the country resides.

4. Ethiopia 6.5%

The government’s program to pave and expand the country’s roadways is mainly responsible for continuing economic growth this year. As a result, travel times have been cut in half, vastly improving the flow of commerce.
Despite a slower demand for the country’s chief export, coffee, lower oil prices have pretty much balanced things out. Future growth is seen in the growth of luxury exports such as leather.

3. China +7%

After slowing to a rate of 6.1% during the first quarter, China recently returned to its normal average annual rate of nearly 8%–in line with government forecasts. The “easy credit” stimulus program pushed the growth of both consumer spending and exports back to double digits. Nonetheless, the government cautions that recent growth depends largely on the stimulus due to a worldwide decline in demand for Chinese goods.

2. Malawi +7%

Surging corn, tobacco, and telecommunications industries have propelled Malawi to become Africa’s fastest growing economy. Although things have slowed down this year, the country is still growing briskly. Further growth can be seen in other agricultural products like tea and sugar as well as in the eco-tourism sector thanks to Lake Malawi and wildlife.

1. Qatar +9%
Not nearly as popular as other Persian Gulf investment destinations, Qatar offers the world’s fastest growing economy and one of its wealthiest consumer markets. With 15 Billion in oil reserves, the petroleum industry has long been the cornerstone of its economy. As a result, the national GDP per capita is one of the world’s highest at over $65,000.

In order to maintain economic growth, Qatar has realized the need to diversify. With 5% of the world’s natural gas resources, the gas industry has recently become the largest contributor to the national GDP. But, government plans to boost tourism to 1.4 million annual visitors will help revive its retail and hospitality industries.

* Average economic growth rates calculated for the first half of 2009 using respective national government and IMF data resources. Images courtesy of respective government tourism agencies.