Indeed, with an annual influx of five million tourists, Brazil, the land of samba, carnival and caiparinhas also has the profile to pull off the trick of being one of the world's hottest emerging property markets. Robin Barrasford, of Barrasford and Bird Worldwide, certainly believes Brazil's time has come. "Investment in Brazil is now the order of the day and with entry-level prices for property at the same level Bulgaria was at a few years ago, investors are keen to take advantage."

One of the biggest current developments in Brazil for property investors to get their teeth into is Lagoa Do Coelho, situated near the city of Natal in the north-eastern state of Rio Grande del Norte. The property development  will comprise a total of 13,500 units, with apartments facing either the beach, a lake or golf course. The one-, two- and three-bedroom apartments are available through a number of agencies, with prices starting at approximately 73,000 euros (£49,600). Despite the sheer scale of the development, property agents have been quick to point out its green credentials. "Lagoa Do Coelho is an ecologically friendly resort which is being developed to be in harmony with the landscape," says Keith Grainger of Pinto International. Indeed, realising that natural beauty is Natal's major asset, the authorities are attempting to tread lightly, as Sarah Drane of GEM Estates explains: "Aesthetics and stability are of greater importance to the authorities here than squeezing every last penny out of every square metre." Thankfully, north-eastern Brazil also has the weather to go with its natural wealth: Temperatures in Natal average 27ºC per annum.

But, broadly speaking, Brazil's entire Atlantic coastline basks in a similar climate, so why is the north east being talked up at the apparent expense of other stretches of Brazil's beautiful, sand-fringed eastern edge? The key word here is 'expense', says Richard Nunn of Property Frontiers: "Rio de Janeiro and Sao Paolo are admittedly attractive areas. However, the property markets here are much more developed and therefore entry prices tend to be higher and percentage returns lower." This comparison, Barrasford points out, also applies if you compare north-eastern Brazil with other countries in the Americas. "With starting prices from £25,000 for a fully finished two-bedroom apartment in an established rental market and desirable holiday hotspot, we'd challenge anyone to find a market with so much potential in the rest of the Americas."

Besides Lagoa Do Coelho, Brazil's north east currently boasts several similarly priced opportunities. For city types, Barrasford and Bird Worldwide is currently marketing Vera Arruda, a development of 24 three-bedroom apartments and two penthouses in Maceio, the capital of Alagoas state. Prices start from £60,000 – and the beach is but 450 metres away. For beachcombers, one-bedroom apartments are available in the Porto dos Corais development, in Natal, from 46,800 euros (approximately £32,000), although Drane advises that buyers should be looking for "a minimum two bedrooms for the best investment and optimum rental possibilities." Villas are also available in phase two of the development, priced
approximately 130,000 euros and upwards.

Alternatively, should you wish to have a property in Brazil built to your own specifications, frontline beach plots in Maracajau are available through International Property Estates, priced at £35,000; build costs are estimated at £400–£500 per square metre. The company notes that the green light given to hotels and a golf course in the area make Maracajau an investment hotspot of note in north-eastern Brazil. And it's not just Maracajau that's enjoying this level of investment. "Money is pouring into these regions as the government actively encourages tourism and enhances the infrastructure to include new international airports," says Barrasford. "Organisations such as the Association of Real Estate and Tourism Development in the North-east (ADIT) have been specifically created to generate interest in property investment and tourism in the north east." Not that Brazil's north-eastern states are starting from scratch in respect of their holiday home markets, as Drane comments: "Between 2002 and 2005 the number of tourist arrivals for the state of Rio Grande do Norte increased by 134 per cent. Natal is currently developing more than ten golf courses and investing 1.8 billion US dollars into new hotels and resorts, which will push this figure even higher." This, as Drane adds, "will increase demand for property in Brazil and trigger natural price hikes."

So, how much of a hike are we talking about here? According to financial firm Morgan Stanley, double digit per annum returns are expected in Brazil's property market over the next five years. But, cautions Nunn: "Brazil is still too insecure a property market to invest your total wealth, hence portfolio diversification is advisable." While we're looking for the cloud parked behind the silver lining, isn't Brazil a little too far afield for British property buyers? Drane is quick to rubbish this notion: "It's not as far as you think. Natal is the closest part of Latin America to Europe, thus drastically cutting down flying times to between seven and nine hours from most European cities. At just three hours behind GMT, jet lag shouldn't rear its ugly head."

And for those with an eye on the Brazil buy to let property sector, Drane offers the following encouragement: "There is a vast internal market to cater to and also the US market on the doorstep. And bear in mind that there are one million resident multi-millionaires in Brazil, who spend some of their wealth on domestic holidays!" With this in mind, isn't it tempting to star in your own property picture in north-eastern Brazil?

For further information about property in Brazil:
Property Frontiers
Barrasford & Bird Worldwide
GEM Estates

Brazil property buyer's guide
It is necessary to obtain a CPF (Cadastro das Pessoas Físicas) number, a personal ID number which allows utilities and bank accounts to be registered. There is a fee.
The Brazilian government advises overseas buyers to appoint an imobiliárias who is a member of Conselho Regional de Corretore Imobiliários – the Regional Council of Property Managers.
All properties built or administered after 31st December 1973 have a document called a Matrícula. This contains a detailed description and historical records of all legal, judicial and financial transactions pertaining to the property, as well as a description of the property itself, its address and location, past and present owner information and outstanding mortgages.
It is advisable to employ an agent, translator or lawyer who is well-versed in the legalities of the local property market, even though much of the process is dealt with by a cartório (notary office). All contracts are in Portuguese and English, with a written and binding guarantee of full title.
Deposits usually stand at 10 per cent, but can range from 5 to 20 per cent depending on the property. Payment can thereafter be made in instalments or in a lump sum on delivery. Bear in mind that interest rates are high and there may be a currency risk.

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Article published on 17 May 2007