Come to think of Brazil, and you’ll immediately get transported to the football capital of the world! The land of Ronaldos, Ronaldinhos, Peles, and Romarios is the next projected global economic powerhouse. Occupying almost half of the South American continent, Brazil is the fifth largest country in the world. Considering its vast size, the Brazilian population of around 190 million is miniscule, to say the least. This is because sea-loving Brazilians are mostly concentrated around the coasts. It is estimated that around two-third of the nation’s population is situated along the coastline. This leaves a vast chunk of the country’s mainland open for development projects, and a virtual goldmine for the global property investors.

What Makes Brazil a Hot Investment Destination?

Brazil has many attractions that allure the people from all over the world to this Samba land. The country is a major tourist hub of South America. It’s not just the soccer-crazy Brazilians that invite attention, but also the entire Brazilian lifestyle that has lent a unique identity to the country.

To start with, the country plays host to the world’s biggest rainforest – The Amazon. This is reason enough for the nature loving tourists to flock and hook up to Brazil for days, and witness the wildlife-rich wetlands of the Pantanal, the canyons and caves of the Chapada Diamentina, and the Mata Atlantica (Atlantic forest), which runs for much of the length of Brazil’s coastline.

Brazilian seashore adds to the charm of the country with sun-kissed beaches dotting over 7000 kilometres of coastline. The legendary Copacabana and Ipanema beaches are just some of the magnificent water-features of Brazil. The aquatic sports are also one of the major highlights of the Brazilian beaches.

If you think you’ve heard enough of Brazil, we are not done yet! The Annual Carnival at Rio de Janeiro is synonymous with the Brazilian way of living – dancing to the tunes of samba and merrying about all night! This not-to-be-missed annual event is attended by millions of revellers from around the world and attracts global media coverage.

Another major reason, besides tourism, behind the growth of the property market in Brazil is the country’s booming industry. Brazil is one of the few countries that have mastered the art of ethanol-blended petroleum products. This technology is of massive help in curbing rising pollution levels due to the burning of fossil fuels the world over.

The country is largely seen as one of the fastest developing economies of the world along with China and India, and if the trend continues, Brazil will be a jackpot destination for every real estate investor. A largely peaceful country, Brazil attracts Europeans for its low cost of living, which is just 20% of that in the UK/Europe.

The proactive government developmental policies, along with the favourable currency exchange rates fuel the robust property sector all across the country. Brazil is well-connected with major cities of the world through regular flights in and out of the country. The lively Brazilian people have a rich tradition of living life to the hilt, is one factor that clinches the deal for Brazil as a hot real estate destination.

Hottest Investment Locations in Brazil

Currently, Brazil enjoys one of the fastest growing property markets in the world. Therefore, you can be rest assured that money spent on property in Brazil is a wise investment translating into greater appreciation for the capital in a short period of time. And before you jump on the Brazilian bandwagon, here’s another happy piece of information you’ll love to hear. Millions of foreign nationals own property and business in Brazil benefiting from the fact that property ownership is guaranteed by the Constitution for Brazilians and foreigners alike. And land ownership in Brazil is in perpetuity, which includes full mineral and water rights.

Any kind of coastal property in Brazil is worth a goldmine. Since most of the population and tourists’ activities are centred on the coastal areas of Brazil, cities like Rio de Janeiro and Sao Paulo are always on top of the investment chart. For a little over £50K, you can enjoy beachfront apartments, duplexes and villas in Natal, or residential club villas in Fortaleza. Of course, several low-priced properties are also available in every segment – off-plan, built-up, or land.

If you are looking to capitalize on the vast agricultural land in Brazil, the places like Western Bahia State should be your choice of destination. Brazil is expected to be self-sufficient in terms of food available to its citizens, within a few years. Thanks to the mineral-rich fertile soil of the country, the cities, like Louis Eduardo Manghales, have emerged as agri-hubs in Brazil. Obviously, the developed agricultural land will cost you a little more than the uncleared land in areas, like SE Tocantins, which is believed to contain a hugely fertile land, but development here is still some years away.

