Emergence of a strong middle class is creating the property boom
A residential property boom is under way in the north east of Brazil, historically the poorest region of the country, it is claimed.
The region is now on the move and posted the highest GDP growth figures in the country from 2000 to 2010, some 4.2% versus 3.6% for the nation as a whole.
A strong middle class is emerging and a residential property boom is the result making it a paradise for real estate investors in particular.
According to Samantha Gore, sales manager for Brazil based agents uv10, Natal, a major city in the northeast region, is now one of Brazil’s fastest growing municipalities and property developers are busy keeping up with demand that is coming from all directions.
‘Wealthy Natal locals are snapping up homes for holiday rentals, seniors from cooler southern states are keen to spend their retirement in the sunshine and the growing, increasingly well paid, workforce is keen to get a foot on the property ladder,’ she said.
‘Add international investors ahead of the 2014 football World Cup of which Natal is a host city, and you have just some of the reasons why this is such a buoyant property market,’ she explained.
For those who prefer beach life to city life, the resort of Ponta Negra, is a 15 minute drive south of Natal’s busy centre. It is often described as one of the most famous beach in Natal and referred to as the ‘Postcard of Natal’. Its three kilometers of white sand and dunes has hotels, restaurants, beach bars and surfing.
‘We’re promoting Natal Beach Cup, a development of 23 one and two bedroom holiday apartments in Ponta Negra. The developer is so confident of the project’s earning potential that, upon completion in June 2014, he is guaranteeing a four year 6% rental return or full rental management for those choosing to operate outside of the guarantee,’ said Gore.
‘For clients wishing to resell to the local market, the developer offers assistance in this area too, making your exit strategy that much more assured. Fully licensed and priced at 15% below the nearest comparable development, a one bedroom can be picked up from 110,059 Reais, that’s just Ł33,477, a superb entry level investment,’ she added.
Located on the famous Route of the Sun Boulevard, a 10 minute walk from the beach and just seconds from local amenities, Natal Beach Cup is a boutique holiday apartment development complete with 24 hour security, private off road parking and stylish reception and leisure areas. From floor two and above there are views of the Atlantic Ocean.
And yet property developers in Natal still go bankrupt leaving investors in the lurch…
It is a "residential property" boom, not a holiday house boom!
Yes of course the financial crises hit the market for international holiday houses also in Brazil. But Brazil's residential property is driven by a heavily subsidized social housing program making it possible for millions to enter the housing market.
It's that easy!