Brazil, along with Russia, India and China, will dominate the world’s economy by the year 2050*…

This is great news for inverstors taking the long view of Brazil’s investment potential. 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.

Natal the ‘number one beach destination’ in Brazil

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.”

‘Most unspoilt environment on the planet’

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 to promote the north east region of Brazil to foreign investors.

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”.

‘Tourist magnet’ and ‘property hotspot’

Mr Worboys concluded: “The closest city in Brazil to Europe and the US - not only is Natal 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 Natal visit the following website:  www.experience-brazil.co.uk

*Goldman Sachs