Invest in Brazil … are you nuts?

Well no, actually. In 2003, Goldman Sachs selected Brazil, along with Russia, India and China, as one of the four “BRICs”—the developing countries that would share dominance of the world economy by 2050.

Its growth potential should come as little surprise when you consider that the country produces its own oil along with half the world’s exports of ethanol (a valuable additive to motor fuel). It already has the ninth largest economy in the world in terms of purchasing power and is on the verge of becoming one of the leading recipients of foreign direct investment (FDI) in Latin America (OECD).

Along with a blossoming economy (the largest in Latin America), the fifth largest country in the world is also benefiting from a dramatic expansion of tourism-related real estate investment. Until relatively recently local banks had not been offering large-scale lending to customers but with the stabilisation of Brazil’s economy they have seen the opportunity for investment. In 2006 property lending doubled in Brazil and the construction industry is booming.

Eight million more homes are needed throughout Brazil, but it’s not just the domestic market that needs to be catered for. Brazil’s tourism sector is rocketing as the country’s many blessings are being counted by an increasing number of visitors to the country. A 134% increase in tourist numbers occurred between 2002 and 2005 and the government – which is keen to see this expansion continue to a high of 9 million annually – is investing heavily in the tourism industry and improving the country’s infrastructure.

The majority of this investment is taking place on the north east coast and in particular in and around the city of Natal, in the state of Rio Grande do Norte. Natal is the safest city in Brazil which bodes well for investors and adds to its tourist appeal. It also benefits from a year round tropical climate, stunning beaches and an international airport which, once completed, will be the fifth largest in the world able to accommodate 5 million passengers per annum.

Steve Worboys, MD of Experience International, comments, "Enjoying the best weather in Brazil and sunshine for most of the 365 days of the year, Natal is established as the number one beach destination for tourism in Brazil. Significant government advertising spend focused on tourism has seen an influx of major tour operators and record numbers of international tourists to the region.”

Experience International recently attended the ADIT NORDESTE conference in Salvador, Brazil. ADIT NORDESTE (Association for Real Estate and Tourism Development in the North East) was set up in June 2006 by 40 renowned national and international companies in the fields of tourism and real estate (including the Brazilian Ministry of Tourism) to promote the north east region of Brazil to foreign investors. These companies have projects of various sizes in the fields of tourism and real estate in general amounting to over £1 billion.

One of the aims of the project is to boost the confidence of investors and real estate buyers. The companies that form the association are guaranteeing the legal security of the enterprises, including environmental and ecological zoning. And the area is worth preserving. According to NASA it has the second purest air in the world and along with Antarctica has “the most unspoilt environment on the planet”.

Paradise found

It is in this unspoilt environment, the biggest ecological sanctuary in the state of Rio Grande do Norte, just 80km south of Natal and one hour from Natal International Airport, that buyers will find the old village of Pipa. This “Brazilian Bali” as it is known, has one of the best bathing beaches in the world – Praia d’Amor (Lover’s Beach) - and a world class site for surfing, with waves all year round at one end of the bay and at the other, natural pools filled with warm water – perfect for couples and families.

Home to dolphins, turtles and tree monkeys, it has 300 days of sunshine a year, an average temperature of between 27-35°C and water temperature of 25°C. Whilst preserving its natural beauty, the village also provides plenty of amenities to keep visitors entertained, with plenty of bars, shops, restaurants and nightclubs, as well as more active pursuits, such as horse riding, canoeing and motorcross.

Experience International is offering investors the chance to invest in this tropical paradise. A fabulously designed new development is being built on a prime beach front location overlooking the Praia d’Amor in Pipa with some of the most spectacular sea views available anywhere in the world.

The Pipa Paradise complex is made of two distinct gated communities, one containing villas, the other apartments. There are 128 luxury 3 bedroom (70m2) apartments available from just £55,126 / €81,543 and 50 3 bedroom villas (145m2) from £120,525 / €178,278. All units are being built to 4 Star specifications and include a balcony with beautiful sea, pool or garden views. The complex facilities include swimming pools, a spa and fitness centre, open air restaurant and 24 hour security.

Pipa Paradise is a compelling proposition for sun seekers and investors alike looking to invest in a foreign property. It offers buyers a fantastic opportunity to maximize investment, not only receiving regular rental income from domestic and overseas holiday makers, but also significant capital appreciation

Steve Worboys comments, “The closest city in Brazil to Europe and the US - not only is Natal and nearby Pipa a tourist magnet, it is also a property hotspot. This already hugely successful tourist destination guarantees all year round rental potential (net Rental Yields of 10% are expected) with Brazilian tourists dominating the European winter season (November – April) and European tourists throughout Europe’s summer (May – October)."

Budget airlines such as Thompson Fly are already flying the 8½ hours from the UK to Natal, with tickets selling at between £180 - £400 return.

Sunshine, natural beauty and amazing hospitality have transformed Brazil’s north eastern region into one of the most sought after tourist spots on earth and an opportunity to invest in this fast growing area should not be missed.

For more information about Pipa Paradise, visit experience-brazil.co.uk.