Some other places ideally suited for investment in residential and commercial property include the towns of Rio do Conseicao, Dianopolis, and Rio Grande de Norte.

Brazil has investor-friendly laws, byelaws, and regulations. However, you may require the services of an attorney or a estate agent for successfully negotiating and transferring the property. There may be certain formalities to be satisfied before you can legally own a property in the country, but these are not very technical formalities that require much effort on your part. Read our buyers guide on Brazil for more details.

A recent survey commissioned by the Brazilian Ministry of Tourism revealed that British buyers made up seven per cent of the overseas spend on residential property, parting with £28 million in 2007.

The main focus of property investment in Brazil is in the large cities of Sao Paulo and Rio de Janeiro, and the nine states of the north-eastern  region.

Nara Vidal of Brazilian Gateway says: “My personal choice has to be Sao Paulo because of what it represents in terms of Brazilian economy and development. Sao Paulo city alone is responsible for more than 12 per cent of Brazil’s GDP and its property market is by far the strongest in Brazil. It is the most populated city in South America and has a huge deficit of accommodation, specially for the mid and lower income classes that now have more buying power due to credit allowance. A strong market such as Sao Paulo, offers not only the highest rental yield and capital appreciation but also a straightforward exit strategy for investors interested in investing elsewhere afterwards.”

The north-eastern states are the subject of a concerted push to attract overseas property investment. The states have teamed up to form ADIT Nordeste, a government-funded association aimed at attracting property investment from overseas tourism and real estate investors. Its third annual Nordeste Invest conference, held earlier this year in the coastal city of Recife, is estimated to have generated £727 million of business.

One area about to feel the benefit of these efforts is Alagoas, which has previously been relatively untouched, but is now being tipped as the country’s first six-star destination. International brands such as Radisson and Invest Tur (Six Senses and Txai brands) are investing here, and Felipe Cavalcante, president of ADIT Nordeste, says: “The local government is focusing only on high-end real estate projects so the state receives the best developments in the country. It is wonderful to see that the natural beauty of Alagoas will be enhanced by all these top quality real estate projects.”
Paul Bartlett of EM Concepts says: “Many different parts of Brazil are good for property investment. However buyers need to be aware of market saturation in some second-home and popular destinations such as Natal. Look to Fortalaza, where you will find competitively priced ‘A-class’ condos, and Itacare if you are looking for beach property.”

As one of the BRIC countries, Brazil’s booming economy is resulting in significant capital gains.
Nara Vidal says: “With the unprecedented prosperity of our economy, some areas in Sao Paulo have seen capital appreciation of around 20 per cent in 12 months.
We forecast an average of nine to 10 per cent rental yield in some of the developing areas, and  capital appreciation that will easily reach 25 to 30 per cent in the next year.”
Paul Bartlett adds: “Capital appreciation has been around 20 per cent over the last couple of years and we would expect a rate of around 10 to 15 per cent per annum in the coming years provided inflation is not too disruptive to economic growth and loan rates.”

Nara Vidal recommends serviced apartments as the best property investment in Sao Paulo. “Contrary to the general belief that serviced flats are for tourists or executives, a very big number of “Paulistas” live in serviced flats for convenience and flexibility. The rental yield in many cases is a massive 12 per cent net, including management fee. It is definitely the best investment right now.
Paul Bartlett agrees saying but adds: “For maximum capital growth it would make sense to look at beach homes in the growing coastal cities such as Maceio, where prices are still low but should rise fast.”

Although the fundamentals for Brazilian investment are there, Nara Vidal adds a note of caution: “An investor needs to have a clear picture when investing in property in Brazil. Brazil is no tropical paradise and crime rates are still high, although increasingly low. Human development remains a challenge and corruption is still a problem. On top of that, bureaucracy is a huge obstacle when investing in Brazil as purchase process can take longer than expected. It is crucial to choose a professional agent in the UK. Sadly mortgages are in their infancy in Brazil and we do not advise foreigners to take a Brazilian mortgage as interest rates are still high – around 11 per cent.”

