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Why Invest in Brazil
Economic Factors
Brazil’s economy is making headline news in publications around the world. Already the 10th largest economy in the world and one of the four largest developing economies in the world joining China, India and Russia, Brazil will, according to Goldman Sachs, have the fifth largest economy in the world by 2050. Active encouragement and incentives for foreign investment who can own 100% of land and property. According to experts, Brazil is expected to be self-sufficient in oil reserves within the next year. Good currency exchange rates, making it cheap for foreign investors. President Lula’s progressive policies have brought many improvements to Brazil, including a decrease in inflation to an all-time low at 5.7%. This proves that the economy is a stable and safe to invest in now and in the future. Increase of thriving manufacturing industries relocated to Brazil and boosting the economy. The cost of living in Brazil is much lower than in most European destinations and currently stands at 20% of that in the UK. As a result, the cost of maintaining and managing your property is very low and it is small wonder that Brazil is also increasingly popular as an expatriate retirement destination. There is currently huge interest from Portuguese, Spanish and European Developers investing millions into touristic projects aimed at the European market.        
Property Market
The property market in Natal is in its relative infancy and the coastline is almost development-free, supply currently lags way below demand. New development is springing up alongside sporting and leisure facilities but the authorities are paying great attention to the environment before granting licenses, aesthetics and stability are of great importance rather than getting maximum return per square meter. The launch of David Beckhams football Academy in Natal is obviously a massive boost to the area and will propel the name world wide, which is great for investors who have already invested and who are about to invest. Prices in Natal are incredibly low right now as it is just beginning to emerge, one bedroom apartments start from as little as 500 pounds per square meter, but outside investment in infrastructure, such as the golf courses and new airport, will increase demand for property. Property in Brazil have increased over the last 5 years, some properties having prices rising as high as 20% in some areas last year alone.
Brazil Accessibility
Natal is the closest part of Latin America to Europe thus drastically cutting down flying times to between seven and nine hours from most European cities. A wide variety of airlines serve the international airport of Augusto Severo from London including British Airways and Thomson Fly and at just three hours behind GMT jet lag shouldn’t rear its ugly head. You can pick up some great package deals to Natal for as little as 450 pounds including hotel, or a flight only for 180 pounds. From around June 2009, the brand new Sao Gonçalo del Amarante Airport will be open and at the same time become the largest passenger and cargo airport in Latin America, and eighth biggest in the world. Augusto Severo is already exceeding its capacity of 1.2 million passengers per year; São Gonçalo del Amarante will be able to accommodate five million.
Climate
Natal is just five degrees south of the Equator, which enjoys a semi-arid climate and the sunshine is directly overhead at midday for most of the year. Annual temperatures average 27ºC, never fall below 24ºC even on winter nights and gentle Atlantic breezes temper the heat. Rainfall is minimal and this part of Brazil is reassuringly free from natural phenomena such as hurricanes, tropical storms, tsunami and earthquakes. Natal boasts the purest air on the continent and second purest in the world losing only to Antarctica which hasn’t quite got the same property market, it’s a bit on the chilly side.
Tourism
The main area for tourism development in Brazil is the north east region. This has originated from a large public investment programme which was initiated around 10 years ago: the Tourism Development Programme in the North East, PROSETUR / NE. Over 670 million dollars have been invested through this programme, on transport, the environment, infrastructures, and tourism management bodies. The success of this has resulted in the implementation of PRODETUR / NE II with an estimated investment of 400 million dollars. Between 2002 and 2005, the number of international passengers at Brazilian airports increased by 50%. The north east of country, the main leisure destination in Brazil, saw a 160% increase in travelers within the same time period. |
