Rental yields on Brazilian property set to soar during World Cup
Sepp Blatter, head of world football’s governing body FIFA, recently announced the 12 host cities for the Brazilian World Cup in 2014 and analysts are predicting a boom in property investment around the areas which will stage matches.
Natal, Fortaleza, Belo Horizonte, Brasilia, Cuaiba, Curitiba, Manaus, Porto Alegre, Recife, Rio de Janeiro, Salvador and Sao Paulo will all see some of the biggest nations in the world competing for the trophy in five years time and are likely to benefit from improvements in infrastructure as well as a raised profile on a global stage.
Vibecke Lykke Olsen, co-founder of Brazilian property developer ViaMar Groupo, says that the preparations for the World Cup mark an exciting time for the country.
She asserts that while the north-east of Brazil has always been popular with tourists due to its fantastic year-round climate and the fact that it is the closest point to Europe, the news that the World Cup is coming to Natal will add to its appeal.
“I know that a lot of buyers are already planning to be there in 2014,” she comments, saying that people who have invested in properties in the Pipa Beleza Spa resort close to Natal are particularly thrilled with the news.
The complex is due to open in October and most of the properties have already been sold. Because the development is run like a hotel, owners can easily rent out their accommodation and bookings are already being taken for the 2009 and 2010 season.
“I’m sure as soon as the word gets around it won’t be long before we’ve booked up the resort for the period of the World Cup because it’s such an exciting thing,” Ms Olsen asserts.
“When you think about world-class football, you think about Brazil and they enjoy it so much and they are brilliant at celebrating football so it’s the best place to be,” she adds.
Ms Olsen adds that the area is set to see even more infrastructural development in the run-up to the tournament.
In the last two years, the government has poured money into the area. It is only in the past five years that the state has really invested in the north-east and prior to that it remained fairly under-developed compared to the sprawling metropolises in the south of the country.
“Of course with the World Cup coming there’s even more of a reason to upgrade infrastructure and everything to do with tourism. The development will just take off, there’s no doubt about that,” Ms Olsen comments.
“The whole area, the whole state of Rio Grande do Norte will be affected by it in a really positive way,” she asserts.
For Brazilian property investors, the rewards are likely to be great, if the rental yields for holiday periods are anything to go by.
Ms Olsen reveals that prices treble at times like Christmas, New Year and Easter.
“I haven’t even thought about the prices yet for the World Cup but I’m sure every room will be booked up and people should book early to secure accommodation because it will be expensive, I’m sure of it,” she says.
Aside from the potential profits, Ms Olsen asserts that 2014 will simply be a superb time to be in the country.
“Brazilians are so good at celebrating – any excuse and they’ll put on the best party in the world – so the World Cup will be fantastic. We’re very excited about it, I think everyone is,” she concludes.
