Unlike many countries with emerging property markets, Brazil has the physical space and the abundant resources needed to achieve sustained growth in its real estate market.

So, whereas some countries labelled with the 'next big thing' tag fizzle and fade before the ink has dried, Brazil should be making positive headlines for the long haul.

Certainly, 2007 was a breakthrough year for Brazilian property, with development news from north-eastern Brazil filling plenty of column inches in the international property press, and the Brazilian oil and biofuel boom guaranteeing the South American giant coverage on the financial pages into this year and beyond.

In fact, land prices in northern Brazil are beginning to accelerate as the scramble to plant biofuels intensifies, so perhaps its no surprise that land in Brazil is being promoted as the next hot property.

In recent weeks both SPC Overseas and David Stanley Redfern have extolled the investment virtues of land for tourist property development, due to its generally lower entry level than bricks and mortar but higher returns.

The theory is that investment in land at the pre-building stage enables you to gain a portion of the profit, whether you choose to construct a home on your plot, or simply enjoy the financial returns from selling your land on at a later date. SPC Overseas report that "land prices in Natal are forecast to go up by 15 to 25 per cent per annum based on current market trends."

But not all land is equally valuable, and although Brazil - the world's fifth-largest country - has more than enough to go round, not all of it is worth sticking your stake in.

"There are lots of cheap plots available in Brazil, some in the middle of nowhere that are marketed as 'good investments'," cautions Anthony Fernandes of SPC Overseas. "Several of these plots are classed as rustic land (not buildable at present) and, accordingly, don't have utilities (power and water) and infrastructure (roads). Purchases in such land are high risk and purely speculative on the basis that one day they might get urbanised and the promoter might actually implement the infrastructure required. The actual cost of such land is dirt cheap, which is why the land is marketed cheaply by European standards, even with the very healthy margins build into the sales price."

With this in mind, choosing the right plot - with a clearly though-out exit strategy already in place - is paramount to investment success.

"All regions and locations in North-east Brazil are clearly not the same and nor is their investment potential," continues Fernandes. "Just because something is cheap doesn't mean it is a good investment or good value for money. It is a big risk to buy cheap land 'sight unseen' based on price alone, as the likelihood is it will always remain just that – cheap land."

So, how can you tell the difference? Well, investors in land with holiday property potential should look out for a location that is earmarked for extensive tourism development, with plots classified as 'urban land' and already sub-divided to ensure clean title deeds, and infrastructure works either already underway or soon to be started.

SPC Overseas has identified Muriu Beach Plots www.muriu-beach.com in Natal, Rio Grande del Norte, in north-eastern Brazil, as ticking all of the right boxes.

"It is still early days in Natal in terms of the market growth and securing quality land now at prices under the market value will put you in the best position to make significant gains when the second wave of investors enter the market and then those buying for personal use," says Fernandes.

Muriu Beach Plots are available from £23,500, and villas can be built on the land from £44,000.

In search of similar qualities, David Stanley Redfern has plumped for plots in Paraiba, Rio Grande del Norte's southern neighbour. The Oasis plots range in size from 350 square metres to 554 square metres and in price from £6,999, to £13,999. The Carapibus plots are all 1000 square metres and priced at £16, 829.

Both land plot developments have the option of having the developer build property at a cost of £700 to £750 per square metre. The properties waiting to be built on Carapibus are villas up to a size of 300 square metres which, by that guide, would cost £241,000.

But just remember: No matter how high your investment aspirations are soaring, it'll come to nothing unless you have a safe place to land.

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Article first published 14 February 2008