With the 2010 World Cup soccer being held in South Africa in 2010 property investors, speculators and property owners are keen to see what will be happening to property prices in the run up to the cup.

All over SA, we are seeing the upgrading of various infrastructure.

So far the tournament is the single biggest catalyst that is triggering major infrastructure investments in South Africa.

Major projects are underway with the multi million rand Gautrain project, the Green Point Stadium, the Coega aluminium smelter and the billions allocated to the construction of the new King Shaka International Airport at La Mercy in KwaZulu-Natal.

Well how will this benefit property prices and when?

The first major benefit to the property industry will be demand for accomodation for corporate lettings linked to 2010 infrastructure projects.

The global slow down has recently put pressure on property prices in South Africa which had seen phenomal growth up to mid 2007.Analysts are predicting an upswing towards the end of 2008 begining 2009.

Property agent, Ashley Den Breeijen of Re/max advises clients that are thinking of selling to hold onto there properties for at least another year.

The market is also at present ripe for the picking and investors on the lookout can snap up great deals in this current buyers market.

If you have the money buy now, according to Ashley who has years of experince in the property arena.

Post World cup will see properties still benefiting as South Africa hopefully reaps the benefits of this massive marketing coup for our country.

Ashley Den Breeijen heads up a real estate team called the Husband and Wife Team in the Blaauwberg,

Cape Town areas.

You can visit his website at husbandandwifeteam

London 12th May 2007

Overseas property specialists Emerging Places have just released for sale their new property development Sol do Atlantico in Natal Brazil. Located in an area between Natal and Pipa the Brazilian people regard this area as one of the most beautiful coastlines in the country. Property prices in this area are rising fast and property investors worldwide are investing in Sol do Atlantico in their numbers.

Emerging Places hold this region and development in high regard. The apartments are located just 35 minutes from the airport in Natal, 20 minutes from the popular resort of Ponta Negra and only 2 minutes walk from an outstanding beach.

Standing looking over the bay is a very Brazilian scene with dolphins swimming, local children playing football on the beach and the sounds of tropical birds singing in the palm trees.

This part of Brazil is widely regarded as having exceptional investment potential, returns of 20% last year have been seen. Construction is underway in Natal of a new airport set to be one of the largest in the world in order to cope with the huge increase in tourism that has been seen in recent years. The region is setting itself up to be a year round tourist destination, with sunshine throughout the year and a constant warm temperature, property investors are realising the investment potential here is significant.

Flights from the UK to Natal now start from £190 and the area has become very popular with holiday makers and property investors throughout Europe.

Patrick Martin Director at Emerging Places commented “Our thorough research into the Brazilian property market and the Natal area gave us a real insight into the location’s potential. With the Sol do Atlantico development we know we have the perfect project to realise this potential for our investors.”

Brazil has become politically stable and economically prosperous. Economists are predicting the country will become one of the future economic leaders along with China and India. The Brazilian government has been successful at encouraging foreign investment, helping to fuel the economy.

It is a general view that Brazil is at the beginning of a property boom and is emerging into a significant property investment market.

The Sol do Atlantico project is being built over 4.2 hectares but the 201 apartments take up only 18.6% of the ground space leaving large open spaces for a tropical garden, large swimming pool, a restaurant and other facilities. The apartments are currently under construction and are due to be finished in the summer of 2008.

All apartments have 3 bedrooms and prices start from 78,300 Euros. For more information visit http://www.emergingplaces.com

With some of the most exciting opportunities in overseas property situated in far-flung locations around the world, many investors who are making good returns on their overseas property portfolios never get to see the properties in question. But with the global travel and tourism markets constantly evolving, some destinations which were previously thought of purely in terms of their investment potential are now coming to be considered as viable holiday destinations.

