Brazil’s star just keeps on shining with 71% increase in booking enquiries reported
Brazil’s status as one of the hottest emerging markets in the world today remains high with a 71% increase in booking enquiries reported by leading holiday rental site, HomeAway.co.uk.
Over the past year, whilst many nations have suffered in the economic downturn and fallen by the wayside, Brazil has gone from strength to strength with HomeAway.co.uk reporting a significant increase in both the supply of and demand for accommodation with a 33% increase in property listings (nearly double the site average) and 71% increase in booking enquiries during Q2 2010.
Steven Worboys, MD of Brazil property experts, Experience International, comments,
“We at Experience International have also seen a marked increase this year in the number of people, both British and international investors, looking to purchase in Brazil. Over 1 in 10 enquiries are for Brazil, more specifically the north east. There are many more opportunities coming to market now however it is essential that buyers select the right property investment, those with the correct licenses, title deeds and planning permissions in place.”
Confidence in the Brazilian leisure and real estate market has grown in line with positive economic performance. As Vince Cable, UK Secretary of State for Business remarked on a recent visit to Brazil, “The centre of gravity of the world economy is moving, and Brazil is at the heart of that.” The latest IMF World Economic Outlook report forecasts GDP growth of 7.5% for 2010, more optimistic than Brazil’s Central Bank at 7.3% but considerably higher than the global average of 4.8%.
The real estate industry is one sector experiencing noteworthy growth; worth $17 billion in 2004, it is now estimated to be worth $34 billion today according to the Brazilian Chamber of Construction Industry (CBIC). Fuelling this growth is both the massive demand from the domestic sector for affordable housing, current estimates state a 8 million unit shortfall, and the rising numbers of international tourists visiting Brazil and requiring quality accommodation.
At present there are very few global hotel brands within Brazil and none within the designated World Cup 2014 cities such as Natal and Fortaleza. As indicated from the HomeAway.co.uk data, demand is already present and with tourism rising steadily (7 million visitors expected in 2010 rising to 9 million by 2014) there is huge opportunity for real estate investment.
Purchasing land for development has become an attractive investment option as it allows buyers to enter the market at a lucrative, early stage for maximum returns. Once such opportunity is the Tambaba Country Club Resort located near the historic city of Joao Pessoa in the north eastern state of Paraiba.
Covering some 150 hectares of prime tropical paradise, the Tambaba Resort is based on the highly successful European Centre Parcs concept with a wealth of on-site amenities including aquatic water park, restaurants, sports facilities, nature trails, craft centres and even a cachaca production area!