Brazil’s north east is catching up with its more prosperous southern counterpart. Northeast Brazil has been Brazil’s economic superstar over the last decade. The region’s GDP between 2000 and 2010 was an average 4.2% per annum, higher growth than in the rest of the country. There are a number of factors that has fuelled interest in this area of Brazil.
Location, Location, Location
Buoyed by stronger economic growth than the rest of the country, Brazil’s Northeast region is growing in popularity as a holiday and second home destination due to the regions breathtaking, white-sand beaches, its blue-green Atlantic waters and an average year-round temperature of 25 degrees. The area is increasingly popular for wealthy Brazilians to visit on holiday as it boasts the best beaches in the country. As a result, real estate demand, particularly for luxury properties, is increasing.
Improved Tourism Infrastructure
Brazil welcomes two global events in the next two years, the FIFA World Cup in 2014 and the Olympics in 2016. Due to this, the country has poured money into improving tourism infrastructure, particularly in and around the stadiums. The Northeast has not escaped attention in this area. The government is expanding the Atlantic coastal highway in the Northeast and the port of Suape is being expanded.
Cheaper Property than Other Regions
Another reason second homebuyers from the south and central Brazil, as well as foreign investors, have turned their attention to the area is because property is considerably cheaper than homes near to Sao Paulo or Rio de Janiero.
The region’s newfound buying power is attracting larger firms. Kraft Foods opened its first factory in the area. Sudene, a government regional-development agency, has financed 52 malls in the Northeast since 2006 and a Fiat car factory is currently under construction in the area. “Right now, the north-east is one big building site,” the federal integration minister Fernando Bezerra Coelho said.
Source: Global Property Guide