Strong Rental Market for Beachfront Developments Near Fortaleza

A strong economy and thriving tourism sector are creating ideal conditions for rental properties along the Ceará coast in northeast Brazil, particularly in and around Fortaleza and the expanding port development in Pecém. International real estate expert Ronan McMahon says, "Fortaleza is the best beachfront buy on the planet right now." With one of the best-performing economies in Brazil, and some of best valued Brazil real estate, Ceará is benefitting from a growing middle class along with large-scale investment by the federal government.

McMahon notes the supply shortage of short-term rentals. Ceará is Brazil's biggest domestic tourism destination. With hundreds of kilometers of beautiful beaches and pleasant climate throughout the year, this northeastern state is becoming quite popular with international tourists as well. In addition to vacationers, Ceará's beachfront properties are seeing increasing numbers of business travelers and expatriate workers on short work assignments.

Local property expert Jamie MacDonald-Murray of MDMY Investment says the long-term rental market is thriving as well, especially in corridor between Fortaleza and Pecém. With the Pecém port undergoing a multibillion dollar expansion, the area is seeing an influx of workers at every economic level. MacDonald-Murray comments, "We see particularly good opportunities for middle-income developments as well as beachfront developments between Pecém and Fortaleza. Quality middle-income housing is in short supply. We are also seeing large numbers of foreign workers on extended assignments who are able to pay healthy rents at premium properties like our Cumbuco Beach Sun development."

At Pecém, the port expansion has committed investments of over US$20 billion during the next five years, including new power facilities, a Petrobras oil refinery, and an international steel venture involving Vale and two Korean steel producers. The Pecém development is already providing a huge boost to the local economy and job market.

The beachfront areas are also benefitting from enhanced tourism infrastructure spending ahead of the 2014 World Cup and 2016 Olympics. Brazil's government has committed US$5.7 billion to the area around Fortaleza in preparation for the World Cup, with much of these funds directed to improving transportation infrastructure. With the government working actively to improve the accessibility and quality of beach areas, property values are sure to climb significantly.

For example, in Morro Branco, a small beach community south of Fortaleza, US$60 million will be spent to upgrade the roads. Local property owners will be the beneficiaries. MDMY's MacDonald-Murray is pleased with the government's plans. "Just as with our Cumbuco development, our Regatas de Morro Branco beach condominiums are gaining value due to government investment initiatives. Even better, these investments are committed, and will occur regardless of what happens in the global economy. Those interested in Brazil investment should take a long look at Ceará."