Two years ago, real estate in Brazil was still being treated with some caution by property investors. While the economy was beginning to grow, and the idea of the BRIC (Brazil, Russia, India & China) countries was coming to the fore, it was still difficult to consider property investments away from the established business and cultural centres. When developments began to appear in and around Recife, there was some suspicion of the viability of the investment, and where the rental income would come from.

With the recent launch of a number of lifestyle resorts in some of the more untouched parts of the country, there is a whole new market opening up – residential tourism. With the development of resort-based properties, ambitious plans for golf, equestrian and spa facilities, and a healthy dose of celebrity endorsement, buyers are beginning to view Brazil’s north east coast as an extension to the Caribbean, or according to one agent, the new Algarve.

The area around Natal is Brazil’s closest point to Europe, boasts a climate that with an average temperature of over 24 degrees celsius in winter, and according to the Institute for Applied Economics Research, is the safest city in Brazil. There are now direct flights from London to the city, and with the new resorts managing to secure large tracts of unspoiled beach and coastline, the prospects not only for a relaxing undisturbed beach holiday, but also space for watersports and other activities are superb.

Other factors from more established overseas real estate markets are also helping to attract buyers. Grand Natal Golf, a huge development of over 30,000 properties stretched along 7km of beach, is being marketed in the UK by Resort Group International, and has the kudos of being able to use Brazilian football legend Ronaldo and actor Antonio Banderas as ambassadors for the project. Both celebrities have already secured their properties on the development, with Ronaldo also opening a football academy on the site.

On top of celebrity endorsements, the Grand Natal Golf project also includes plans for a plastic surgery clinic, and with direct flights starting at just £190 return, the cost of cosmetic surgery tourism is likely to rival southern European destinations.

The major attraction with buying property in Brazil however, is that anyone buying property there will open up the potential rental market not only to Brits and Europeans, but also to the US market, who increasingly see Brazil as an alternative to the beaches and overdevelopment of Mexican and Caribbean resorts. Resort Group International’s Graeme Grant says “Now the tourism industry is discovering the fabulous 418 km coast around Natal and property in this area is moving beyond the investment phase into second home purchases. The region is popular not only with Europeans but North Americans and Brazilians as well. Natal is the new Algarve.”

According to NASA surveys, Natal and Antarctica enjoy the cleanest atmosphere in the world, so developers are also keen to make sure their green credentials are recognised as the region develops. As well as protecting the local environment, this should also make sure that there is no overdevelopment in the future, keeping resale values high.

The Brazilian government is also getting involved in promoting the growth of tourism, and protecting the environment. The Ministry of Tourism has only been in existence since 2003, but since then has poured hundreds of millions of dollars into promoting and protecting the country. Adam Cornwell of Gem Estates, who are promoting the Porto dos Corais development just outside Natal says “The target is to grow tourist arrivals annually from the current base of 5.5 million to 9 million over the next couple of years. Rio Grande do Norte is seeing the most tangible results with tourist arrivals for the State increasing by 134% between 2002 and 2005.”

It isn’t just the agents who are getting excited about property in Brazil. Equity International, a US investment company, stated “Brazil is an exciting market with profound political, economic and societal developments propelling it onto the world stage”

With a relatively stable political structure and an enviably healthy economy derived largely from foreign investment into residential real estate and oil reserves, the Latin American giant Brazil is, it seems, bucking the global downturn that is affecting many markets around the world and emerging something of an investors’ dream. In fact, it was named the world’s most significant emerging market in the respected Morgan Stanley’s Emerging Market Index just recently. Beleaguered global financial markets are looking at Brazil’s economy with admiration it seems. 

“Brazil’s central bank believes that it has underestimated the strength of its economy and has moved its previous forecast of 4.5 per cent GDP growth for 2008 up to 4.8 per cent,” says Samantha Gore of uv10, a Brazil property specialist company based in Spain. “Having studied figures just released, which show Brazil’s current GDP to be £749 billion in 2007, up 5.4 per cent on 2006, the official number-crunchers decided that they’d been too cautious.

