BRAZIL AND THE REGION OF THE NORTH EAST
WHY BUY IN BRAZIL
While economic growth has slowed in the rest of Brazil, the Northeast region continues its ascent, thanks to the millions invested in wind farms and a thriving tourism industry. According to the Central Bank of Brazil, the Northeastern economy is growing at a rate of over 2% – much more than the rest of the country and of many other economies in the world.
DEVELOPMENT OF ECOTOURISM
Nel Nord-Est del Brasile l’ecoturismo è in costante e rapida ascesa. La regione ha il pieno sostegno di entrambi i governi nazionali e federali desiderosi di promuovere il territorio per incrementare l’ecoturismo e lo sviluppo immobiliare sostenibile. Secondo fonti autorevoli (Ecotourism Society) il turismo ecologico è una delle industrie con più rapida crescita al mondo e si sta espandendo ad un tasso di oltre il 20% all’anno.
TOURISM ALL THE YEAR
The Northeast of Brazil is the destination of more than 6 million foreign tourists a year, is also the most popular destination for most of the 60 million Brazilian tourists who spend their holidays in their own country. For Brazil, the tourism industry is in full development, studies predict a sharp increase in the next 20 years and the areas companies are already planning significant investment in new equipment to cope the new passengers. The warm and favorable climate with few temperature fluctuations during the year, attracts tourists and travelers from Europe, America and other parts of the world; accordingly the demand for tourist properties of high quality in is in constant ascent. It ‘easy to predict that residential properties located in high quality resort built with eco-compatible standards, will have a good value over time and the ability to generate a steady income.
INTERNATIONAL EVENTS – WORLD CUO 2014 OLYMPIC GAMES 2016
The Brazilian tourism industry has benefited from a huge boost after hosting the FIFA 2014 World Cup, and it is expected that there will be even more visitors during the 2016 Olympics to be held in Rio de Janeiro. The federal and local governments have invested more than 16.2 billion dollars for infrastructure improvements across the country before of the World Cup and a further $ 2.3 billion will spent for the Olympic Games. Events of this magnitude are helping to raise the international profile of Brazil, attracting foreign capital which will be invested in the country giving further development in various sectors and especially tourism.
INCREASE OF THE REAL ESTATE MARKET
In recent years there has been increasing demand for real estate both as regards the internal market and of the foreign one. The lowering of interest rates has increased the domestic demand by allowing more and more Brazilians to buy their own home. The natural consequence of the demand is a price increase that has undergone a steady growth in recent years. According to the Fipe-ZAP index, the property prices in Rio have risen more than 250 percent over the past six years and in nearby St. Paul they grew by 200%.
As a result, the real estate market that is developing is also supported by the banking system with new financial products made available also for foreign investors. The north-eastern region is also particularly interesting for the growing Brazilian middle class and for foreign buyers wishing to purchase a second home. Currently, there is still a good annual rate of the property value growth and is even more significant on land.
WHY THE DEVELOPMENT OF NORTHEAST OF BRAZIL
Although, seen in a macroeconomic perspective, the North-east region is still considered a poor region, is rapidly evolving, catching up on more developed South. There are three factors that are supporting this emerging market. First, the government social program Bolsa Familia, implemented in 2003, the program provided aid and cash assistance to about 12 million poor families on condition that their children attended school.
The large public investment, especially in infrastructure and the incentives provided by the federal government, through tax exemptions and subsidized credit, have boosted private investment especially foreigners. Multinationals such as Kraft Foods, ImBev, Novartis, Unilever and Fiat have stepped up their presence and opened new production plants in the area. This has helped to create jobs and reduce unemployment in the region. Finally, the Northeast region is supported by the wind energy sector, a flourishing industry with continuous investment of several million dollars in new equipment. According to data provided by the CEIC, Brazil’s economy is benefiting from foreign investment at a monthly average of US $ 4 billion.
In the past two years the Brazilian economy has undergone a real and stop with a large contraction in GDP, and also for the year 2016 is expected a further decline. Problems of political and social nature and the various scandals involving the country have created this situation, estimates, however, speak of a 2017 growth with an increase of 1,2 % of GDP where surely the Northeast will be the protagonist.
