Huge property investment potential in Natal/Rio grande do Norte

mike — Mon, 28 Apr 2008 18:31:57 GMT

This should give investors a good idea of what is currently happening in the North-East of brazil and specifically Natal

Emerging vs Established Real Estate

As with all emerging markets, the earlier you invest,
the greater your profit potential. Defining moments
and timing are always the catalyst for any real estate
opportunity and when investing in an emerging market,
timing is of even greater importance. If one picks the
right time to invest in an emerging market, there can
be significant capital growth. Pick the wrong time,
however, and you may be taking on all the risk in
return for little of the reward.

An example of “wrong timing” would be to buy in an
area that is not receiving investments nor is tourism
increasing. Prices might be very low, but on the other
hand the risk is very big and potential gains might
never materialize or it might take a very long time. A
good example of this would parts of Africa. Another
example of “wrong timing” would be to invest in an
area where prices are flattening out and the market
will slowly turn into a more established market.

An example of “good timing” would be to buy in an area
where tourism has been growing for some time but the
property market is still in its very early stages. For
professional property investors who want to maximize
capital growth while minimizing risk, this is the best
time to invest since property prices are extremely low
in comparison to what they are expected to be and at
the same time there are strong signs that the area
will become even more popular. The property market in
Natal is now in that stage and offers investors an
unique chance to get in early and benefit from several
years of growth.

The property market in Natal is in its infancy stage.
The coastline around Natal is development free and in the
last few years most of the land has been sold to
developers and is now ready to be built upon. Most of
the infrastructure has yet to come into place. As
such, prices are still relatively low.

Once the developments start taking place and more
infrastructure comes in, prices are expected to rise
rapidly. The property market is tipped to grow at a

phenomenal rate as international tourism is growing
fast while at the same time the huge Brazilian
domestic economy is fast improving.

In the next five years, investments in new hotels,
golf courses, resorts and condos should exceed R$ 4
billion (about US$ 1.8 billion) on the coastline of
Natal, the equivalent to 8% of all foreigner
investments that the entire Brazilian economy received
last year. The area is set to become one of the most
popular tropical destinations for Europeans, and
recently the Americans have opened their eyes for this
area as well.

Due to the booming tourism and enormous potential for
further growth, the government has decided to build a
new airport in Natal which will be the biggest airport
in South America (will be 8th biggest in the world)
and is due to be built in the next 5years. This will further
confirm Natal´s position as the number 1 tourist
location in Brazil. In addition, a massive new bridge
opened just last year, makesfor quick and easy to access from
the centre of Natal to the beaches on the Northern
Coast.

The coastline around Natal bares many similarities to
how the Spanish Costa del Sol was 30 years ago. Once
charter tourists started arriving in Spain and became
aware of the lifestyle the area offered, the area
started to change and consequently the price level as
well. Today Costa del Sol is the leading tourist
destination in Europe and the general price level
reflects this as well.

It stands to reason that buying early – at a time when
the property market is still in its infancy and prices
are as cheap as they will ever be – promises to yield
the greatest possible capital growth. The property
market in Natal is still in the very early stage, and
that is exactly what makes it so profitable for
investors who get early in on the act.

Experienced overseas property investors know that the
opening of a new airport is a sure-fire sign of
success. It has a two-fold effect – it

helps to handle the existing demand from people coming
in and, of

greater significance, it also has a trigger effect to
bring more people into

the area. The already existing international airport
in Natal and the future airport which will be the
biggest airport in South America and eight biggest in
the world, are good signs of future success of the
area.

Investors in the Northeast of Brazil can acquire
beautiful properties in stunning surroundings, at
prices simply unobtainable in most other destinations.
For investors buying for a pure investment, as well as
for those who want to buy a dream property in a
stunning location for an extremely attractive price,
Natal offers an excellent opportunity to buy at
extremely low prices that will never be seen again

Please contact me for more information if you are seriously interested in investment opportunities here in Natal
Mike smith
brazbeachhouse.com
Man on the ground in Natal with the lowdown on real estate

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Huge property investment potential in Natal/Rio grande do Norte