These Dazzling White-Sand Beachfront Lots Are An Irresistible Bargain
Due to the current strength of the U.S. dollar against the Brazilian real, I’ve been paying close attention to the real estate market in Brazil. At the time of this writing, the Brazilian real is trading at 3.25 reais to the U.S. dollar… a 147% increase in buying power in Brazil for U.S. dollar holders since 2014.
If you’re spending U.S. dollars, now is the time to be seeking out real estate deals in Brazil, as the real has moved dramatically in your favor… and no one knows how long this trend will last.
The Brazilian property market presents investors with a unique opportunity to profit from a simple change in currency… or capital appreciation… or both. In fact, according to the most recent national price index compiled by the Brazilian Institute of Economic Research, property prices have increased by 11.38% year-over-year nationwide as of second quarter 2016.
Fortaleza, One Of Brazil’s Hottest Markets
One of the best performing property markets in the national price index is Fortaleza, where prices have increased 13.47% year-over-year as of May. This trend is expected to continue as there’s a housing deficit in Fortaleza, thanks to Brazil’s growing middle class.
Moreover, I believe that property investors have a huge opportunity to capitalize on the strong and growing short-term rental market in Fortaleza.
Note that in local terminology, the coastline that runs southeast from Fortaleza is called the “east coast,” while the coastline running northwest from Fortaleza is called the “west coast.”
As you move down the east coast from Fortaleza, there are several capital appreciation plays that you can take advantage of. The availability of residential beachfront lots is limited… but we’ve been able to identify a beachfront-lot offer for investors that’s ideal for capital appreciation.
The state of Ceará is focused on developing the east coast for tourism. They’ve built a new airport in the area, and the state’s tourism authority is working to find a private operator to begin accepting international flights on a regular basis. The approvals are already in place for this. On top of that, the state has begun the expansion and renovation of highway CE-40, the main state highway that runs along the east coast.
All of these factors suggest that the path of progress is along the east coast of the state of Ceará, starting in Fortaleza. Clearly, this is a region that investors need to pay attention to.
Fortaleza is the capital of Ceará. It’s the nation’s fifth-largest city, with a population of 3.6 million, and the country’s top tourist destination. So not only is the city popular among foreign visitors, but it enjoys a huge domestic tourism market, as well.
We’ve identified a new project in this area in its earliest stages of development. The lots here are more than five times the size of the lots sold in nearby Canoa and Fortim, yet, at the moment, they’re selling for one-fifth the price per square meter in Fortim and almost a quarter the price in Canoa. At the exchange rate as of this writing, these lots start at the equivalent of just US$59,000.
As this coast continues to develop, as I believe it will, I see these lot prices tripling in value… at least. Add in further strengthening of the Brazilian real, and your returns could be even greater.
I can’t help but compare the northeastern coast of Brazil to Mexico’s Riviera Maya. I predict the same kind of growth along Brazil’s coast that we’ve seen along Mexico’s coast from Cancún to Playa del Carmen and Tulum. With the exception of the city of Fortaleza, which dwarfs Cancún in terms of size and population, the beach towns developing along this coast are very similar to those of the Riviera Maya.
If you’re an investor looking for capital appreciation plays, I’d recommend that you look seriously at the beachfront lots being offered in Retirinho. To learn more, get in touch here.
Editor, Global Property Advisor