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Will Natal as host city in WC 2014 increase real estate investments?

Poll closed Jun 11, 2009.
  1. Yes

    38.5%
  2. No

    15.4%
  3. Yes, and as well awareness of Natal as a tourist destination

    46.2%
  4. I dont know

    0 vote(s)
    0.0%
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Will the World Cup in 2014 help on property prices in the Natal region?

Discussion in 'Brazil Property' started by natalbrazil, Jun 1, 2009.

  1. natalbrazil

    natalbrazil New Member

    It is a long time since I have seen so many happy people and especially politicians (surprise) in Natal on the beach yesterday. When FIFA had their press conference around 15:30 Natal time, there was lots of people in front on the stage at Ponta Negra beach, a stage made for the occasion.

    YES !!! Natal is selected as a host city for WC 2014 !!!! The city will invest R$ 300 Million (according to the local news)

    But, so what? There was thousands very happy citizens and local investors (and some exited foreign investors) when the new Navarro Bridge opened in November 2007 as well, expecting the real estate prices on "the other side" to boom on Redinha beach and Santa Rita. I did not check the statistics on these prices, but there has NOT been much talk about these two locations the last 18 months, so I guess the bridge did not help much, as this was a very "local" driven hope for price increase on real estate.

    Will the same be the case with WC 2014 and Natal as a host city?I do not think so, on the contrary. This IS valuable for Natal and surrounding area.

    The government will do heavy investments and Natal will have another focus from international media in the time from now till 2014. After all, football/soccer is a world sport! This is an opportunity Natal will never get back, the government should use this to increase marketing of the city and region, to make Natal a well known tourist destination for ever.

    But marketing is not enough. Natal is in lack of basic infrastructure for tourism, so let us hope the local authorities as well invest in better infrastructure for tourism. For example, it is so strange that the state of Rio Grande do Norte does not even have a golf course! For a large region as RN this should be a minimum. The local authorities does not seem to have any interest, and foreign investors have over the last 4-5 years presented their "dream-projects" of a golf courses that mostly have ended up in bankrupt projects or disappeared like water spilt on sand...

    Anyway, the momentun in real estate prices for Natal and the region will be powered by this:
    1. New large airport (8th largest in the world) to be ready during 2013
    2. WC 2014
    3. A general improved market for real estate worldwide, starting slowly in 2010?
    4. Improved infrastructure for tourism (golf courses etc)
    5. Better conditions for charters to use Natal as a destination (incentives from the government?)

    I might add serious real estate developers, which the buyer can trust + more serious buyers that really know how to avoid buying "air".

    All this will improve Natal's possibilities to become the fantastic region to invest, to live and to visit. Momentum will after my opinion between mid 2010 and 2013. In this period we will see the largest increase in real estate prices, and rentals will be at the best from 2012 - 2014.

    So, dear investors, my opinion is that the best time to invest is from now on. Do your research and find the best location and best object to invest in, not only because of a world cup, but because of the future of the region.

    I would really like to have others opinion on my views.

    Kind regards
    Trond Aavik
     
  2. JMBroad

    JMBroad New Member

    Hi Trond and welcome to the forums.

    First off, I was also delighted that Natal has been selected to host the world cup and while I agree with most of what you say, I have a different opinion on a couple of points.

    The brigde - While it has made access to the Northern region of the state easier and certainly improved communication with Redinha and Santa Rita - I can't see property prices in Redinha and Santa Rita increasing because of the bridge - there are other factors other than the bridge which could probably influence property prices there more than the communication issues. Just for the two of us, for example, the bridge has helped a lot - I think I've used the old bridge once in the past four months.

    The government will be forced to improve infrastructure for tourism in every city where the 2014 will be held but we have to keep in mind that Natal already has one of the best tourism infrastructures of the Northeast. Of the 9 states which make up the Northeast of Brazil, only two currently have golf courses - Bahia (5 times the population of Rio Grande do Norte) and Pernambuco (almost 3 times the population of Rio Grande do Norte). Natal should have one and I hope we have one soon before I've totally forgotten how to swing a club - but I wouldn't say it's a "minimum" considering the amount of courses in the rest of the states. Ceará, for example, has almost the same number of inhabitants as Pernambuco (3 times the population of Rio Grande do Norte) and also does not yet have a golf course. We often forget that Natal is the capital of one of the smallest states in the Northeast - only Sergipe has less inhabitants in the state and only the capitals of Sergipe and Paraíba have less inhabitants than Natal. Natal is one of the cities with the most available tourist beds in the whole of Brazil (approx. 28 thousand)

    On the other hand, as mentioned, very few capitals in the Northeast have the same organized tourist infrastructure Natal does - with all the hotels lined up on the Via Costeira - (they seem to be doing some work on the Via Costeira - hopefully increasing the width of the road - we'll see) making it much easier for the traffic authorities to control the flow of people to and from the games, certainly one of the things which influences the decision of the FIFA officials.

