Safe, Affordable, and Overlooked: Brazil’s Retirement Hotspot

Wednesday, November 11, 2009

João Pessoa boasts year-round sunshine, balmy tropical water, and big-city amenities with a small-town feel

Dear Reader,

I believe I’ve found Brazil’s top retirement destination—an overlooked but beautiful and affordable city in the northeast. It’s warm and sunny year-round…and ideal for health-conscious retirees. In Uruguay, my top pick was Punta del Este … here in Brazil, it’s João Pessoa.

João Pessoa is the capital of the state of Paraíba. It’s one of the oldest cities in Brazil’s northeast, and home to 700,000 inhabitants. It’s the most easterly point in Brazil, known as “The City Where The Sun Rises First”.

The city has 1,730 acres of forest (7 square km), providing a green backdrop to almost 25 miles of beach (40 km). João Pessoa has some of the best city beaches I’ve seen. Moreover, beachfront properties are still affordable.

The crime rate in João Pessoa is the lowest of any state capital in Brazil, and I felt completely safe here. The city is clean, and has to rank as one of the most health-conscious places in Brazil.

I stayed in the Cabo Branco district, which sits on a beautiful curve of light sand, bordering a bay. The sand fringes a protected area of palms and greenery, which conceals the kiosks sitting on the adjacent boardwalk.

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 storeys. That gives the boardwalk and beach area a unique charm, as well as giving ocean views to taller buildings behind the boardwalk.

Social life in João Pessoa centers on the boardwalk, which runs for about 16 miles. The street beside the boardwalk closes to traffic from 5 to 8 AM, freeing the area for joggers and walkers. In the evenings, family groups gather, while teenagers rollerblade and couples stroll along, hand-in-hand. The kiosks serve drinks and snacks. Restaurants specialize in churrascaria (a mix of barbecued meats), fish, and Italian food.

On weekends, the beaches are busiest. In Cabo Branco, you don’t get many vendors. You’ll find them in Tambaú, the neighboring section of beach, which is more touristy.

Despite a population of 700,000, the city feels like a small town. The locals are friendly. News travels fast here…

João Pessoa is a favored retirement destination for Brazilians from São Paulo, Rio and other towns and cities in the northeast. Many professionals and former civil servants choose the comfort and safety of João Pessoa over their own hometowns. Many of these retirees are younger, and seeking a healthy lifestyle…and you can certainly find that in João Pessoa.

The sun rises just after 5 AM here, and the joggers and walkers head for the boardwalk. Local gyms are busy, too. Some kiosks on the boardwalk serve fruit salads, and coconut water, as well as fresh-squeezed fruit shakes with guaraná and açaí berry. The air in the city is reputedly some of the cleanest worldwide.

The pace of life is tranquil. Cabo Branco especially is quiet at night, while nearby Tambaú is more lively, attracting tourists and a younger crowd.

Apart from Brazilians, you’ll find some Europeans, but few Americans. It really is off the radar for Americans, and in fact, the few Americans I met had Brazilian partners.

Retirees from other Brazilian cities, and locals, drive the property market here.

I had my eye on one development in a prime boardwalk location in Cabo Branco. The property deed had not transferred to the developer—yet most of the units had sold.

Despite the city’s many advantages, property prices run around 3000-4000 reals per square meter on average ($1760 to $2350). Prime city boardwalk properties cost up to 5000 reals per meter ($2935). That’s significantly less than other locations in Brazil, including Fortaleza, Recife, or Maceio.

The most exciting districts on the property market are Altiplano, and the beach areas of Cabo Branco and Bessa.

Bessa is not as developed as Cabo Branco, and some side streets are still packed sand. It attracts a mix of arty bohemians and middle-class professionals. New boutique hotels and luxury shops are springing up, along with high-end developments. The city’s bigger hypermarkets and mega-malls are close to Bessa.

A pre-construction development in Bessa offers beachside apartments from 230,000 reals ($134,965) for a 65 square meter unit (700 square feet). These are true beachfront properties—there is no boardwalk, and you walk straight from the building onto the sand.

Altiplano is a residential neighborhood with many high-end homes, and a cultural center. The municipality of João Pessoa released tracts of land here for development in September. There’s an excitement about what the next five years will bring to Altiplano. There’s talk of hotels, shopping malls, and private schools, as well as residential development.

I think Altiplano is shaping up to be a good area for investment, if you get in early. I’m following this area closely, and watching out for future developments, particularly beachfront and resort-style ones that would interest investors.

A very upscale project by a Swiss developer currently under construction offers 332 square meter (3572 square foot) apartments for 872,000 reals ($511,692). That gets you a whole floor to yourself, and some of the finest finishings in the city.

I was surprised at the size of apartments in João Pessoa. Around 250 square meters (2700 square feet) is common, and some developments offer 500 square meter (5380 square foot) apartments. There’s a strong demand for these larger, luxury properties, costing up to a million reals (over $586,000).

Retirees here don’t downscale. They appreciate spacious surroundings, and enough room for family and friends. Investors and second homebuyers purchase the smaller apartments. I expect that will change with increasing numbers of US and Canadian retirees, who usually don’t want the maintenance and care of such large apartments.

Comparing retirement destinations, João Pessoa’s climate wins over that of Punta del Este. It’s warm and sunny in João Pessoa year-round, while Punta del Este is seasonal. On the other hand, Punta del Este is more affordable, in terms of day-to-day living costs and property prices. You’d have to figure out which took priority for you, based on your budget and if you planned full-time or part-time living overseas. When it’s winter in the US, it’s summer in Punta del Este…so you could divide your time between the two countries and enjoy year-round sunshine.

But if you’re searching for tranquility, safety, a healthy retirement and year-round warm sunshine, you can put Brazil back on your list. Just make sure it’s João Pessoa you head for.

If you’re interested in property in João Pessoa, contact John Curtis, (JavaScript must be enabled to view this email address).

Margaret Summerfield

Editor’s note: The prices in this report are based on an exchange rate of R$1.70 Brazilian reals per US dollar.