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Buyer Sets Pace in Brazil
July 26, 2010Article by Ray Withers
Looking at what’s property in Brazil for sale to international buyers now, compared to what we were being offered in 2005-07 is a sign of how much things have changed in the world of overseas property, and in this case it is definitely a change for the better according to international property investment consultancy Property Frontiers. Director of the firm David Cox said:
“The mid-noughties was a great time in the overseas property industry, unfortunately it got a little too good. There was like a mad-rush to get developments on sale to capitalise on the lust of foreign buyers for off-plan property. Developers were throwing developments up anywhere and everywhere, and making incredulous leaps of faith as to where the investment potential would come from.
“I am not going to name names or shame developments (though I could), but looking at what’s hot and what’s not in Brazilian property now, compared to back then you can spot for yourselves what locations never went as intended, because they aren’t anywhere to be seen.”
When asked about the possibility that the destinations currently being recommended are just the next selection of developer and agent pipe-dreams, Cox responded passionately:
“Because that just wouldn’t wash in this climate, and almost all the agents and developers still standing know it. Today’s buyers are not willing to accept every single point of a development or locations investment potential on blind faith; they want to be able to see the potential for themselves, they want to see hard figures from impartial sources and they want a verifiable track-record of growth.”
Cox said that Natal is one of the most popular places with foreign buyers at the moment.
“Natal is a city on the sea with growth coming from many directions,” he said. “You have a massively growing tourism industry, as well as growth in the economy internally, not least from a growing retail sector fuelled by massive growth in consumer spending, as rising affluence grows the Brazilian middle classes. All this points to rising property values and growing demand for property to buy and rent, of course foreigners want to buy Natal property.”
Property Frontiers is currently marketing property in Brazil for sale from as little as £57,000. That will buy you a 2 bedroom apartment in Natal, within the Edificio Dr Geraldo Furtado development. As the price foretells the development is aimed at the local market, and — for Property Frontiers — to meet the growing demand among foreigners for affordable housing investments in Brazil.