Credit crunch gets lost in translation for Brazil

For Brazil the credit crunch may just as well be the fabled breakfast cereal. Whilst the London stock market shrank by 1.5% during 2007, its São Paulo counterpart expanded by 93% due to a flood of foreign investment, a sizeable chunk of which went into real estate. Even Goldman Sachs has had to admit that they got it ‘wrong’. When BRICs was coined back in 2001 it predicted the four would account for 10% of GDP by 2010. In 2008 they’ve already passed 15%.

Samantha Gore, Head of Sales and Marketing for Brazil experts www.uv10.com comments, “The Brazilian property market, whose star performer is the northeast region of Rio Grande do Norte, is still managing to post annual appreciation of up to 25% as demand is coming from two powerful camps – a domestic market keen to own property and international clients, many from the US and Asia Pacific region, wanting to share in a blossoming economy. Couple this with some serious homegrown wealth, Brazil’s dollar millionaires grew by 19.1% over the last year alone, many of whom prefer to holiday in their own country, and this makes for an aggressive and sustainable real estate environment with unmatched rental and resale potential.”

With this surge in outside interest and spare cash swilling around, Brazil’s aviation industry is bulking-up to satiate a fast-growing appetite for travel. Since the 1990s international passenger traffic has doubled and Brazil’s domestic traffic is up by 77% in the past decade alone. With 31% of all Latin America’s GDP and strong tourism development from the Americas and Europe in particular, Airbus has predicted that Brazilian airlines will need an eye-watering 330 more passenger aircraft above 100 seats over the next 20 years to meet demand. And, never one to miss a good money-spinner, Mr Branson has entered talks to start a ‘Virgin Brazil’ saying, “Brazil is a very dynamic market and we haven’t paid enough attention to it… we know there is a lot of room to grow given the country’s size.”

It’s certainly time to venture where Branson has but the credit crunch hasn’t, before property prices take to the skies along with those planes…

www.uv10.com is promoting the luxurious frontline beach development of Jacuma Villas, a swift 27km drive north of the city of Natal. Characterised by coral sandy beach in a sheltered bay, Jacuma has long been popular with Natal’s elite as a spot for building sumptuous summer residences and as construction commences on Natal’s new international airport, a mere 15 minute drive, its attraction to foreign investors is growing.

With a choice of two or three en-suite double bedrooms giving either 111m² or 180m² of living space, Jacuma Villas are loaded with extras such as double-height lounge / dining areas, sustainable ipê hardwood ceilings, two large upstairs verandahs, downstairs terracing for al-fresco dining plus private car port and storage rooms. All homes are delivered with mature tropical gardens and automatic irrigation systems.

For a petite project, the facilities are generous and include a large swimming and relaxation pool, sundeck, sauna, barbecue area and a games and television room. Tennis and a putting green are adjacent to the project whilst five golf courses are planned for the local area. To complete the picture Jacuma Villas has its own beach bar and café set straight on the sand.

Prices start from a below market value £98,000 and on-site administration will rent the properties on your behalf. Completion is expected for the third quarter of 2008 in good time for Brazil’s next summer season.

For more information, visit uv10.com