?

Will the FIFA World Cup 2014 help the Brazilian real estate market?

  1. Yes

    2 vote(s)
    33.3%
  2. No

    1 vote(s)
    16.7%
  3. Not Sure

    3 vote(s)
    50.0%

Will the FIFA World Cup 2014 help the Brazilian real estate market?

Discussion in 'Brazil Property' started by totallyproperty, Dec 12, 2013.

  1. totallyproperty

    totallyproperty Administrator Staff Member

    All eyes are on Brazil now as we count down to the start of the FIFA World Cup 2014. Do you think this massive sporting occasion will have an impact upon the Brazilian real estate market?

    Could Brazil use the event as a showcase to promote what it has to offer to overseas investors?
     
  2. Bidu

    Bidu New Member

    Several plots/apartments/houses are increasing value at the cities that will have football's matches.

    Here in Natal, prices slightly increased 10% due to the world cup. Personally, I don't see as a reason to increase prices, but the companies are capitalists.... so let's see what happens.

    In time... it's important to mention that there are still interisting options in good cities for a fair price. But a research is necessary for that.
     
  3. Allumjo

    Allumjo Member

    My concern is what if there are further demonstrations and disruptions during the World Cup thoughts?
     
  4. Bidu

    Bidu New Member

    Probably it'll happen. But I don't see it affecting prices in plots/houses.
     
  5. Allumjo

    Allumjo Member

    I think perception is very important and the World Cup is a massive opportunity for Brazil but there seems to be an undercurrent of social unrest. I don't think scenes that were witnessed last summer would be welcome attention and would affect property on the down side.
     
  6. Murfster

    Murfster Member

    It's 5 weeks in a calendar year/life time. Great marketing speel but not a basis for real estate "growth". If you have bought in somewhere like Itaquera (hardly likely) then possibly you will gain the benefit of the development of complexes rather than world cup stadia...but even then don't count on it.
     
  7. Kliffy

    Kliffy New Member

    I think the world-wide recessional recovery together with the new airport in Natal are more reasons to see any significant movement in property values in Natal than the World Cup itself. The World Cup will be the 'shop window' but the ability to more easily get to Natal in numbers from Europe and the financial ability to purchase will be the main reasons for change.
     
  8. lutjebroek

    lutjebroek New Member

    I think you forget that just building a new airport is not going to get the carriers to fly to Natal from anywhere. They won´t do that as long as they are not reasonably sure to get the seats filled.
    The WK will give some movement of tourists, during the two weeks that the tournament lasts. But the expected 600.000 or so are scattered over the whole country.

    It was a white elephant.
     
  9. totallyproperty

    totallyproperty Administrator Staff Member

    As mentioned above, perhaps the World Cup itself will not have a major impact upon the real estate markets of Brazil but it will give the country a major platform on which to promote the benefits of living, working and invested in Brazil. This in itself is probably worth more than a short-term boost in tourism.
     
  10. Kliffy

    Kliffy New Member

    Should the world recession continue to ease Europeans will again be looking for cheap geopraphies in which to invest. Although not as cheap as before the recession Brazil remains 'cheap' in world terms. The problem was and still is getting enough access into the country ie bums on seats (aircraft) . At least the new airport has the capacity. True there needs to be the carriers to make that happen but if monopoly restrictions are lifted other carriers will come from Europe if they can fly directly into Natal. The old Thomson flights were always full. I am sure the demand will return if European carriers are allowed to fly into the new airport.
     
  11. totallyproperty

    totallyproperty Administrator Staff Member

    Hi Kliffy

    Just a thought - do European investors have enough "cheap" assets to consider across Europe before looking further afield? I thought I would drop that into the conversation.

    I have just added an article about the Cyprus real estate market - bombed out, not a friend in the world - is that now in the early throes of looking good value in the longer term?

    http://www.propertyforum.com/proper...nst-cyprus-real-estate-is-it-time-to-buy.html
     
  12. totallyproperty

    totallyproperty Administrator Staff Member

    Personally I think there is potentially big money to be made in the short, medium and longer term taking a contrarian approach to investment. Looking at these many many real estate markets which have been bombed out without a friend in the world. It would be a rocky ride but there is potential for some really good returns if you get the right markets and have enough capital to hold for the longer term.
     
  13. Kliffy

    Kliffy New Member

    Not right now but as the recession eases (2-5 years my guess) my opinon is investment abroad will return to all cheap geographies even Cyprus and Spain!!!
    I had the opportunity but not the money to invest in Portugal in the 70's prior to the revolution when, not surprisingly, you could pick up property in the Algarve for next to nothing. Now you can't buy anythng worthy in the Algarve for less that £500k. I liken Brazil to this (without the revolution)!!!
     
  14. lutjebroek

    lutjebroek New Member

    I have no idea what "monopoly restrictions" you are talking about.
    The big carriers (I was NOT talking about charters like Thomson and/or TUI) from Europe or the US will generally do the service from their own hub to a hub in Brazil, leaving local traffic to local carriers (maybe a partner). This system exists already for years and has really not much to do with monopolies, certainly since there are "open skies" agreements.

    Unfortunately, for you guys that try to promote your interests in the NE property market, Natal (nor Fortaleza, nor Recife) was never a hub in that sense, and probably will never be. That is simply because there is not enough DEMAND, year around, for a frequent (say daily) service that is viable and profitable.

    The new airport, it has said many times so, was advertised as becoming the biggest in Latin-America´s. For that to happen, it has not only to handle millions of passengers a year, but also tons and tons of freight. For the time being, it is not even operational, and that should give rise to some less optimistic outcome.
    Very simple: the airlines plan their routes very carefully and at least a year ahead. They will NOT plan a route on an airfield that is not ready, or even authorised to operate.

    Furthermore, as far as I understood it, the demand was really never there, the megaprojects failed because of that fact. So, you can´t speak of RETURN of demand.

    I also think that the prices of properties in Brazil are almost nearing the ones from Europe. The only advantage could be the favourable exchange of the euro into reais, but that could change anytime, we have seen it before.
     
  15. Kliffy

    Kliffy New Member

    All good opinion points well made. For the record I am an property owner in Brazil not a real estate agent. Agreed the new airport has to open first and be seen as a viable option unlike the limitations of the current airport. At least the capacity will be available then it up to the recovering world enconomy and market forces. But at least the North East will be better positioned to develop should European interest materialise.
     
  16. totallyproperty

    totallyproperty Administrator Staff Member

    I remember a number of years ago when various celebrities were investing in property developments across many areas of Brazil.

    The region has certainly benefited from relative economic strength compared to Europe and North America after a period of financial difficulties which saw Brazil teetering on the brink of bankruptcy. I think we will see some repatriation of funds towards Europe as and when the European markets recover but I think areas such as Brazil will certainly be a larger player in the international real estate market in the future, compared to years gone by
     
Loading...

Share This Page