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Brazil Is Booming Again
January 4, 2010Article by Ray Withers
According to Global Property Guide, which is known for being an impartial source of information on global property markets, Brazil is one of the few places in the world that has seen a restart to the boom stalled by the international downturn.
“In Q3 2009, the average price of new launches surged by 25% to BRL3,465 (US$1946) per sq. m. from a year earlier. The number of units launched also rose by 44% to 7,858 units from 5,462 a year ago, according to Cyrela Brazil Realty, Brazil’s largest developer. The average price of sales increased by 13% while the number of units sold rose by 28%, within the same period,” reads the report.
All of this revitalised growth is because of Brazil winning the right to host the 2016 Olympics, according to Global Property Guide.
David Cox, director of international property investment consultancy Property Frontiers agrees that Brazil has seen its construction and real estate boom restart in the second half of 2009, but believes that the World Cup and Olympics are simply large factors in a much wider picture.
“Brazil property is currently one of the biggest sellers with international investors, but this is not just because of the Olympics or the World Cup. Yes, these are major factors, and perhaps even catalysts, but the country’s growing affluence and demand for housing can not be argued away,” he said.
“Brazil was forecast to grow into the 5th largest economy in the world by Goldman Sachs investment fund, and that was before oil was discovered in the territory. The oil discovery sent forecasts for growth in the Brazilian economy, and of affluence amid the massive population of the scale, and that is why demand has increased exponentially with foreign investors,” he explained.
Property Frontiers are currently marketing the Natal Ocean Club , which is surely one of the finest new build properties in Brazil, and is currently being sold off the plan.
Natal Ocean Club is a luxury hotel resort development, offering 1 and 2 bedroom apartments alongside 1 and 4 bedroom villas, set in 20 acres of tropical gardens and boasting over 300m of private beach.
Natal is one of the host cities for the World Cup in 2014, which will boost rental incomes, but units in the Natal Ocean Club are expected to yield 12% in rental incomes in the year 2011. Surprisingly 1 bedroom apartments in the Natal Ocean Club development start from just £138,000.