Opportunity in Brazil with Huge Profit Potential

A new world-class port is being built in the city of Pecém in northeast Brazil, and is set to become a major integrated-manufacturing hub, reports InternationalLiving.com. This project is already in the works and billions of dollars are being invested.

Inputs like oil derivatives, steel, and electricity will be made onsite. There will be new manufacturers along with some consolidation from other locations in the region. Four enormous conveyor belts will run for seven-and-a-half miles through the facility.

This project will bring tens of thousands of professionals to the area, and they will all need somewhere to live.

“This is a classic ‘new-middle-class’ story, where a surge in demand for upper-middle-class housing is going to be created. And it stands to reason that prices will likely rise, as well,” says Ronan McMahon, InternationalLiving.com’s property expert.

“You can get in at the ground floor by buying a lot in a community these folks will want to build their home in. You could get in with prices from 57,500 reais ($25,800), with $2,705 down and monthly payments of $300. And maybe in three-to-five years’ time you could sell your lot for double,” McMahon says.

Even though the influx of business executives and managers will be working in the city, McMahon recommends you buy property in charming nearby beach towns, where these business people might prefer to live: “I don’t recommend Pecém as your beach-side retreat. You’ll find better options for that, such as the beach town of Cumbuco, 10 minutes away. But this is a strong opportunity. Demand to buy or rent real estate is set to soar. And I expect prices will follow.”

The major government program is just the type of “path-of-progress” situation McMahon looks for. It will transform this sleepy backwater into an industrial powerhouse. New road and rail routes, and plans for a major airport, converge here.

For decades Brazil was known as “the country of the future.” Today it has arrived. Brazil is the world’s sixth-biggest economy, having recently overtaken the United Kingdom. Brazil will host the 2014 soccer World Cup and the 2016 summer Olympic Games. It’s the world’s biggest food exporter. And it’s a world leader in renewables and awash with oil.

Brazil has a strong manufacturing sector of planes, trains, and automobiles. And it’s selling not just to the stagnant developed world but to fast-growing China and Africa.

Historically, Brazil’s northeast—where you’ll find Pecém—was its poorest region. But over the past 15 years it’s been playing catch-up. Its economy has been growing at a faster pace than the rest of Brazil.

Pecém is 40 minutes west of Fortaleza, the biggest city in northeast Brazil. Thanks to miles and miles of beaches, Fortaleza is the biggest domestic tourism destination. Fortaleza is a modern city with all the amenities businesses and tourists need. Fortaleza is also the region’s industrial and manufacturing powerhouse. Manufacturing industries and port activities will move from Fortaleza and surrounds to Pecém’s new industrial zone. And new manufacturers will locate here from across Brazil.

Pecém’s Zone for Processing of Exports (ZPE) was announced in May 2010. This is a duty-free zone established next to the port of Pecém, 40 minutes west of Fortaleza and 10 minutes from the beach town of Cumbuco. The scale is massive; the zone is more than 10,500 acres.

Businesses located within this area will pay practically no taxes on inputs purchased…and on finished goods exported. There will also be less bureaucracy and customs procedures for its exporters. The ZPE will have its own customs office. It will also have its own cargo airport (talk on the ground is that the cargo airport will be expanded to include a major international passenger element) and the world-class port is getting a major upgrade.

Pecém port had already been slated for a multi-billion-dollar investment. The ZPE announcement means that an additional 200 export-oriented companies are expected to set up extensive operations here.

The full report on the project in Pecém and more about the opportunities to buy real estate in the area, which appeared in the August edition of International Living magazine, can be read here: How to Make Money from Real Estate in Brazil.

Editor’s Note: Members of the media have full permission to reproduce the article linked above, once credit is given to InternationalLiving.com.

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About International Living

For more than 30 years, InternationalLiving.com has been the leading authority for anyone looking for global retirement or relocation opportunities. Through its monthly magazine and related e-letters, extensive website, podcasts, online bookstore, and events held around the world, InternationalLiving.com provides information and services to help its readers live better, travel farther, have more fun, save more money, and find better business opportunities when they expand their world beyond their own shores. InternationalLiving.com has more than 200 correspondents traveling the globe, investigating the best opportunities for travel, retirement, real estate, and investment.


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