Brazil’s economy is the strongest in South America and its recent economic performance has been exceptional; Q2 2008 GDP growth was 6% and foreign investment in 2008 is set to equal the record US$34.6 billion in 2007. Economic health is visible in Brazil’s growing wealthy population; Brazil’s millionaire list grew by nearly 50% in 2007. 

Along with the other ‘BRIC’ nations (Brazil, Russia, India, China), Brazil is predicted to become one of the world’s economic powerhouses by 2050 and according to The Economist, “investors are most bullish on Brazil.”

Market Analysis

The combination of a housing shortfall, increasing wealth among Brazilians and the recent introduction of mortgages means Brazil’s property market is, as described by A Place in the Sun in August 2008, “set to soar”.

Brazil Market Overview 

“Industries coming from Germany, England and the US are making more money now in Brazil than in the European and American markets,” André Elali, Professor of Taxation, Natal.

Property investors are fast discovering Brazil’s emerging property market, heralded as one of the world’s most promising property investment destinations. 

Property Market 

Brazil is classed in the Knight Frank International Residential Review 2008 as one of the few “stand-out hotspot locations in 2008”. Property investors are fast discovering Brazil’s emerging property market, heralded as one of the world’s most promising property investment destinations.

The north east region around Natal is a major focus of investor interest with property price growth of 30% in 2007 alone. The combination of a housing shortfall – 27 million properties, according to government estimates increasing wealth and the recent introduction of mortgages, means Brazil’s property market is, as described by A Place in the Sun, “set to soar”. The introduction of mortgages for non-residents will boost the market further. All indicators point towards excellent rewards for investment in Brazilian property, which is already showing high capital appreciation and returns for property investors. 

Economic Growth 

The Brazilian economy, the 10th largest in the world, is performing exceptionally: strong GDP growth - 6% in Q2 2008, controlled inflation at 4.7% in August 2008 and a booming job market. Along with the other ‘BRIC’ nations (Brazil, Russia, India and China), Brazil is predicted to become one of the world’s economic powerhouses by 2050 and according to The Economist, “investors are most bullish on Brazil.” Foreign direct investment (FDI) in Brazil has increased massively in recent years, rising by 84% in 2007. Standard & Poor reported accumulated FDI of US$12.4 billion in the first 4 months of 2008 and it is set to equal the 2007 record. Brazil’s economic strength is its huge export market - Brazil is the biggest exporter in the world - in commodities and food, and its bio fuel technology. The recent discovery of large oil fields off the Brazilian coast shows great promise for further impressive economic performance. 

Tourism

Brazil boasts Latin America’s second largest tourism sector. Brazil’s National Plan for Tourism 2007-2010 aims to increase tourist numbers to 9 million annually, and Brazil is well on track for this target. Its attractiveness as a holiday destination is expected to increase greatly when Brazil hosts the World Cup in 2014.Direct flights from European destinations are increasing with Brazil’s north east coast just a 6.5 hour flight from Europe. The government has pledged a US$2.5 billion investment to upgrade and modernise Brazil’s airports by 2010. Natal’s São Gonçalo airport – set to be the largest airport in South America when completed in 2010 – will undoubtedly boost tourism in the north east region. “We expect almost 40 million tourists to come to Brazil via Natal over the next 10 years,” Fernando Fernandes, Secretary of Tourism for Rio Grande do Norte. 

About Tabatinga & North East Brazil

Natal, in the state of Rio Grande do Norte on Brazil’s exotic north east coast is described by the state tourist board as a place where “everything is beauty, purity and nature”. With around 400km of coastline and a land of golden beaches, Natal is an up-and-coming tourist destination and prime property investment location. As part of the government’s National Tourist Plan for worldwide promotion, Natal will see significant investment in tourist infrastructure over the next 5 years.

The coastline south of Natal is perhaps the state’s most beautiful, famous for its cashew trees, freshwater lagoons and endless sandy beaches. Tabatinga is fast becoming one of the state’s favourite holiday spots with miles of sandy beaches, rolling sand dunes, 5 beach lagoons, crystalline sea frequented by dolphins, 7km of coral reef and the Arituba Lagoon a freshwater lake to the south of the town. Offering excellent surf and windsurf, Tabatinga is a water sports paradise.

A quintessential Brazilian coastal town, Tabatinga is already showing its potential as a major resort for holidaymakers from around the world. Firmly on the radar of wealthy Brazilians, this is an emerging property market within the larger emerging market of Brazil.

Natal is a modern and safe city, famous for its clean air, quality of life and year-round warm climate. An estimated investment of over US$1.8 billion is earmarked for infrastructure improvements in the area including new hotels, golf courses and luxury resorts. Recently, Natal’s profile has grown hugely with the announcement of the new David Beckham World of Sport alongside Rubens Barrichello’s Formula One driving centre.

The property market in the north east is already showing promising growth – 30% was registered in 2007 alone. “We are already in a market boom, but this is just the tip of the iceberg,” reports Ricardo Abreu, President of Abreu Imóveis.

“I have travelled around the world for 25 years. One of my favourite places in the world is north east Brazil. Here, I have everything I want,” Julio Cesar Piña Rodrigues, Chief Operating Officer of Brasil Brokers.