Jim O'Neil, Head of Economic Research for Goldman Sachs, has predicted that the Brazilian economy will be one of the largest in the world by 2050. In addition, four countries which he calls BRICs (standing for Brazil, Russia India and China) are expected to experience their peak growth during the next decade.

Global investment bank, the Lehman Brothers, has predicted that this growth will have a dramatic effect on the Brazilian property market: "Currently, prices for desirable properties across the country are artificially low, and this gives an investor a chance to buy in now and profit well in the short term or hold for long term appreciation and/or income generation. We're truly hot on Brazil right now for the above highlighted reasons, and we would recommend Brazilian property assets by held as part of a diverse portfolio of assets."

GEM Estates believes that the best Brazilian property investments can be found on the north east coastline, particularly around Natal. The city is set to receive 1.8 billion dollars of investment in the near future, as well as hosting a brand new airport – the eighth biggest in the world - which will open in June 2009.

One Brit who has bought in this area is Tom McAvoy. He and his girlfriend Claire now own a house and an apartment in the vicinity of Natal, both of which they purchased through SPC Overseas Properties.

"When we bought the house two months ago, we paid 98,000 euros," says Tom. "The market price is now 115,000 euros. The apartment, which cost us 52,000 euros, has also increased in value. "At the moment, we're planning purely to 'churn and burn' – once the developments have been finished, we'll be selling them. But I would consider buying a permanent Brazilian property sometime in the future."

If you fancy following in Tom and Claire's footsteps, GEM Estates are marketing the Porto dos Corais development, close to Natal and only 150 metres from the beach. Propert prices start at 800 euros per square metre for a fully furnished unit.

Those who are as concerned with luxury as with investment return on their Brazilian property should head to the Ma Noa  Park development in Rio Grande do Norte. The International Property Estates development will consist of a selection of apartments, townhouses and villas surrounded by swimming pools and close to both the beach and a golf course. Features include 24-hour security, pubs, restaurants and shops, tennis courts, water sports, horse riding and a football field. Prices range from 49,900 euros for a one-bedroom apartment to 669,000 euros for a four-bedroom detached villa with a private swimming pool and garden.

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Article first published 07 June 2007