Interest in overseas real estate investment is driven in large part by convenient access, and new access routes between the Middle East and Brazil is drawing attention to the South American region. Etihad, flagship commercial carrier for the United Arab Emirates, will now be providing direct flights between Abu Dhabi and Sao Paulo, and will help to further fuel an already growing interest for Middle Easterners living and working in Brazil. Brazil’s economy has been on the rise, and property there is looking more attractive than in less financially stable business hubs. For more on this continue reading the following article from Property Wire.
Brazilian real estate developers believe that new property investment opportunities will open up with new direct flights between Sao Paulo and the United Arab Emirates.
Abu Dhabi’s national flag carrier, Etihad, has announced that the flights, its first foray into Latin America, will begin in June 2013.
Commenting on the announcement of the new route, Brazil’s ambassador to the UAE said: We are witnessing significant growth in the bilateral relations between Brazil and the UAE and we are certain that Etihad Airways flights will create new opportunities for government, trade, tourism and cultural exchanges’.
Dean Thomas, managing director of DLT International, owners and developers of Palm Springs Natal, a land and condominium development in north east Brazil, believes that there will be an increase in the business and commercial relationship between the region and the Middle East.
‘Having been in business in Brazil for over six years, I have seen first hand how interest in Brazil from the Middle East has rise steadily,’ he said.
Indeed, three years ago UAE company DP World acquired a majority stake in Embraport, a new $500 million port terminal next to Porto de Santos, Brazil’s largest container terminal and earlier this year, Mubadala Development, a strategic investment company owned by the Abu Dhabi Government, struck a $2 billion deal with Brazil’s EBX Group who have interests in oil, gas and the gold sector amongst others.
‘The Dubai Department of Tourism and Commerce Marketing is said to be planning to open an office in Sao Paulo, Emirates Airline added Rio de Janeiro to its Brazilian destinations earlier this year and so I am not surprised to see that Ethiad has followed suit with their new route to Sao Paulo,’ explained Thomas.
‘Emirati’s are savvy investors, keen to capitalise on new opportunities and with its robust economy, wealth of natural resources and growing middle class, Brazil is ripe for investment,’ he added.
In addition to being the world’s sixth largest economy, having overtaken the UK in 2011, Brazil is regarded as one of the most attractive real estate markets. In the first quarter of this year it had the second highest annual house price growth at 23.5%, according to Knight Frank’s Global House Price Index.
The latest data from Global Property Guide echoes this strong position, reporting that Brazil has bucked most other global housing markets with prices in Sao Paulo climbing 18.7% year on year in the first quarter of 2012.
‘With the world in such a state of economic turmoil it’s difficult for today’s investor to know where to buy real estate however Brazil still retains the highly desired imbalance between supply and demand combined with affordable land prices and a domestically driven economy. Investors wherever they are in the world, especially the Middle East recognise this and are committing to projects such as Palm Springs Natal,’ added Thomas.
Already 50% sold with 70% of land plots bought by middle and upper class Brazilian buyers, the development has 453 plots in over 100 acres of prime beachfront land and just 20 minutes from the new international airport at Natal.
Essential infrastructure is already 60% complete with land plots available from £40,000 and SIPP approved investments from £10,000. Two and three bedroom luxury villas start at £150,000.
This article was republished with permission from Property Wire.