Friday, October 08, 2010
Dear Reader,
Fortaleza is getting a major infrastructure upgrade as part of the build-up to the 2014 soccer World Cup. Fortaleza is a host city.
A new metro system will provide modern and reliable public transport. The first two of the routes (south and west) are already operational. This week the contract was awarded for the east line. This will be the only fully underground line. It will run under leafy residential and commercial areas (like Aldeota) as far as the new convention center. The exterior of the convention center is practically complete. It will be the second biggest in Brazil. With two million square feet of space, it can hold up to six events at the same time.
The area around the new convention center is on my radar. Blocks away from the central park, the convention center is located on Ave Washington Soares. This is the axis of growth of the city towards the rich suburbs of Eusebio and Aquiraz (home to Beach Park, with South America’s biggest water park).
Next door, UNIFOR (University of Fortaleza) is the largest private university in northeast Brazil with 25,000 students. Across the street is another private university and Fortaleza’s main court house. 140 judges sit here and 2,403 people work here. This is Fortaleza’s legal hub. Nearby buildings house the association of federal judges, the public defenders building and the Tribunal of State accounts. Two office buildings house legal professionals.
Nearby is Iguatemi, the largest mall in Fortaleza with over 300 stores. Hundreds of businesses are located in this area.
The real estate market here is strong. And that’s even before the metro brings improved accessibility and Brazil’s second biggest convention center brings jobs and people. I consider this area to be a pocket of opportunity.
Meantime, Brazil’s upward trajectory has been greater and faster than expected. This is good news for our investments in Fortaleza.
Passenger traffic at Fortaleza’s (Brazil’s #1 domestic tourism destination) airport increased 23% year-on-year to the end of August 2010, and cargo traffic rose by 40% in the same period. This increase is on a record previous period. Budget airlines are growing exponentially as this new middle class take their first flight and vacation. 30% of tickets sold by domestic airline GOL last year were to first time flyers.
So far this year, through the “Minha Casa, Minha Vida” (My House, My Life) program close on one million new middle class homes have been delivered. A survey released this week reports that 37% of Brazil’s lower middle class has plans to buy a home in the near future. Two and a half million new jobs will be created in Brazil this year and the economy is expected to grow by between 7% and 8%.
Now that’s a market I want exposure to!
Ronan McMahon
Editor’s Note: Stay tuned. I’m working on a special prerelease deal close to the convention center that I hope to tell you about in the coming weeks.
You might also be interested in:
The Four Strategies for Successful Real Estate Investing
Posted Under:
brazil, appreciation potential
Want More?
Sign up here for your free Pathfinder Alert e-letter, and we’ll send you our $50,000 Report...showcasing seven real estate opportunities for $50,000.