    However, we can agree that:

    1) The airport - I now feel a lot more comfortable with the estimates that the airport will go ahead and be built by 2013

    2) The WC 2014 is certain to bring a lot of attention to the city and just by the attention alone, people outside of Brazil will start to realise the investment potential of the area - the increased awareness is likely to drive demand for both investment property as well as holiday homes.

    3) I'm not convinced that we'll already see a return in the global economy (read: outside of Brazil) as soon as 2010 however I hope you are right. I'm not totally convinced that the worst has already been and gone. Either way with interest rates as they are at the moment outside of Brazil and inside Brazil, I expect a lot more people will start investing (in one way or another) in Brazil in the next couple of years.

    4) Improved infrastructure for tourism - I would expect that the improvements will not only be for tourism - I expect there to be significant improvements in the general infrastructure of the city which will benefit tourism but mainly local inhabitants. If golf is one of them all the better but not sure we will have a golf course up and running in 5 years time only. Just the new stadium is estimated to cost R$ 300 million. The new stadium, to be sustainable will need to host several events - meaning Natal may start seeing more concerts, more sporting events and other cultural events and meetings.

    5) Charters - I hope so... This should be a natural evolution if the airport is opened.

    I'd also add that I'd expect the construction and improvement of the infrastructure to be quite significant and as such to improve not only the lives of those that live here but the constructions works are sure to employ a lot of the local lower income families - so it's good news all around.

    Another point I'd add is that this will probably make the government address the shortcomings of the current bus system in Natal which hasn't been able to handle the demand in a while already.

    Official Infrastructure improvements which are on the plans for implementation before the 2014 world cup include Modernisation and expansion of the urban train system, implementation of the connecting road between the West Zone - South Zone, implementation of the "Sistema de Transporte Rápido de Natal, fase 1 e 2" (Sistem of rapid transportation of Natal, phase 1 and 2 - otherwise known as a "subway system") and the improvement of the roads in the city centre.

    I'm personally looking forwards to it although I can imagine that a subway is going to make our lives a bit complicated for a while as roads are dug up and traffic interrupted to build it.
     
  3. Dotty

    Dotty Banned

    I'm not sure there will be a surge in overseas investors borrowing money to buy in Brasilian cities just because the W.C will be held here.That doesn't usually happen when the Olympics are held as most remain empty shortly afterwards.

    We will see a lot more unoccupied properties fill up quickly for high rental returns close to the games and hotels and pousadas doing great as would be expected.
     
  4. robh

    robh Administrator Staff Member Premium Member


    My friend in Australia couldn't get enough properties to sell to foreigners (foreign ownership is only allowed on certain types of property) both before and after the Sydney Olympics.
     
  5. natalbrazil

    natalbrazil New Member

    Thanks for replies so far. I dont agree with all of you.
    Dotty, we will see who's right. I am not expecting a surge, but for sure it helps on the market. Dont you think so? In Brazil you get the deed in your own name no matter what kind of property you buy.

    John, we need to talk :)
    It did not boom on the other side of Navarro bridge, but did anything happend at all? How many new developements have you heard of from Redinha or Santa Rita since 2007? I have heard zip.

    Golf, I still believe this should be a minimum. It is time to finish one till 2014. But someone need inspiration and the ball is on the municipios part of the court. To attract tourists we all know what a golf course does with a destination. It does not only attract golfers, but the family and friends around. This IS important to grow a destination. If not golf, what else is there to create? A professional waterpark that becomes a "must-visit" cost a lot more than a golf course. What else could they make? The size of RN compared to surrounding states does not matter really. If RN and Natal will win, they must THINK BIG, balanced with the content in the wallet they have. Why should not a small state be better than the bigger ones.Isee only possibilities.

    The new Via Costeira road is a disaster in my opinion. ok, they get a couple of extra files for cars. But they remove the bi-cycle and narrow the pedestrian area. And the access to/from the hotels will now become even more difficoult and dangerous than before. I dont like this at all. Just because there is protected sand dunes on the other side, they solve it like they do.This is so typical Brazil. They do it so cheap as possible, and does not think about the runners and bicycles. This will increase trafic problems and possible accidents.

    John, we should be politicians in this city, and really got the whhels turning, without corruption (yes, let's admit that is a big problem) :)
     
  6. debzor

    debzor New Member

    Natal, and especially those there, also need to remember the real estate mistakes from the recent past: over hype, over development, over supply and over price. A lot of people got their fingers burnt in the area, and will be highly suspicious before returning with fat wallets.

    To inadvertantly suggest that the new airport (while welcome and needed) will be the 8th largest in the world by 2013 is a case in point. It may become this over decades, but we should not beat that drum yet.

    It is also important to remember there are 11 other winning cities, (3 of which are in the NE, and 2 of those will also receive new stadia). These will all be competitive cities fighting for tourism, finance and investment. This is not Natal's world cup, but Brazil's!
     
  7. Dotty

    Dotty Banned

    Well said!!
     
  8. Blc

    Blc New Member

    JB Aquiraz Riviers golg is almost complete and will open doors in December located 45kms form Fortaleza.
     
