Friday, September 10, 2010
João Pessoa has twenty-five miles of city beaches, wrapped around a point
Dear Reader,
If you’ve been following my dispatches, you’ll know that my top choice for potential capital appreciation and for rental income is the city of Fortaleza, on Brazil’s northeast coast. And I’m not just talking the talk—I have bought multiple condos here myself. Property values are rising, and on completion, I expect a strong rental yield from my units. I am very happy to date with my Fortaleza purchases.
Today, we have an opportunity to the south of Fortaleza, in João Pessoa.
João Pessoa is the capital of the state of Paraíba. Surrounded by miles of beautiful beaches, this is where many Brazilians, retire, vacation and buy second homes. In particular, the city is popular as a retirement destination for senior civil servants, who retire young. They often choose João Pessoa for retirement over their own home cities and towns, elsewhere in the state of Paraíba, or from cities like Sao Paulo and Rio de Janeiro in the south.
The city has seven square kilometers of forest, providing a green backdrop to almost 25 miles of beach. João Pessoa has some of the nicest city beaches you’ll find anywhere. Beachfront properties are still affordable—and they are in hot demand with renters.
The city is one of the oldest in Brazil’s northeast. It’s the most easterly point in Brazil, known as “The City Where the Sun Rises First”. The French, Dutch, Portuguese and Spanish all vied for the city at various stages, trying to control the lucrative sugarcane industry in the area. It’s roughly 75 miles from Recife and 110 miles from Natal.
Despite a population of 700,000, and all the big city conveniences (hospitals, shopping malls, hypermarkets, hardware stores, car showrooms), João Pessoa feels like a small, friendly town. That’s partly down to the easygoing, helpful locals. They’ll chat to you in supermarket queues, and point you in the right direction when you can’t locate a building, even if you don’t speak Portuguese. The pace of life is tranquil, too. Best of all, the crime rate in João Pessoa is one of the lowest of any of Brazil’s state capitals.
One attractive feature is height restrictions for buildings facing the boardwalk. Aside from a handful of older, higher buildings, the boardwalk is limited to three to five stories. That gives the boardwalk and beach area a unique charm, as well as giving ocean views to taller buildings behind the boardwalk. Moreover, it restricts development…and places a premium on boardwalk and beachfront property.
The weather’s warm and sunny year-round…and the beach lifestyle is ideal for younger, health-conscious retirees, and second-home buyers. Social life in João Pessoa centers on the boardwalk, which runs for about 16 miles. The boardwalk kiosks serve juice drinks, coconut water and fruit. Restaurants close by specialize in churrascaria (a mix of barbecued meats), fish, and Italian food.
João Pessoa is a great place to spend time. And you can earn a strong rental income when you aren’t here.
While popular with tourists, João Pessoa doesn’t have much choice when it comes to hotels. The 4-star Verde Green is the city’s newest and nicest hotel. Not that it has a lot in the way of competition…the other hotels are 2 or 3 star, and “tired” best describes their décor. Yet according to my sources on the ground, estimated occupancy rates average 86% year round. Rack rates in the Verde Green average 193 reals to 387 reals a night.
Quality short-term rentals are difficult to find, and command up to 800 reals per week for a small one- or two- bed unit. The best place to buy for rental…and for a second-home location you’ll enjoy…is the prime residential area of Cabo Branco.
The city’s protected forest limits development here. This exclusive neighborhood borders the boardwalk. Cabo Branco sits between the ocean and the forest, on a thin triangle of land. You’ll find the city’s nicest restaurants and boardwalk kiosks here, and uncrowded stretches of beach. Cabo Branco is a favorite of holidaymakers, retirees and second homeowners.
João Pessoa is a place you can enjoy a great quality of life, a strong rental yield or maybe a bit of both.
Ronan McMahon
PS: This week, I told members of Real Estate Trend Alert about a special early-in opportunity in João Pessoa’s most desirable neighborhood. Deals like this don’t come up often - and they sell fast. You can find out more about joining RETA in this video I put together.
Posted Under:
beachfront, brazil, rental yield
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