Brazil does seem to be resilient to the turbulence in the northern half of the Americas, a turbulence which has sent shockwaves across Europe. And, while the Spanish property market is currently down on its luck, Brazil has the very same to thank for making a major contribution to its current fortune.”

Its property market is still very much in its infancy, however. Prices are still well below the £80k mark in most areas and are expected to yield a good rate of capital growth over the next few years as current demand way outstrips supply.

Estimates suggest capital growth could be as much as 20 per cent year-on-year. Nearly eight million new homes are needed to cater for the country’s growing population, but while its cities like Sao Paulo and Rio de Janeiro may be home to the largest number of its residents, it is the north-east region that is seeing a surge in investment property.

Much of the current real estate development is focused on the Rio Grande do Norte region on the north-east coast, and more specifically around Natal, the region’s capital. The city is widely regarded as having some of the finest palm tree-lined beaches and lagoons in the world that stretch for 400 or more miles. The coastline is characterised by a chain of sand dunes, including the Genipabu and Tibau do Sul dunes that have bars and restaurants dotted along their length, and the bays of Pipa and Pirangi. Small resorts are springing up, although the whole area is still new in terms of real estate development.

Uv10 is currently marketing a number of developments in the north-east. Among them, the Quinta da Lagoa resort of 83 high-spec studio, townhouses and bungalows that the company says is ideal for rentals. Located in Tibau do Sul, near Natal, the development guarantees five per cent gross per annum for three years from delivery. “Judging by the figures from its sister resort, Pousada dos Girassois in Pipa, which enjoys 80 per cent occupancy per year, you could stand to make a lot more,” says Gore. “Girassois is one of the most successful developments in Pipa and the value of property for sale in Pipa has doubled in just two years.” Prices at Quinta da Lagoa start from around £45,200.

Around 80,000 new houses and apartments are earmarked for the north-eastern region, especially around Natal, to cater for the region’s growing population and the demand from foreigners for second residences. While this appears a large figure the area is vast however, and development is controlled by the government to protect the environment, adding to the area’s appeal as an investment hotspot. Combine this with the potential for some good rental returns from the region’s increasingly buoyant tourism sector that has seen significant investment in sports and leisure centres in recent years, and you have an area of Brazil that is becoming more and more appealing.

“The property market in Natal is in its relative infancy and the coastline is almost development-free; supply currently lags way below demand,” says Trevor Byrne, GEM Estates’ Brazil expert. “New development is springing up alongside sporting and leisure facilities but the authorities are paying great attention to the environment before granting licenses – aesthetics and stability are of greater importance to them than squeezing every last penny out of every last square metre.”

GEM Estates is currently offering spacious beachside apartments and villas in Tibau do Sul for as little as £75,200 and village apartments in nearby Maracajaú from £45,000. Its Lago Azul development in Tibau do Sul has a frontline beach position with ocean views. There are many on-site amenities, such as pools and tennis courts. So confident is the company in the project that it is offering all clients a seven per cent guaranteed rental return for three years from completion. The company also has Ma-Noa Park in the village of Maracajau, near Natal, which is famed for its on-site aqua park and extensive sports facilities, including a golf course and football pitch. Prices are low and capital growth expected to be high.

“Prices of property for sale in Natal are incredibly low right now but outside investment in infrastructure such as golf courses and a new airport will increase demand for property and inevitably trigger natural price hikes,” adds Byrne. “Being the closest part of Brazil to Europe, thus drastically cutting down flying times to between seven and nine hours from most European cities, Natal has phenomenal beaches, a permanent summer and with year-round rental potential suits both audiences – the pure investor and the holiday-home hunter.”

The whole area, which enjoys a glorious climate, has attracted government funding to protect the natural heritage as well as enhancing the tourist infrastructure. Development work is closely monitored so as not to detract from the area’s natural wonders. Its towns, villages and small resorts are connected by the coastal highway that winds its way through countryside overlooking the bays and dunes, while Natal’s Augusto Severo International Airport has regular flights to and from Europe. A brand new multimillion-pound airport is under construction and is due to be completed by 2010. It will be the largest airport in Latin America. 

