Sunday, June 19, 2011
One neighborhood in this modern gleaming city is getting a facelift...
Dear Reader,
I watched as the truck pulled alongside us to park. It was a big, old truck, a little out of place alongside the shiny new pickups and SUVs cruising past. And then a small detail caught my eye. The truck's driver had small, bright feathers strapped around his upper arms, and a circlet around his head. I wondered if he was a traditional dancer, or tour guide. Instead, he headed towards a stall in the plaza, stacked with hand-made metal goods, including arrows and spears, and joined a group of friends manning the stall. They, too, had feather adornments.
To one side of the plaza, my host pointed out an old theater. The building looked nice on the outside. But this was merely a shell, protecting the real treasure inside: A cast iron Art Nouveau structure, imported from Scotland in the early 1900s. It was wonderfully ornate, with stained glass, elaborate fretwork, and painted ceilings. We'd already passed an obelisk, an old seminary, and a little cluster of small colonial houses in shades of tangerine, jade and neon-pink.
I had to keep reminding myself that I was in Fortaleza, a modern, bustling city on Brazil's northeast coast. I usually spent time on scouting trips to the city in the traditional boardwalk neighborhood of Meireles. Meireles is the prime city location. Everyone wants to socialize on this stretch of boardwalk...exercise, enjoy dinner, hang out ...and to live here. Today, a gleaming curve of high rises lines this boardwalk. There are no development plots left. Property prices soared as a result. New pre-construction properties on the boardwalk cost up to 10,000 reals per meter.
But this neighborhood...with those older buildings, and sense of history...has properties that are much more affordable than in Meireles...with good appreciation and rental potential. That's because this neighborhood isn't the most fashionable right now. But that's about to change. Because this neighborhood is getting a facelift.
The first part of the facelift is already complete. This neighborhood, you see, didn't have a boardwalk, until April this year. The new boardwalk blends seamlessly with the traditional Meireles one. It ends at the site for a planned aquarium...South America's largest aquarium, in fact. This modernist masterpiece will be the biggest tourist attraction in a city that's already Brazil's top domestic tourist destination. It should open in 2014, before the Soccer World Cup comes to town.
An artist's impression of the aquarium, which will be South America's largest aquarium
The other part of the facelift involves clearing out the dingy bars and seedy clubs in the neighborhood. With the rise of Meireles, this neighborhood became run-down and overlooked. A small red-light zone moved in. This put off families and middle class professionals. They no longer wanted to buy property here.
The local municipality has declared war on the red-light clubs and bars, issuing closure notices, new stricter regulations on the type of businesses that can operate here, and even stopping some charter flights that brought sex tourists to the city. The municipality's plans for this location don't include red light areas. Those shabby bars and cafes will become art galleries and trendy cafes. The municipality plans to transform this area into the city's cultural heart.
This place already has an existing cultural center. This large structure, with mosque-like domes and aerial walkways connecting different sections, houses art exhibitions, concerts, and dance displays. You can see a movie, catch a theater show, or simply relax over dinner or drinks at one of the many bars and restaurants in the historic buildings close by.
Iracema in the evenings: Groups gather for dinner, socializing or cultural events
In the evenings and at weekends, large groups gather here to socialize and party. A pirate-themed nightclub, complete with a huge model of a pirate ship, hosts crazy Monday night sessions (it usually doesn't open the rest of the week). Many of the former storage warehouses, used until the local docks relocated to another part of the city, are now exhibit space, artists' studios, nightclubs and music venues. This is a buzzing, bohemian place with a unique vibe.
Iracema is home to the city's cultural center
Even the shopping is different in this location. Instead of a sterile mall, there's a cobblestone street, packed with little stores selling handbags, clothing and shoes. A huge central market stocks just about all the souvenirs you could possibly want, from hand-woven lace to the local firewater, cachaca. And a maze of streets specializes in different goods. One street sells electronics, another household linens, and another office supplies. Prices are generally lower than in the more modern malls.
Those lower prices apply to properties here too. This wasn't the city's most desirable address. But with the new facelift, that will change. You can already see some of the signs...older buildings undergoing renovation, and hip buyers moving in.
I checked out a new high-rise, a few blocks back from the beach. The top-floor social area with a swimming pool and barbeque offers panoramic views of the entire district. From the higher-floor condos, you get awesome views down to the boardwalk, beach and ocean.
And the area's new tighter planning regulations benefit this building. Neighboring buildings will have a 13 floor limit. Units in this building from the 14th floor up should therefore enjoy their ocean views without the worry of newer buildings blocking them.
Units in this building start from 193,939 reals ($121,023). Once furnished, you can move in...or rent them out. They make perfect rentals for local middle class professionals. The units offer the possibility of both a strong rental yield, and price appreciation as this location catches up to its older, more established rival, Meireles.
Right now, these units start from 4170 reals per square meter. Compare that to the up to 10,000 reals per meter you pay in Meireles, and you'll see the potential.
The catch is that there are only 23 units left. Contact our local broker on the ground, Daniel Neves, to find out more today.
Margaret Summerfield
Posted Under:
rental yield, appreciation potential, real estate opportunities
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