Northeast Brazil has featured on the property investment radar for a while, but never before has the case to invest there been quite so compelling. One state in particular stands out among the nine that make up the region – Ceará, the sunniest and the closest to Europe. Read on to discover eight reasons why you should invest in Ceará this year.
Against a backdrop of a general improvement in the Brazilian economy, Ceará is currently registering some of the best figures in the country. Latest GDP growth figures show the state performing ahead. Those for Q1 this year came in at 1.5%. Figures for four quarters were even more impressive. GDP in Ceará grew by 2.67% while the Brazilian economy went up by just 1.3%.
April was an excellent month for employment in Ceará. The state created over 50% of all jobs in Northeast Brazil and registered the 8th highest rise in employment in the country.
Another reason to invest in Ceará in 2018 comes in its tourist industry. The state welcomed the Air France- KLM- Gol flight hub in May this year bringing a substantial increase in direct connections from Fortaleza International Airport. Destinations have increased both worldwide and within Brazil. Ceará will have 47 direct international routes a week by the end of this year (up from just 14) as well as numerous domestic flights to the largest airports in Brazil.
The new flight hub has already boosted the area’s tourism industry – visitor figures rose by 11% in the year to July. In the same month, income from tourism went up by 14.3% to top R$1 billion. The number of airport passengers increased by 12.5%.
Northeast Brazil regularly features as the country’s favourite holiday destination, a major factor in property investment potential. And within Northeast Brazil, Ceará stands out yet again. The region’s beaches were the second most sought-after place for a holiday in July on both the CVC (the largest tour operator in Latin America) and Skyscanner portals.
Mundau beach near Trairi, north of Fortaleza, was a top beach for honeymooners in Brazil on the Kayak portal in April. While nearby Flecheiras beach was voted the best place to enjoy a quiet holiday away from the hustle and bustle of the city by the Diario do Nordeste broadsheet in the same month.
Key to successful property investment is the timing of your entry into the market. The Association of Foreign Real Estate Investors (AFIRE, whose members have an estimated US$2 trillion in real estate assets under management globally) picked Brazil as the best emerging market in the world in their 2018 survey.
And within Brazil, Ceará is fast emerging as a top destination. Recent development activity on the coastline north of Fortaleza includes the Hard Rock Hotel, currently being built at Lagoinha, and Nova Atlantis in Itapipoca. They join The Coral, a 5-star beach resort, being developed by the BRIC Group. This boom in interest in the northern stretch of the coastline has sparked media interest. Yet another compelling reason to invest in Ceará.
The Ceará coast also represents an excellent opportunity for capital appreciation. Within the wider context of good potential in Brazil as a whole – AFIRE members voted Brazil as the second-best place in the world for returns – Ceará stands out as a profit hot spot.
The Live and Invest Overseas Top 10 Property Investment Destinations 2018 highlighted the coastline as a honey pot for two reasons: low-entry prices – the publication said “lot prices are a global bargain”; and rental return. According to Live and Invest Overseas, “rentals targeting the local holiday market can earn better than 8% net yield reliably.”
Strong holiday let market
Holiday rentals are a relatively young phenomena in Brazil where the majority of holidaymakers chose hotels as their accommodation option. However, in recent years, holiday lets have stormed onto the market, particularly via platforms such as Airbnb.
Ceará has seen particularly strong increases in the number of holiday rentals. During the 2018 Carnival period, the capital of the state, Fortaleza, registered a 60% rise in rental income from Airbnb holiday accommodation in the year. This was the fourth highest in the country making holiday lets another strong option to invest in Ceará.
More for less
Another reason to invest in Ceará in 2018 comes in the state’s low-entry property prices. High-end homes cost considerably less here than they do in other Brazilian cities and far below what you’d pay for a comparable property in a similar location elsewhere in the world. For example, The Coral resort with a prime beachfront location has plots available from just US$40,500. The purchase of a plot and luxury villa starts at around US$168,703.
Another key to successful property investment is timing your purchase. 2018 is proving to be Ceará’s year – the new flight hub is already making a difference. And the market for second home is also seeing a boom. According to analysts, the hub has made a huge impact on investor outlook with big interest in the market for holiday homes. Everything points to now as the perfect timing to invest in Ceará.