Brazil has some of the best beaches in the world
If you’ve been following these dispatches you’ll know I’m bullish about Brazil—Fortaleza in particular. And today, there is a pocket of opportunity right in the heart of downtown Fortaleza that proves my point. This area has been neglected…
But there is a plan. And you can profit from it.
Last year Brazil became a middle-class country. This year, 2.5 million new jobs are expected, and growth of 5.5%. Credit and mortgage finance is opening up. Brazilians have a new confidence. My Brazilian contacts tell me that today when they make some money, they invest it in Brazil.
It wasn’t always like this. In the past when someone got ahead they moved the money offshore. Today, Brazilians see that some of the best opportunities are in their own country. As soon as people move into that middle class category they become consumers. That includes putting themselves in the market for a shiny new condo or a vacation in the sun.
And Fortaleza is set to profit from this middle-class consumer boom. Brazil’s best beaches are here. And Brazilian beaches are among the best in the world.
Three million Brazilian visitors came to Fortaleza in 2008, making it the country’s top tourist destination. In February of last year 678,682 passengers came through Fortaleza’s airport. This year the number rose to 912,670—up 34.5%. This surge is exacerbating the already chronic shortage of short-term rentals.
Iracema Beach is just to the west of Fortaleza’s bustling boardwalk. Over 1.1 million revelers came here last New Year’s Eve. Concerts and major beach volleyball tournaments are a regular fixture. But until now, visitors have preferred to stay along the family-friendly boardwalk.
But Iracema is getting a major facelift. The result will be to effectively extend the boardwalk to Iracema. This project is part of the $5.6 billion investment in tourism and infrastructure leading up to the 2014 soccer World Cup.
The largest aquarium in South America is planned for Iracema, costing $135 million. There will be $30 million invested in a general upgrade of the area, including the extension of the boardwalk.
There is $10 million being spent on renovating the Cultural Center building. It will house two cinemas, two theaters, a museum, bars, restaurants, a planetarium and a public library. Last year they hosted an exhibition of Rodin’s sculptures, and coming up, Picasso.
Dingy bars will be replaced with more family-friendly amenities…better hotels and shiny new condos. Three years from now there will be no visible break from the boardwalk to Iracema beach and to the Culture Center.
Families on vacation will want to stay here. Everyone who comes will want to stay here.
Yet today, property prices in Iracema are 22%-60% lower than along the boardwalk. Buy short-term rentals here and you’ll enjoy strong yields and the prospect for capital appreciation.
Editor’s Note: Ronan McMahon is the Executive Director of Pathfinder (International Living’s preferred real estate advertising partner), which focuses on opportunity for gains in strategic pockets around the world-before most folks have even heard of them. He writes for Pathfinder’s real estate investment service, the Real Estate Trend Alert.
