Putting the “Live” in “Live and Invest in Fortaleza”

Friday, Oct. 31, 2008

Read more about Fortaleza, Brazil, in International Living Postcards—your daily escape

Dear International Living Reader,

It’s time you heard from another corner on Brazil’s Fortaleza.

No doubt you’ve been following Ronan McMahon’s Postcards about Fortaleza’s seemingly unstoppable real estate market. It’s Brazil’s hottest place to invest right now.

But I came to Fortaleza for something else entirely. I’m here on the northeast coast to find the best place to own a second home, live part-year, or retire. To me, the investment angle is secondary.

I often refer to Fortaleza as the “gleaming centerpiece” of Brazil’s northeast coast. As viewed from across the bay, its glistening buildings stand in sharp relief against the deep-blue skies, fine-sandy beaches, and emerald waters. The ocean here is warm and calm all year, and the beaches are clean, popular, and well maintained. On any given day, you’ll see plenty of tourists and locals alike enjoying the sand and surf right in town.

Its boardwalk is cheerful and bustling day and night with joggers, strollers, swimmers, and folks who came to enjoy one of the region’s best artisan handicraft markets. And while enjoying the boardwalk, you can bask in the balmy, warm weather and sea breeze that prevail all year.

And away from the beaches? Just a few blocks inland you’ll find attractive, tree-lined streets, parks, and homey neighborhoods, with fine dining, sidewalk cafes, and modern shopping malls. Here, in neighborhoods like Aldeota, you also have a wide set of residential choice from tasteful houses to bright condo towers with their clean, modern lines.

What’s more, the property deals are great. (By the way, if you're interested in islands, take a look at the beachfront property bargains I found on one Brazilian island.)

So as we relaxed in one of Fortaleza’s mouthwatering seafood restaurants and watched a lone sailboat passing by on the horizon, it occurred to me that this time, Ronan’s interests and mine coincided. Fortaleza is a great place to live, and to invest.

There have been great values in Fortaleza for a while now, but this year, I’ve seen a virtual frenzy in the pre-construction arena. From beach resort properties to downtown beachfront condos, buyers have been taking advantage of special deals offering low down payments (some for less than $900 at this time), favorable payment terms, and deep pre-construction discounts.

To give you a few examples, I saw a condo project directly on the beach downtown that sold out (pre-construction) in just a single day. I understand that a few IL readers were among the buyers. Then just south of town, I visited a project called Beach Place, which sold its 200 properties in less than 16 hours.

But I was most surprised when I attended the public kickoff of a downtown beach project called Beach Class Colonial. I’d read about these events before and, frankly, believed that the accounts were exaggerated…they sounded too dramatic to be real. That is, until I saw one for myself.

The invitation-only public release took place in the ballroom of the Marquise Hotel at 7 a.m., and was attended by almost 500 people, all real estate agents. Back in the U.S., the real estate market continued to tumble, housing starts were down, and the Dow was plunging. But even as the crisis became a worldwide event, this crowd of professionals was still obviously bullish on Fortaleza.

The developer hosted a large buffet breakfast for everyone. We then moved to the adjacent auditorium to see a brief seminar, where he then unleashed the attendees on the remaining units.

But what the participants of this event didn’t know was that International Living readers had already purchased almost one-third of the entire 300-unit inventory before the event began. They paid 15% less than the current opening price, and put less than $1,000 down. Obviously, 15% on the unit’s price is a huge increase for these readers in just a few weeks. And when considering that they had less than $1,000 of their own money in the deal, it was awesome.

I wasn’t sure if I should brag about this to the other attendees, or hide…

So the investment opportunity for IL insiders is terrific. But as I say, it’s secondary to me. What’s more important from my perspective is this: Fortaleza is an all-around fantastic place to live, retire, or own a second home. If I bought a property here that never appreciated a dime, I’d still be glad to be here as often as I could, and to be a part of this great city.

Lee Harrison
Roving Latin America Editor, International Living

Read related IL Postcards:

- Brazil Beachfront: A Beach House For $30,000

- Update: Fortaleza Is Still Booming

- How to Lock Down a $100,000 Brazilian Condo for $750

- Why Now Is the Time to Invest in Fortaleza…