Private Property Investors Favouring North East Brazil
25 August 2011
Once again north east Brazil is proving popular with overseas property investors. The latest report, from The Move Channel.com tells us that 54.6% of enquiries about Brazil properties on their site in the last year were for property in Rio Grande Do Norte (AKA Great River of the North).
The area, which includes the mouth of the Potengi River and Natal City received nearly twice as many enquiries as the state of Ceara, the second placed region. Paraiba was third with 5.2%, Bahia 4th with 4.6%, and Alagoas was fifth with 4.4%, according to the firm.
Many will be surprised by the absence of Rio de Janeiro in the top 5, even more surprised to find that it was actually way back in 11th with less than 1% of the votes.
This is most likely because the Move Channel is a property portal primarily used by holiday home buyers, and holiday home investors. These are predominantly private buyers who are buying a home to rent out to holiday makers, many of them wanting to use it for their own holidays as well. These types of buyers are attracted by the low prices, rising tourism and high yields on offer in the north east of Brazil, whereas residential investors favour the main cities like Rio de Janeiro.
Of course all investors, be they private or huge funds are keen to get a piece of Brazil's action in the next 5 years; particularly as it hosts the FIFA World Cup in 2014, and the Olympics in 2016. Fuelled by reports of £60,000 price rises of property in East London due to host the Olympics in 2012, experts are predicting massive price rises in Brazil during this time. Natal, which will be a host city of the World Cup is a particular favourite, because prices are currently very low.