Further investment has come though the likes of international sports stars Rubens Barrichello, who is building a motor sports facility in the region, and David Beckham, the force behind a football academy in Natal. The project is timely for when Brazil hosts the 2014 World Cup. The region around Natal is also earmarked for several large golf courses. Projects such as these increase the region’s potential for tourism, and thereby rental income and capital growth on real estate investment significantly.

“The investment in the general infrastructure and tourism in the north-east of Brazil has been significant over the past few years, and is set to continue for the foreseeable future,” says Deanne DuKhan, portfolio strategist with specialist property company Experience International in London. The company is currently marketing a number of new high specification projects, including the Jacuma Beach Resort in Natal where prices start from just £63,700, the nearby luxury beachside resort of Praia Bonita, where studios and apartments start from £39,070 and the gated community of Pipa Paradise, which comprises 128 sizable apartments and villas that offer good value at prices from £61,899.

“The government is committed to developing the area and with the new airport just a couple of years away we feel that property in the Natal area and along this coastline of Brazil offer some of the most exciting investment opportunities we have seen in a long time.”

The economic uncertainty of the past twelve months has resulted in considerable changes to patterns within overseas property investment. Whereas the past decade was characterised by short term – high yield investment (resulting in destinations such as Dubai seeing record growth followed by considerable decreases in property values), the majority of investors now look for long term stability and sustainable growth. In short, investors are now looking for destinations which offer genuine long term stability, underpinned by sound economic fundamentals rather than hype and speculation. One destination which delivers on these criteria of sound economic fundamentals is Brazil, and in particular the popular resort area in country’s north eastern region of Natal.

Natal is located approximately 2,500 kilometres north of the country’s capital city of Sao Paolo, and is widely acknowledge as being the ‘destination of choice’ for holidays of both national and international tourists into Brazil. A superb tropical climate, coupled with the region’s spectacular coastline, have made the area popular amongst property developers, who see the region as offering considerable potential for long term investment returns. Many miles of undeveloped beachfront property stretch for considerable distances either side of the main city of Natal, offering investors unrivalled opportunities to capitalise early on in the development process.

There are a number of factors which contribute to the overall appeal of the region to investors, and key to these is the overall economic performance of Brazil. In fact, such is the anticipated growth rate in Brazil, that a recent report from Goldman Sachs stated that they expect Brazil to become one of the top five global economies by 2050. This anticipated future growth, underpinned by considerable natural resources (Brazil is estimated to hold more reserves of oil than Saudi Arabia), has only served to increase the overall appeal of Brazil to overseas investors.

On the back of Brazil’s strong economic performance, considerable investment is being made by the government into the tourist regions surrounding Natal. As well as a large number of development and housing projects being announced for the region, a large number of golf courses are also being built, designed to increase the overall tourist appeal of the region. At heart of this long term investment in the future of tourism in Brazil is the Tourism National Plan, put in place by the Brazil Ministry for Tourism. This long term strategic plan has proven to be the catalyst for a number of investment projects throughout Brazil, as it strives to achieve its target of increasing the number of foreign visitors to over 9 million.

Increased accessibility has also played a pivotal role within the increased appeal of the region to overseas investors. The new international airport in Natal, which is set to be opened in June 2010 will become the eight largest airport in the world, and already a large number of international airlines have committed to opening up new routes directly into the Natal region. With flights to Natal taking between 7-9 hours from the majority of European destinations, the number of visitors from the region is set to increase considerably in the years to come.

Brazil has undoubtedly caught the eye of overseas property investors in recent years, and over the course of the past twelve months a number of stunning new coastal developments have been announced in and around the Natal region. Offering beachfront locations which are simply unrivalled elsewhere, it is likely that the demand for property in Natal will only increase considerably over the next five to ten years.