This Stretch of Sandy Coastline Holds the Best Beachfront Deals in the World Right Now

Pristine, white-sand Cumbuco beach is just one of many that run along Brazil's north coast.

Friday, 11th April
Fortaleza, Brazil

Something's happening on the north coast of Brazil. Dear Real Estate Profit Seeker, A great machine is coming, a machine of property developers and promoters who learned their trade on the costas of Spain, the Persian Gulf coast of Dubai, and anywhere else the European investor cast an acquisitive glance across a border. I know, because I'm a small cog in that machine. Right now, a relatively small group of Europeans have the white-sand beaches of this tropical coast all to themselves. They're buying beachfront lots for $19,000…beachfront condos for under $100,000.

Ronan McMahon

But this is set to change--the world market seldom sees price distortions like this. Already an invasion of foreign buyers has begun from both the U.S. and on a much larger scale, from Europe.

My developer and investor contacts are already scouting here. These guys have cashed in on real estate investments in Ireland, Spain, and France. As opportunities dried up in Europe, they moved to Panama. Now they are focusing on Fortaleza, Brazil.

As far as I'm concerned, Fortaleza is the best beachfront buy on the planet right now. An opportunity like this doesn't happen often. And when it does, you need to be ready to move…and to move fast.

I've seen opportunities like this play out before in Nicaragua's South Pacific, the beaches of Panama, and the Bay Islands of Honduras. Those who get in early and buy quality stand to make a killing.

But the window of opportunity for big real estate profits will not be open for long. Once the mainstream learns of the incredible deals to be had down here, prices will start moving steadily upward. You will need to act soon in order to ensure you will find the best opportunities available.

Hundreds of miles of dazzling, white-sand beaches surround Fortaleza. Its clear, tropical ocean waters maintain a year-round temperature of 80° F. Serving as the glimmering centerpiece for the state of Ceará, this capital city of almost three million people is now the number one tourist destination in Brazil. Fortaleza boasts its own beautiful in-city beaches, sizzling nightlife, and great restaurants.

Yet you can still buy a downtown apartment with a sea view for $90,000. Beachfront lots go for as little as $19,000, and second-tier lots go for half that.

Fortaleza is popular with European travelers, expats, and investors, but completely off the radar screen of North Americans…for now.

Brazil has not been popular as a beachfront vacation destination for Americans because there are appealing vacation spots closer to the U.S. and Brazil does little to promote its tourist industry to North Americans. This lack of travelers has resulted in little competition among the airlines, high travel prices, and few travel options.

But this is set to change.

The Next Hotspot for Serious European Developers and Investors

This market will move upward once the U.S. buyer arrives but there's another--much bigger--factor at play that will have a major affect on this market.

European tourists have been coming here for years but it's about to become the next hotspot for European developers, investors, and second homes buyers. Until now, Fortaleza has seen a relative trickle of European buyers. Sure, they dominate the market today but you're only seeing the tip of the iceberg.

In Europe there is a great machine that drives real estate markets, made up of developers and promoters. This industry grew out of the property boom in Spain and became a multinational phenomenon as participants looked to diversify from a slowing Spanish market. They began by looking outside the Costa del Sol and ended up creating a market for northern European investors from Dubrovnik to Riga . I speak often with many of the guys involved in this machine, big developers with deep pockets--they think Brazil is the next big thing, and their sights are set on Fortaleza.

Wholesale land can still be bought at great prices, but like the retail end of the opportunity this is set to change once word gets out.

Today I met with one of my contacts on the ground in Fortaleza. He is in the business of finding parcels for predominantly European developers. He rattled off a series of recent deals. For example, 337 beach plots (with villas planned) which sold to a major developer from Spain. Another Spanish group bought six miles of beach. A luxury home builder from the UK has bought two miles of beach. All bought under the radar--that's how these guys operate.

They snap up parcels of land using local contacts to represent them in negotiations because as soon as word gets out that serious developers are interested in a market, sellers will dramatically increase the price.

It will be two to three years before these projects are released at a retail level. These groups aren't in the business of selling raw lots. They want to develop high-end master planned resorts. The big boys will raise the bar and price their projects more in line with offerings in the other markets they have been successful in. Lock down land today and you will be ideally positioned to get a piece of this upside.

I'm here in Brazil for a two-week intensive on-the-ground scouting mission with Len Galvin, International Living's editorial director. We're investigating first-hand the best beachfront deals that surround this city. We're meeting with the movers and shakers in real estate on Brazil's northeast coast. The owner of the biggest and best construction company….the top architect….the guy who major European investors trust to find them development land…and the lawyer approved by a major U.S. title insurance company.

We won't be doing the tourist trail or lingering over coffee. We're going straight to the deals. Beachfront lots, big parcels of raw land, condo projects…we'll see them all. After seeing everything we will take a second look at the best to make sure we didn't miss anything. And then we'll report directly to you on what we find.

I'm taking lots of photos and some video, but I should point out upfront: The quality of these video clips and photos…we're talking amateur hour…no-one's going to win any awards for camera work from this trip. But the quality of the beachfront opportunities contained in our badly-shot footage…I can guarantee…will be first rate.

Stay tuned for my reports.

Your International Real Estate Scout,

Ronan McMahon,
The Leading Edge