Big Names Boost Brazil's Property Market

Brazil is fast becoming one of the world’s property hotspots and projects from big names in the north east region will boost its reputation even further.

It was reported in papers such as the Telegraph this week that the very first ‘David Beckham World of Sport’ professional sporting complex will be launching at Cabo Sao Roque, near the city of Natal. Part of a luxury resort that’s being built, the complex will include a scholarship and training school for children, as well as facilities for visiting sports teams. It’s due to be completed in 2014, just in time for the FIFA World Cup in Brazil.

Also being created within the same development is the Rubens Barrichello Driving Experience. The project will include a Barrichello Racing Museum, as well as a four-wheel driving experience and go-karting for families and will offer a scholarship programmes for young Brazilians.

How does football link to property?

You could be forgiven for wondering how on earth these projects provide any relevance to property, but experts say they’re definitely linked.

“Although some people might think that a soccer academy offers a tenuous link to the property market, tourism and property investment are close cousins and each have a knock-on effect on the other,” commented Samantha Gore, sales and marketing director of Brazilian property specialists UV10. “The more people attracted to an area, the more buoyant the property market becomes, for they all need short-term accommodation. Just look at how Disneyland transformed Florida’s property market.”

Sporting events improve transport too

In addition, it’s important to keep in mind that major sporting events inevitably carry other benefits for an area too, not least in terms of transport. Local transport links and local facilities have to be improved if an influx of tourists and sporting professionals are to descend on an area - as has been witnessed many times in the past in areas where big events, such as the Olympics, have occurred - so this too will have a knock-on effect on property.

Beautiful Brazil bounces back

Brazil, the largest of the Latin American countries, used to attract fewer tourists than Austria and Ireland, but in recent years, its appeal for property investors has been soaring. One of the reasons is the abundance of beaches along the coastline and a fantastic climate - with an average of 27ºC all year round. Add to that the fact that luxury properties can be picked up for as little as £60,000 - or even less on some off plan developments - and you’ve got the perfect mix for canny investors.

The city of Natal has already received extensive investment input. Over $1.8 billion are being invested into new hotels and over 10 golf courses are being created. In 2009 a new airport - the largest in South America - will open. This northeast area of Brazil is already the most accessible from the UK, with flights taking about 11 hours and costing in the region of £290 - £500 return. If predictions are correct, property prices will grow as all the new developments come into fruition and Brazil really comes into its own.