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From: brazilrealestate1 on 30 Jan 2010 12:45 North East accounts for 28% of the Brazilian population and is responsible for only 14% of the GDP. So, why, today it is so important to the Brazilian Economy? North East of Brazil is the fastest growing geographical location in the country and here is why: The North East Region had the highest growth in production and employment much above national average. Whereas the National average for growth in 2009 was -0,1% the growth in the North East was 1,5% and National employment average in 2009 was 0,95% and 2,52% in the North East of Brazil. The effects of this have made the population of the North East Region has become a great consumer and retail has increased dramatically. The average income has been growing 7,3% annually since 2003 while the national average is 5,1%. The national growth for car sales between 2003-2009 was 87% while North East climbing to 107%, the national average growth of total commerce between the years of 2003-2009 was 66% and a stunning 97% in the North East. Today, most of large corporations and companies from the South of Brazil are racing to get a piece of the market in this region of the country while European investors have been enjoying the lucrative results for more than a decade now. The main reasons for this fact were the numerous investments in the Infrastructure and Industry sectors. MARANHÃO R$5,2 BILLION for the expansion of the Alumar Refinery, Alcao R$240 MILLION for the expansion of the Itaqui Port MARANHÃO & PAIUÍ R$6 BILLION for Suzano Factories PIAUÍ R$5,4 BILLION for the TransNordestina Railroad CEARÁ R$423 MILLION for the expansion of Pecém Port R$4,5 BILLION for the relocation of São Francisco River R$9 BILLION in infrastructure projects, upgrades and works for the 2014 World Cup PARAÍBA R$2,1 BILLION for expansion of the BR-101 Highway PERNAMBUCO R$8,7 BILLION for the Abreu & Lima Refienry R$2,9 BILLION Saupe Industrial Complex R$981 MILLION Saupe Petro Chemical Plant R$500 MILLION for the Novartis Factory R$310 MILLION for the Sadia Factory R$280 MILLION for the Perdigão Factory R$100 MILLION Kraft Facotry SERGIPE R$20 MILLION Estrela Factory BAHIA R$1,9 BILLION North East - South East Gas Pipeline R$3,5 BILLION Landulpho Alves Refinery R$50 MILLION Expansion of Nestle Factory R$50 MILLION Votorantim Cement Factory Interesting Facts. Salvador Bahia. The largest residential development in the country is located here where 2,200 workers labor 6 days per week. 5 years ago there was nothing but weeds growing here and now there are shopping malls, universities and many many residential condominiums. 18 towers are erecting with at least 16 floors each and 64 apartments. In less than one year 1000 of the 1138 apartments where sold off-plan with prices ranging from R$ 420,000 to R$ 1,1 Million. Conclusion. Thus, as we have given a green light to all institutional, private and corporate investors 6 months before world's top 50 banks for Brazil we are now giving it yet again to all investors interested in investing in the North East of Brazil Region. The market is there, go get it, get to know the place, mentality, culture and innovate. There are many opportunities open and many services & products that do not exist as of yet ! A bit more about the Fortaleza City Region. The PROs. By now, most of our readers know that this location has the great summer climate ( about 300 days annually), is the host to the largest South American Water Park ( Beach Park www.beachpark.com.br ), largest city in the region ( over 3 Million pop ), has direct flights from many US & European locations, is the most proximate to them, had the highest economic growth in the entire country in 2008 (6,4%), there still is over 160,000 unit housing deficit, super popular as domestic tourism destination and is a long time favorite with most Europeans as well, kite surfing Mecca (second on the planet according to professional athletes), is the World Cup host City, 2013 Confederation Games to be hosted here (rehearsal for the cup), is a huge tourist magnet, yadda, yadda, yadda, blah, blah, blah............... Here are some additional points: Some of the best infrastructure in North East Region. Consuming beast when it comes to imported/luxury cars, clothes, electronics and anything imported. People here are shopaholics and show-offs and they pay premium. Less corruption. More investor friendly. Headstrong government that fights for the State of Ceará. Governor Cid Gomes is one of the best things that has happened to it in over a decade. Has improved the place and secured much Federal assistance. Great Security measures with hiring additional police forces and acquiring large volume of vehicles and technology for their use. I consider Fortaleza City today as Rio de Janeiro #2 in growth, popularity and overall rankings with less violence, crime and chaos. Calmer, much calmer than most large urban coastal cities. Ranks below number 10 on the national list of crime levels. Education here has improved tenfold in the past 10 years. Medical, Legal and Technology fields are not only wide open but there is a very increasing demand for these professionals. Meaning, the job market for trained, educated professionals is here and it helps many persons in relocation to this part of the world. As far as real estate investments are concerned the time terms are usually shorter, ROIs are higher and the risk levels lower than most of the North East Region of Brazil. This market is much more accelerated than any other large city in the area. I guess this would be the reason why all of the main real estate and construction companies from other parts of the country are either already here and carrying on everyday business