  9. dhoskings

    dhoskings New Member

    A lot of people got burnt because they didn't know the credit crunch was coming and neither did a lot of developers. (In no way am I excusing the behaviour of some developers but buyers need to take some responsibility too)

    A lot of people are still going to get burnt in other areas around Forteleza and JP (and probably Itamaraca too) buying overpriced little plots in out of the way places that have no chance of ever getting a return.
     
  10. robh

    robh Administrator Staff Member Premium Member

    There has been one in the works close to Natal for a while planned (and approved I believe) by a big Brazilian developer, but it was put on hold until things get better.

    Regards,
    Rob.
     
  11. natalbrazil

    natalbrazil New Member

    Debzor, yes, I agree. But my point was if Natal will benefit in any way, as I work in Natal. I for sure hpe the other cities here in the north will benefit as well, as Fortaleza and Recife. I am also happy you agree with me in the fact that the buyers can improve their "buying skills" .So, quoting myself:
    "I might add serious real estate developers, which the buyer can trust + more serious buyers that really know how to avoid buying "air".

    I still believe that Natal's is fantastic region to invest, to live and to visit. Momentum will after my opinion between mid 2010 and 2013, and I believe that the best time to invest is from now on.

    Most important for the agents and clients is as alswys: To do serious research/DD and find the best location and best object to invest in, not only because of a world cup, but because of the future of the region.
     
  12. JMBroad

    JMBroad New Member

    Me, a politician? No chance... the only way in which I'm politically inclined was when Hunter S Thompson ran for Sherrif of Aspen and then only to see what he'd do with it... one could call it a morbid curiosity.

    :D
     
  13. DGM42

    DGM42 New Member

    Yes it is fantastic for the cities that have now been told they will be hosting games.
    I like others are happy that we can maybe make some money from this, me in Belo Horizonte.
    The hype is great but they have not listed yet which cities will be hosting which games, this will make a major difference to the amount of people going to see each game.
    You only have to look at past world cups and Olympics and anyalise the spectator figures at each venue, some will be sold out others not.
     
  14. debzor

    debzor New Member

    Yes, no matter where, a fool and his money are easily parted...
     
  15. natalbrazil

    natalbrazil New Member

    the ariport in Natal

    Debzor and Dotti, just for the record; The new airport in Natal will in size be the 8th largest constructed airport in the world, measured in capasity for flights and the size of aircrafts that can land there. The capasity is for 5 million passengers. I did not want you to think that this airport will be the 8th largest in passenger traffic, sorry if you did misunderstand that.

    This airport is intended to be the main hub for air cargo from Europe to latin and South America, and Natal was choosen for its strategic location "in the middle" of this continent and due to the fact that we have the shortest travel distance to Europe from here.

    I hope all is more clear now.

    Trond
     
  16. debzor

    debzor New Member


    Thanks, Trond. I need to advise that you are a most welcome contributor, but this subject has been discussed ad infinitum on this forum. That should not prevent you from sharing your opinions, but merely serve to encourage research into previous posts.

    I suggest everyone is pretty much aware of the new Natal airport situation, and I would also refer to my earlier comment which included 'over hype'.

    Possibly the best advise is to promote the new airport as a much needed and very important part of the infrastructure, which has the potential, in time, and with the right market conditions, government/private investment, commercial will and support, etc, etc...
     
  17. Celt

    Celt New Member

    world cup 2014

    Great news for Natal's property market and the city itself which will benefit from large-scale infrastructural improvements. History has shown that major sporting events always give a boost to the local property market. Hopefully the global economic crisis will be long behind us by then.

    celt
     
  18. Dotty

    Dotty Banned

    The new stadium will only holds 45,000 people !Of the 3 matches that will be played here I would imagine them to be from the early stages of the W.C.
     
  19. debzor

    debzor New Member

    Being a host city for one of the group stages of the World Cup (?3 games I think), is not the same as hosting the Olympics.

    The publicity attracted in a World Cup will benefit Brazil far more as a whole, not Natal as an integral part.
     
  20. robh

    robh Administrator Staff Member Premium Member

    Most world cups have 64 games, so I would be interested to see how they are split up in Brazil.

    If you look at the SA world cup, you will see the group matches (48) are mostly evenly spread over the host cities (which would mean 4 per host city in Brazil if they spread it evenly).

    The next round (round of 16) are played in the bigger cities with bigger stadiums (only 8 games), then the the quarter finals (4 games) go to the bigger stadiums again.

    The semi finals (2 games) are played in 2 large cities, then the final and 3/4 place games are played in 2 other major cities (probably Rio and S.P.).

    You will see major infrastructure improvements in every host city as there will be tv crews and tourists all over the place and every city will want to look it's best...

    The Olympics are another matter, the infrastructure is built mainly for the 1000's of athletes as there aren't really that many spectators. In Sydney I could buy tickets for just about anything right up to the last minute, not that i went to anything as I was too busy surfing the new break created on Bondi beach by the beach volleyball stadium :).

    Regards,
    Rob.
     
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