Why the early bird catches the worm
Who hasn’t, at some time in their lives, looked at the value of property in a given area and thought to themselves “if only I had bought a piece of property there back when prices were low, just think how much money I would have made”. Well this time, that profit can be yours. Buy now in Brazil and in 2, 5, 10 years’ time you will be counting your money and leaving others to wonder why they didn’t invest when the time was right!
When it comes to property investment in Brazil, timing is everything and Brazil currently has some of the best value property in the world along with some of the highest forecasted growth.
Market analysts are now seeing price rises of up to 20% per annum in top residential areas of Natal, which are popular with the local market, as well as up and coming beach towns such as Sao Miguel do Gostoso where land has been rising in value by some 30% per annum.
With uv10’s specialist knowledge of the region, as well as our personalised guidance and expertise, you will be offered only the very best investments that this fast-growing market has to offer. Not only have we hand-picked the best value developments with the highest forecasted returns but we have done our due diligence on the developments we offer so you can relax in the knowledge that your investment will be safe, secure and completely legal.
uv10 has analysed the factors responsible for this explosion in the property market and the reasons why the next 5 years especially will see amazing returns for those investing in off-plan property now.
Domestic and International Tourism Boom
- 5.1 million international visitors to Brazil in 2010, spending a record US$5.9 billion.
- Natal to have a new International and Domestic Airport.
- Current Natal airport already operating at 110% capacity
- Flights to the region under 7 hours from mainland Europe
- Cost of living far lower than UK with excellent cuisine, lively atmosphere and some of the world’s best beaches
- 96% of first-time visitors surveyed, vowed to return
- In November 2007, a new bridge over the Potengi River to the north of Natal was opened which vastly sped up access to the north shore. This 194 million Real investment has encouraged economic expansion in Natal by opening up this area.
- Over 7,000 miles of mainly semi-virgin coastline
- Perfect climate with over 300 days of sun per year and average temperatures of 28°C giving rise to a year-round tourism and rental market
- Brazil has been selected as the host of the 2014 Football World Cup and will have massive worldwide exposure and increases in tourism.
- Free from hurricanes, volcanic eruptions and earthquakes
- Natal officially has the purest air in Latin America and the 2nd purest in the world.
- Natal is officially the safest state capital in Brazil
- 750 million US$ recently invested by government on improved tourism infrastructure such as airports, roads, marinas and environmental preservation creating over 200,000 new jobs last year alone
- 1.8 billion US$ earmarked for foreign investment in tourism infrastructure over the next 4 years (hotels, golf courses, condos, resorts)
- Enormous and expanding presence of luxury international hotel chains such as Renaissance, Kempinski, Inter-continental, Breezes Superclubs, Marriott, NH, Sol Meliá and Preferred Hotel Group with an increase of 135% in the number of hotel rooms expected over the next 5 years
- Beachfront land being sensitively developed to a truly luxury standard, and this is just the beginning of what we are going to see on the market, currently at the best prices
- Foreign property owners hold free and clear title and the property buying process in Brazil is very straightforward
- Prices in the region will never again be as low as they are now and history tells us that when the major corporations and government alike are investing so much capital in an area, then that is the time to invest.
- The political situation in Brazil is very stable under Dilma Rousseff, Lula’s successor.
Positive Economic Growth
In a recent online study, 3000 prospective property buyers were asked which countries they believed would provide the best return on investment over the next 5 years. Brazil came in 2nd with more than 3 times the number of votes that Spain received, 14 times the number of votes received by France and twice the number of votes received by emerging market Morocco.
- Brazil’s domestic mortgage market, operational since 2007, is going from strength to strength with lending up 58% in 2010 and a further 30% in 2011.
- Bank lending went from 3 billion dollars in 2004 to almost 83 billion dollars in 2012, still representing a mere 6% of the country’s GDP.
- There is huge disposable wealth in Brazil right now and the local market is buying up property in unprecedented numbers, providing exceptional investment opportunities in that sector for foreign investors.
- Housing prices in Brazil increased, on average, between 20 and 30% between 2008-2011, with 2012 showing increases of a healthy 15%
- Average wages in Rio Grande do Norte, Capital Natal, rose by 77% between 2002 and 2009.
- Goldman Sachs predicted that Brazil would be one of the top 5 global economies by 2050
- Brazil’s economy is already about to become the 7th largest in the world
- Media full of positive and encouraging reports on future performance of property market
- Inflation now under control
- Country self-sufficient in terms of oil and contains more than 1/3 of the worlds water reserves
- Natural resources: Petrobrás announced at the end of 2007 that it had found some 8 billion barrels of oil at the TUPI oil fields. Jupiter, an equally large field, was announced by Petrobrás in January 2008 with Exxon Mobil Corp finding a similar field in January 2009. These are some of the largest finds in recent times and will make Brazil a major world exporter of oil within a few short years.
- A two-day oil & natural gas auction was recently held (Q3, 2013) and bids of 2.7 billion dollars were awarded for the first 85 concessions, 800 times the amount expected to be invested.
- In 2009, Lula implemented major economic reform policies including massive privatisation of government-owned enterprises, major investment in infrastructure and social housing, changes in the tax system and social security. The benefits of these policies are now being felt nation-wide.
- The political situation in Brazil is stable after the election of Brazil’s first female president Dilma Roussef, in October 2010, who has pledged to continue Lula’s most successful policies, not least My House, My Life.
As the Brazilian economy continues to buck the trend and out-perform most others around the world, 2014 – World Cup Year – is set to be a very interesting time in the Brazilian property market with unparalleled returns available to those who invest wisely.
Please contact uv10 for more information.