The property market boom in the Southern Coastal Area of Paraiba

There is a continuous growth in the real estate market in the coastal area of Northeast, due to the increase of public tourism investments and the beauties and wonderfullness of Brazilian beaches. Actually, the risk of investment in tourism and coastal land approaches to zero in the Brazilian case. On the contrary, land prices on coastal areas are appreciating quickly, giving about fifty per cent money profit a year.

The moment for investment is very important regarding land portfolios. As the boom for coastal land is rising now, this is the right time to invest. There is no possibility for your investment to run in risk as there is no way that coastal land prices go down in the near future. The growth of your capital will be secured if you decide for a right investment in the coastal areas of Northeast.

But it is important to be supported by a good financial adviser if you are going to invest in land in the present days in Brazil. So please do not run crazily. Have the best financial advise that you can even if this costs you a bit of money initially. Not all investments promisse good returns as always happens with any type of capital. The way to decide is looking for an expect in the area who can advise you of the best opportunities to pursue.

Some advises may help you to start your hungry of invetment in Brazil. First look for areas where there is public investment in infrastructure and tourism. That means to say that new coastal lands where the Government is developping new physical and economic projects are the best. Second, look for areas where the problems of security are the least. As you know, this is an important aspect of Brazilian beaches nowadays. Security must count as an important aspect of your investment choice. Third, look for areas where the prices are not yet too high. In Paraíba, for example, compare the areas of Praia Bela beaches with prices in the clouds and Pitimbu beaches with very low prices at the moment. Pitimbu of course is the best choice for a profitable investment or garanteed return.

Thinking of the way the property market behaves it is very important. Of course, prices in certain areas of Northeast as the beaches of Tamandaré, Porto de Galinhas, Maragoggi and Muro Alto have no more heaven to enter. But prices in the coastal areas of Pitimbu, Acau and Conde are still low to allow increase in capital returns quicly. So be careful on deciding about your first choices of investment.

Another aspect to be taken into account seriously is to think of environmental questions relating to building and tourism attraction. Brazilian environmental Institutions are very serious now in regard of building in areas with environmental problems with mangroves vegetation and coastal natural lakes of any kind.

International tourism attraction is something also that has to be taken into account. Beaches, where big international Resorts have been built, have their prices easily rising. This means to say that infrastructure connecting these areas to the big regional economic centers is something very important to influence in your investment choice.

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 ready by June 2009. This will further confirm Natal´s position as the number 1 tourist location in Brazil. In addition, a large bridge is being built for making 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.

The case of the Paraiba coastal area is exactly a case of future potential profit as the real estate market is starting and tourism investments are increasing rapadly. This is one of the places where the government is privilegging in terms of investments in the turistic industry. New roads are being constructed, new hotel complexes are been installed and market oriented propaganda is increasing constantly.