The biggest shopping centre in the Centre-West Region of Brazil opens in Goiânia

Passeio das Águas Shopping was officially opened yesterday by the executive team of Sonae Sierra the developer, the vice-prefect of Goiânia and the governor of the state of Goiás.

It comprises c. 78,000 sq m of ABL (leaseable area) on a plot of 280,000 sq m.

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Its wide curving avenues with comfortable wooden bench seating, green outlook / entrance, valet parking, children’s play area, and most notably the huge airy ‘praça de alimentação’ (eating area) with its 12m high ceiling and green vista combine to create a relaxing place to spend one’s leisure time, and money.

This is a hugely impressive development with a relaxed air which contrasts sharply with many other shopping centres where the praça de alimentação is canteen-like at the top of the building.

It will create / has created over 6,000 new jobs and represents the biggest stamp of confidence on Goiânia in many years.

Goiânia (Santa Genoveva) Airport work resumes on tripling capacity by 2020

Having got off to a false start amidst accusations of public money being filtered away from the intended destination, work resumed at Goiânia (Santa Genoveva) airport last Wednesday 18th September 2013 to conclude the first stage of the new passenger terminal.

The agreed date for completion is in March 2015 (18 months from now) and the work will cost R$246.2 million, around £69 million.

The governor of the state of Goiás, Marconi Perillo personally thanked Brazil’s president Dilma Rousseff for supporting the state’s petition to central government for funding to complete the works. The prefect of Goiânia (the city’s local government chief official) confirmed that the new airport will benefit the various sectors of the economy in the capital (Goiânia) and the entire state of Goiás.

The current capacity of the airport is 3.5 million passengers p.a.. This will increase in 2015 by 5.1 million to 8.6 million a huge increase of nearly 150%. The second stage (2020) will result in capacity increasing further to 10.6 million. The first stage of the new terminal will provide 34,100 sq m of space, dwarfing the present terminal which is 7,571 sq m.

The scene is being set for Goiânia to become increasingly easily connected with other parts of Brazil and, as a result, economic growth which may bring with it increased demand for real estate. There have been rumours over the years of international flights landing in Goiânia and time will tell.

To put it in context, Luton Airport in 2012 had a capacity of 10 million passengers p.a., although according to the FT, the new Spanish owners Aena plan to increase this to 18 million p.a..

Summary statistics (source: Infrero)

How Goiania airport will change over the next few years

How Goiania airport will change over the next few years

July 2013 protests in Brazil may signal a positive future for the economy and real estate

The protests are believed to have started in Goiânia over a bus fare increase of over 10%, from R$2.70 to R$3.00.  This was the straw that broke the camel’s back:  people have, apparently, been complaining in Brazil for a long time over the state of education, transport, crime, healthcare services and corruption in politics but generally within the four walls of their houses.

When a great deal of people have to travel into Goiânia to work, frequently needing to take two buses to get there, public transport can amount to over R$10 per day.  On the basis of say 22 working days in the month, this cost can equate to a third of the income of someone earning the minimum wage which this year increased by about 9% to R$678, about £205 per month.

When the court ordered the fare increased be reversed, it was by then too late to stop the public from voicing their anger – it had broken free, and spread throughout Brazil.  While there has been some violence which has made the headlines, the vast majority of the protests have been peaceful.  There has been very little violence in Goiânia linked to the protests.

People in Brazil resent the amount of money being spent by politicians in the context of the quality of healthcare education and so on, e.g. the governor of Rio de Janeiro was recently in the news for frequently taking his family, and pets, in a state helicopter to his beach house.  The amount of money he is spending on helicopters has doubled since 2007.

There is speculation that the new football stadia will be white elephants after the the World Cup, and the copa das confederações which Brazil just won:  the new stadium in the capital Brasilia was programmed to cost R$740 millions and ended up costing 40% more.  Brasilia has a relatively small football team which according to Wikipedia until recently played in a stadium with a capacity of 5,000; the new stadium has a capacity of 71,000.

The wave of protests may result in better transport services, better healthcare, better education which are all necessary for sustainable economic growth.  More prudent public expenditure should free up money for private investment which may in turn drive economic growth.  More prudent public spending can be combined with better public services.

The protests may be an early signal of forthcoming economic improvement and a reason therefore to invest in Brazil real estate, not to be scared off by the short term noise.