Brazil set to host World Cup Soccer Finals

But what does that mean for the country, its people and it's economy?

Home Field Advantage for the Best Team in the World

Football, as its known to the rest of the world, is practically a religion in Brazil. Five time winners of the famous World Cup and soon to be two time hosts, there could be no bigger honour for this country and its people. Looking back on past host nations of world wide sports events like the FIFA World Cup Finals or the Olympic Games there is an undeniable trend which proves growth and prosperity for all involved. These events undoubtedly require huge infrastructure investments, not only in football stadiums but other areas such as transportation links, communications networks and urban rejuvenation as governments try put on a show for the world. The most recent Olympic Games in Beijing demonstrate evidence of this. As well as infrastructure benefits the country benefits from job creation (at least one third being permanent) leading to wealth creation for individuals and local and nation wide businesses.

The Brazilian National Team have won the FIFA World Cup tournament a record five times, in 1958, 1962, 1970, 1994 and 2002. They are the only team to have participated in every World Cup competition and to have been amongst the favorites to win the trophy every time it has been staged.

The economic benefits can be seen in the example of Japan & South Korea . The Japanese government invested $7 billion in infrastructure for the 2002 World Cup Finals and they credit the event with ending a 12 year economic slump. South Korea reports that its service, construction and banking industry rose by 15% thanks to being event hosts. It was reported that in 1998 when France hosted the FIFA World Cup Finals real estate values in Paris rose 55% and some other less developed areas of the country rose beyond 100%.

Added to the real estate potential the other main boost a country receives is from tourism. For Germany 2006 3.2 million fans visited the country during the finals and a further 2 million came to soak up the atmosphere. FIFA reports that viewing figures for the 2006 Finals topped 36 billion for all the games combined. This is expected to top 40 billion for the Finals in Brazil.

Its undeniable that Brazil stands to benefit for hosting the 2014 World Cup. All eyes will be on South Africa next year as host nation and property investors are already benefiting there. We think that property investors, who invested in South African property, are now reaping the rewards and the same will happen in Brazil. As demand increases, construction times and costs do as well and builders pass this on to the consumers. People that act now stand to benefit the most as this sleeping giant begins to stir.