As Carnival time approaches, savvy investors get serious on Brazil property

Brazil Property investors look to capitalise on the local housing shortage in Natal in North-East of Brazil Despite all the obvious allure of the tropical beach resorts, it is Brazil’s less glamorous local first residence market that is currently catching the eyes of the savvy investors examining property in Brazil. As a consequence of the strong economy, prosperity levels are rising fast in Brazil, with sharp increases in housing demand.  In just two years, 23 million people have risen to prosperity level C (middle class), which now counts 85+ million people. This middle class has a monthly income between 2 and 10 times the official minimum wage.  With insufficient first home housing stock to satisfy local demand, Brazil currently has an estimated housing deficit of a minimum of 8 million properties.  The middle classes are expected to purchase between 1,000,000 and 1,200,000 units per year until 2015 and the well publicised Minha Casa Minha Vida programme is planned to deliver 3 million homes by 2014. Further fuelling demand is the fact that for mortagages have only been available to residents for the past 3 years.  Mortgages account for only 2% of GDP in Brazil, versus 65% in the United States and 74% in the UK, so consumers aren't feeling the effects of credit squeeze. Massive growth in this sector means that domestic mortgages are predicted to increase by up to 600% by 2014. With this in mind it is clear that the first residence market within Brazil’s major cities is a major investment opportunity and no region has seen faster growth that the North East.  As an investor, this means there is an opportunity to invest in well located local property that has a well defined target market and exit strategy, attracting middle class tenants and buyers.  While the tourist property in Brazil is still popular with investors and those seeking a beautiful holiday home with additional rental income, there is no doubt that the current global slowdown has had an impact on this market.  Investors buying beach style condo resorts need to view this as a longer term investment. Carefully selected land in Brazil still offers investors excellent potential returns, but great caution needs to be excercised on selecting the right location.  In the short-term, domestic demand maintains a dominant position given Brazil’s current economic situation.  Investing in first home, residential property in Brazil is a safe and very profitable strategy, with high returns and high demand for such properties.
Continue reading...

2014 World Cup Road Infrastructure Improvements Announced in Natal

The investments into infrastructure which are planned for the world cup 2014 have been announced in more detail in the “Tribuna do Norte” newspaper. Back in September the Secretary of Infrastructure of the State of Rio Grande do Norte and the Secretary of Urban Mobility of Natal had requested funds from the federal government for the construction of new and improved roads and bus routes connecting the new airport of Sao Gonçalo de Amarante, the airport of Augusto Severo, the hotels of Ponta Negra and the Via Costeira to the area where the new stadium is to be built in preparation for the 2014 FIFA world cup. Yesterday this was unofficially confirmed to be approved. The improvements to be made to the roads and related infrastructure in Natal over the next 2 years in preparation for the 2014 FIFA World Cup have been announced. R$ 387.5 million has been allocated for the following improvements to be made: · Connection of the BR-406 to the new Sao Gonçalo do Amarante airport (est. R$ 15m) · Structural corridor from the west to the BR-226 (est. R$ 39.5m) · Roadway in front of the city centre (R$ 36.1m) · Geometric restructuring of the Mor Gouveia (R$ 23m) · Connection of the Mor Gouveia road with Prudente de Morais (R$ 26.1m) · Connection of the Prudente de Morais to the Raimundo Chaves (R$ 18.2m) · Connection of the Prudente de Morais to Lima e Silva (R$ 75.4m) · Connection of Lima e Silva to Romualdo Galvao (R$ 21.6m) · Connection of Salgado Filho to Marginal da Avenida (R$ 9.2m) · Connection of Salgado Filho to Mor Gouveia (R$ 28.3m) · Connection of Roberto Freire to Aryton Senna (R$ 20.4m) · Connection of Roberto Freire to Missionary Gunnar Vingren (R$ 20.8m) · Connection of Roberto Freire to the Via Costeira (R$ 15m) · Implementation of boarding platforms for loading of passengers (R$ 13.3m) · Sidewalks, walkways and signage (R$ 15m) · Elongation of Prudente, connection to Augusto Severo and Arena das Dunas (R$ 10.5m) Perhaps you are not familiar with the names of all the roads, or their location, but R$ 387.5 million / 137.6 million GBP/ 146.2 million Euros has been allocated. For more information on plans for Natal for the 2014 FIFA World Cup, visit this link (in Portuguese): http://www.copa2014.org.br/cidades-sedes/NATAL/
Continue reading...