as well as others well on their way. Rental market is out of proportion. It is much, much better than everyone writes, much better than any article you may have read. This is intended for property owners & investors of course. If you are tenant you are, well, out of luck. The tourism market this year has caved in, literally. The supply could not meet the demand. Fortaleza City has received over 2 Million tourists this New Year's. These were national tourists and foreigners alike. That number might even be underestimating the situation. We did a little market testing and research. In end of October we were looking for hotel, resort, inn, flats and apartments for our friends, clients, guests, family members etc...The prices hit the roof, no I am wrong, went through the roof. You would have to pay 50% - 100% more than in 2005 if you were looking in this period of the year to reserve anything between 1st of December all the way up until 1st of March. By the time end of November has rolled around 99% of options were gone. Now you would have to pay double and triple. This is including beach front rentals all the way 90 minutes outside of town. Regular residential rentals from R$500 - R$1000 usually require 24 - 36 month contracts. You would be very lucky to get a 12 month one. You will have to additionally pay condominium association fees and even sometimes have a co-signor. The phone conversation with the agent or owner will not last 5 minutes. They have a long line of interested parties. Contract terms for the R$1000 - R$2000 per month range are not much different and the demand is only about 15% - 20% lower. All of the new jobs being created, all of the companies relocating employees, international immigrants and all of those new laborers who don't stop migrating to this city have caused this situation. Also, the population is multiplying as always. The situation is growing like a body builder on steroids. It will take you a whole 90 days to rent out your apartment for 24-30 month terms and a hefty, healthy monthly price, if that long. The CONs. Mostly social problems that do not affect investors who do not plan on residing here. Untrained, language limited work force. The tourism industry suffers the most in this instance. Even though I have seen great improvements there is still much, much work to do in this field. If I have been living here for over 6 yrs ( min 9-10 months annually ) and still have complaints and have not gotten used to the service there is something wrong with this picture. Illiteracy is very high. Distribution of income is still bad. Security is not up to par when comparing to US or Northern Europe. Public schools are a nightmare...until you get to University level where public schools are of the highest results. Roads could be bit better than I currently like and public transportation (rail) needs a complete overhaul. Do not blame me for saying this but Chicago being my hometown I do miss some of those "luxuries". All of these issues are supposed to be taken care by the time 2014 World Cup comes around. This remains to be seen but social problems normally take years if not decades to resolve. Who are we? We are a consulting and real estate investment management service focusing on international investors looking to acquire assets in NE Brazil, in Ceará State providing value adding solutions in this difficult business environment. Our clients are institutional investors, equity funds, pension funds, trusts, private investors & private equity, investment banks, and angel investors principally from the US, Canada and UK. Our real estate and investment professionals have more than 30 years combined experience and have been living on the ground in Fortaleza for a number of years. We closely monitor the real estate market and have a successful investment club Invest in Brazil on Google Groups, with more than 1200 investors/members providing regular updates and research on market developments for the past 6 years. As independent professionals we cover a gap in the property market, acting as specialist advisors in the interests of the client, and only the client. We cover all aspects including: advising on investment strategy, sourcing a portfolio of property investments to suit client requirements, performing due & legal diligence through oversight of developments, pro-active asset management while providing exit solutions. We are building the bridge between the language, legal, business mentality and cultural differences in this difficult Brazilian Business Environment for foreign buyers, investors and companies. We make sure that your ventures are performed correctly. We lookout for your best interest and make sure you have the proper representation. Mark McHugh Senior Partner Our Specialty: Independent Investment & Real Estate Advisory, "On the Ground expertise & experience", inside-market info, off-market opportunities, knowing who is who, PROs & CONs, awareness of pitfalls and counter- measures, whom to deal and whom not to deal with, invaluable local knowledge and networks, connections and relationships will help you add value to any investment or real estate venture through our services in Brazil for maximizing profits, preventing & minimizing problems and unnecessary expenses while obtaining the best results. Examples: We would like to invite you to join us at Invest in Brazil Club and share the wealth of knowledge in the Brazilian Markets. Whether you are part of FIABCI, Twitter, Facebook, Xing, LinkedIn, AFIRE, Yahoo Google or MSN Groups or Skype Community or any other networks we are sure that you will enjoy this Club! Business guide to Brazil - Please send feedback, join us for advice, tips, discussions and post articles/comments. Welcome to the Invest in Brazil Club with