Brazil Delivers on Its Property Promises

With some of the most exciting opportunities in overseas property situated in far-flung locations around the world, many investors who are making good returns on their overseas property portfolios never get to see the properties in question. But with the global travel and tourism markets constantly evolving, some destinations which were previously thought of purely in terms of their investment potential are now coming to be considered as viable holiday destinations.

Two years ago, real estate in Brazil was still being treated with some caution by property investors. While the economy was beginning to grow, and the idea of the BRIC (Brazil, Russia, India & China) countries was coming to the fore, it was still difficult to consider property investments away from the established business and cultural centres. When developments began to appear in and around Recife, there was some suspicion of the viability of the investment, and where the rental income would come from.

With the recent launch of a number of lifestyle resorts in some of the more untouched parts of the country, there is a whole new market opening up - residential tourism. With the development of resort-based properties, ambitious plans for golf, equestrian and spa facilities, and a healthy dose of celebrity endorsement, buyers are beginning to view Brazil's north east coast as an extension to the Caribbean, or according to one agent, the new Algarve.

The area around Natal is Brazil's closest point to Europe, boasts a climate that with an average temperature of over 24 degrees celsius in winter, and according to the Institute for Applied Economics Research, is the safest city in Brazil. There are now direct flights from London to the city, and with the new resorts managing to secure large tracts of unspoiled beach and coastline, the prospects not only for a relaxing undisturbed beach holiday, but also space for watersports and other activities are superb.

Other factors from more established overseas real estate markets are also helping to attract buyers. Grand Natal Golf, a huge development of over 30,000 properties stretched along 7km of beach, is being marketed in the UK by Resort Group International, and has the kudos of being able to use Brazilian football legend Ronaldo and actor Antonio Banderas as ambassadors for the project. Both celebrities have already secured their properties on the development, with Ronaldo also opening a football academy on the site.

On top of celebrity endorsements, the Grand Natal Golf project also includes plans for a plastic surgery clinic, and with direct flights starting at just £190 return, the cost of cosmetic surgery tourism is likely to rival southern European destinations.

The major attraction with buying property in Brazil however, is that anyone buying property there will open up the potential rental market not only to Brits and Europeans, but also to the US market, who increasingly see Brazil as an alternative to the beaches and overdevelopment of Mexican and Caribbean resorts. Resort Group International's Graeme Grant says "Now the tourism industry is discovering the fabulous 418 km coast around Natal and property in this area is moving beyond the investment phase into second home purchases. The region is popular not only with Europeans but North Americans and Brazilians as well. Natal is the new Algarve."

According to NASA surveys, Natal and Antarctica enjoy the cleanest atmosphere in the world, so developers are also keen to make sure their green credentials are recognised as the region develops. As well as protecting the local environment, this should also make sure that there is no overdevelopment in the future, keeping resale values high.

The Brazilian government is also getting involved in promoting the growth of tourism, and protecting the environment. The Ministry of Tourism has only been in existence since 2003, but since then has poured hundreds of millions of dollars into promoting and protecting the country. Adam Cornwell of Gem Estates, who are promoting the Porto dos Corais development just outside Natal says "The target is to grow tourist arrivals annually from the current base of 5.5 million to 9 million over the next couple of years. Rio Grande do Norte is seeing the most tangible results with tourist arrivals for the State increasing by 134% between 2002 and 2005."

It isn't just the agents who are getting excited about property in Brazil. Equity International, a US investment company, stated "Brazil is an exciting market with profound political, economic and societal developments propelling it onto the world stage"