Also known as the City of Sun, Natal is one of Brazil’s most talked about destinations. Offering some of the best beaches in the world, the 2nd purest air on the planet and average year round temperatures of 28ºC, it’s not hard to see why so many people are choosing to invest here.
Located in the north east State of Rio Grande do Norte, visitors flock to Natal from all over the globe to experience the hundreds of miles of unspoiled beaches, vibrant nightlife, fabulous restaurants and the uniquely Brazilian “joie de vivre”, in Brazil’s safest capital city (according the Institute of Applied Economic Research).
Travel north of Natal and you will discover unspoiled paradise in locations such as Sao Miguel de Gostoso. This is the perfect place to relax and let your senses absorb the white sands, turquoise sea and palm trees as you sit with cocktail in hand, or, if you are feeling slightly more adventurous, head to one of the world-class kite surfing schools, or take a buggy trip across the dunes!
Vibrant International Resort
To the south, gems such as the vibrant town of Pipa, known as ‘The Global Village’ offer a multicultural, laid back vibe with top-class restaurants, lively bars, designer boutiques and friendly locals, not forgetting the annual street Carnival! Pipa offers a series of calm, quiet swimming bays, where the dolphins are happy to keep you company and neighbouring Tibau do Sul provides a magical backdrop to the sunset on its beautiful lagoon.
Due to super-strict conservation laws, construction of new buildings is very restricted and designed in harmony with the surrounding nature, so this region will always offer quality over quantity coupled with high demand and low supply.
Booming Local Economy
Domestic flight traffic throughout Brazil increased from 20 million passengers a year in 2003 to 50 million by September 2009. Between 2010 and 2011, demand increased by a further 16 percent, and growth continued apace in 2012 at around 8%. As one of Brazil’s most popular tourist destinations, Natal received a high proportion of visitors. Despite the current world economic climate, hotels in Natal are reporting an average of 70% occupancy, 10% higher on average than other destinations in North and South America. The arrival of the new airport in 2014 will bring an influx of foreign as well as Brazilian visitors to Natal, and having been chosen as one of the FIFA 2014 World Cup host cities means Natal will benefit from the 1.8 billion U.S. dollars that have been earmarked for improvement in local infrastructure.
Economically, Brazil is booming right now and has been largely unaffected by the recent global crisis. The Brazilian mortgage financing system has been insulated from financial market turmoil due to strict regulations and mortgages today make up just 7.9% of the GDP, allowing huge room for growth. Furthermore, Brazil is now officially a middle-class country, with 13 million people moving from low to middle class and 6 million from mid to high in the last 6 years alone. The middle class now makes up 52% of the population, up from just 37% in 2003.
Already the 7th largest economy in the world, Goldman Sachs, as has been widely reported, predicts that Brazil will become one of the top 5 global economies by 2050.
Closest Point to Europe
With this international recognition of its flourishing economy, its enviable geographic location as the closest point of South America to Europe, the disproportionate amount of people in the north east region moving from low to middle and middle to high income, not to mention huge spending in infrastructure, Natal is now one of the best places to invest in the booming local property market.
To put this in perspective, in May 2009, when the government launched its ‘My House, My Life’ subsidised mortgage initiative, which involves building millions of homes to meet the immediate housing shortage, (the current deficit stands at some 5.6 million homes, with household formation driving demand for an additional 1.5 million homes a year) demand was so high in Natal alone that all available places on the scheme had been taken within 10 minutes! Currently there are an estimated 25,000 registered people waiting for affordable housing just in the city of Natal.
With employment on the increase (at the end of 2013, unemployment reached its lowest ever record of just 4.6%!) and means-tested, subsidised mortages available for the first time, Brazilian buyers are clamoring for affordable, quality housing all the way up the property ladder.
uv10 is working closely with experienced, local developers offering a chance for foreign buyers to cash in on this boom by buying up off-plan properties in prime urban, or urban expansion areas, ultimately aimed at the local market for either rental or resale. This is where we are seeing huge returns for investors, with pre-release units prices being offered for up to 30% below market value, starting from just R$135,494, and with ROIs of up to 40% through the build period alone.
It is estimated that by 2020, an additional 20 million homes will be required to meet the growing demand for residential property in Brazil so the sky is the limit
Contact uv10 for more information on local market property and subsidised housing development opportunities.