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Property in Natal 'doubled in value ahead of World Cup'

Date added: 12th November, 2010 at 13:55
(view all articles from November, 2010)

Categories: Property News, Natal, World Cup 2014

One property in Natal is now worth twice the amount is was when it was purchased in 2006, as the city is home to one of the 12 stadiums that will be hosting the 2014 World Cup.

Speaking to the New York Times's Nick Foster, Dutch teacher Julia Bakker said she paid $60,000 (£37,469) for a bungalow near the city four years ago.

However, she was recently contacted with an offer of $123,900 for the property, which she turned down.

"You can imagine how surprised I was to be offered R$220,000 for the house by someone who got my phone number from a neighbour," Ms Bakker remarked.

"In dollar terms, in four years it has doubled in value."

According to Mr Foster, the economy in the north-east of Brazil, where Natal is located, has boomed since the World Cup was announced, having already been lifted by the country's recent growth.

Ms Bakker's house is located in the resort of Pipa, 53 miles south of Natal, where the journalist stated many northern European investors bought real estate four of five years ago.

Indeed, the writer explained an "unprecedented" amount of direct investment in Brazil from overseas, alongside high interest rates, has driven the real higher against its counterparts.

However, in Pipa, foreigners are discussing selling property as much as they are buying it, as improvements to Natal are planned ahead of the World Cup.

The city is to see its harbour deepened so that cruise ships will be able to use it, while there is to be investment in public transport, Mr Foster reported.

While real estate agents operating in the area told the journalist house prices could continue to rise and the assets still represent a good opportunity for foreign investors, abodes are also being developed to specifically target the domestic market.

Meanwhile, property in Rio de Janeiro is growing in value, with real estate now worth more in the city than in Sao Paulo.

The final of the World Cup is likely to be held in Rio de Janeiro, bringing the probability of infrastructure improvements to areas such as Barra da Tijuca, the writer explained.

It is not only residential Brazilian property that is doing well, but also commercial real estate, which the latest Royal Institution of Chartered Surveyors' Global Commercial Property Survey said outperformed the US market in the third quarter of this year, with capital value and rents expected to increase in the future.

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