over 1100+ loyal members like you. Please join us at: http://groups.google.com/group/investinbrazil/subscribe http://www.linkedin.com/groups?gid=155581 http://www.facebook.com/group.php?gid=76590347392 This is a free, consultative business guide to Brazil, live and frequently updated. New developments, current news and investment opportunities are our strong point and the principle topics. Its focus is the real estate market as well as alternative energy and foreign trade (import/export) in the Northeast Brazil, State of Ceara, City of Fortaleza but we cover other parts of Brazil and other sectors of the market as well. http://www.slideshare.net/InvestinBrazil/BRAZIL3PPTCOMPATIBLE-MODE-97... Examples of properties / investments: http://www.escapeartist.com/International_Real_Estate/Brazil/Ceara.html We are here to build a bridge between culture, language, mentality and legal barriers so you could have a hassle free and painless experience. Our on the ground experience, strong local connections / relationships, market secrets knowledge & off-market properties / investments are your / our key to success. Here are some interesting documents you might want to take a look at or download. Articles, news flashes, hot property & investment alerts, new developments, market analysis, etc http://www.box.net//static/flash/box_explorer.swf?widget_hash=cc6eqf7...<http://www.box.net/static/flash/box_explorer.swf?widget_hash=cc6eqf7n...> Here are the types of properties and the services we offer; Properties: A.) Cash Flow Income Generating Properties & Businesses for Sale 1. Front beach villas, vacation, retirement, rental and residential. 2. Front beach land for residential or development as investments. 3. Front beach resort and hotels. 4. Front beach Water Park and pousadas. 5. Pre-approved projects ready to execute with land. 6. Land for alternative energy (wind hydro and solar) and biodiesel plantations. 7. Homes, hotels, pousadas (inns) and apartments condos in the large coastal cities. 8. Luxury properties. 9. Farm land. 10. Land for sustainable forestation. 11. Commercial space, land for commercial buildings, commercial buildings, shopping malls. 12. Wind power projects with land or land for wind power stations. 13. Biodiesel farm plantation and/or land for such to implement. 14. Mineral ore mines. 15. Sugar Refinery Mills. 16. Ethanol Refinery. 17. Private Islands We also provide full A-Z accessory services for investors, and buyers such as: A.) Personal Investment & Sightseeing Excursions with professional photography and filming. B.) Apartment Rentals, Front Beach Villa Rentals & Car Rentals 1.) Land acquisition, architectural development and approvals. 2.) Complete construction cost calculations and analysis, construction, engineering, and building permit. 3.) Sales & Marketing Strategy. 4.) Resale 5.) CPF cards and Permanent Residence Program. 6.) Tax consulting, accounting, and lawyers & attorneys. 7.) Governmental Contacts & Elite Society local contacts. 8.) Pre- Launch to investors & strategy. 9.) Exit Strategy. 10.) Relocation Services. 11.) Due Diligence, complete analysis of legal documents such as titles and deeds. 12.) Title Insurance, Escrow Accounts and Mortgage Financing for Foreigners purchasing Brazilian property. 13.) Opportunities for joint ventures with other investors. 14.) Financial transactions and strategy. 15.) Off Market Opportunities. 16.) Market Research, Due Diligence, Feasibility Studies 17.) Product Sourcing for Export 18.) Wealth Management 19.) Asset Protection 20.) Full Tax-Haven Services 21.) New Auditing of companies, corporations or any otherwise business entities anywhere in The North East region of Brazil. Enough talking...see for yourself: Examples: http://www.orkut.com.br/ExternalAlbum?uid=4754384024518625082&aid=125.... http://www.orkut.com.br/ExternalAlbum?uid=4754384024518625082&aid=125.... http://www.orkut.com.br/ExternalAlbum?uid=4754384024518625082&aid=125.... http://www.orkut.com.br/ExternalAlbum?uid=4754384024518625082&aid=125.... http://www.orkut.com.br/ExternalAlbum?uid=4754384024518625082&aid=125.... http://www.orkut.com.br/ExternalAlbum?uid=4754384024518625082&aid=120.... http://www.orkut.com.br/ExternalAlbum?uid=4754384024518625082&aid=121.... http://www.orkut.com.br/ExternalAlbum?uid=4754384024518625082&aid=125.... http://www.orkut.com.br/ExternalAlbum?uid=4754384024518625082&aid=125.... http://www.orkut.com.br/ExternalAlbum?uid=4754384024518625082&aid=125.... http://www.orkut.com.br/ExternalAlbum?uid=4754384024518625082&aid=125.... http://www.orkut.com.br/ExternalAlbum?uid=4754384024518625082&aid=125.... http://www.orkut.com.br/ExternalAlbum?uid=4754384024518625082&aid=126.... Warmest Regards from The Land of the Sun, A Chicagoan in Northeast Brazil, Mr. Martin Gajewski Jr. http://www.google.com/profiles/JazMartin http://www.linkedin.com/pub/martin-gajewski-junior/2/4b5/380 http://www.orkut.com.br/Main#Profile?rl=fpp&uid=4754384024518625082 Offshore Investment Consultant & Glenda B. M. Chagas http://www.xing.com/profile/Glenda_Chagas Comes from a Family Real Estate tradition of 25+ years. International Property Broker Skype: brazilrealestate free pc-pc global telephone system download at www.skype.com jazmar...(a)gmail.com brazilrealest...(a)hotmail.com fortalezarealest...(a)gmail.com 55-85-8811-0900 55-85-3264-8155 1-708-354-9688 55-85-8822-0500 Martin Gajewski Junior Offshore Investment Consultant & International Property Broker 55-85-8811-0900 1-708-354-9688 55-85-3264-8155 55-85-8822-0500 skype: brazilrealestate http://www.google.com/profiles/JazMartin Please join and enjoy our free consultation & reference guide to business and real estate focus at : http://groups.google.com/group/investinbrazil
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