The study by consultancy Prospecta Inteligência Imobiliária, published in Brazilian business magazine Exame, ranked Natal as the fifth best city for investing in real estate, both residential, hotel and commercial.
Rather than considering the valuation of real estate by taking into account the average price per square metre, which only reflects sold property values, the researchers investigated the market demand by tracing future trends. This was achieved by using several variables which measured per capita income, education levels and employment, the number of operating companies in the city and the housing deficit.
“Natal has much to offer as a city, with some of Brazil’s most beautiful beaches, ample green spaces and so much sunshine that it is known as Brazil’s ‘City of the Sun’,” comments Luiz Fernandes, CEO of award-winning Brazilian developer Ritz-G5, whose projects are focussed around the city.
“Further creating interest in this growing destination, this latest survey has highlighted the notion that Natal is ripe for investment, especially true within the current economic climate.”
Indeed, properties in and around Natal are cheaper than those in the south, but the weak Real is ensuring that they are even more affordable for overseas buyers. With the Real currently at a 12-year record low against the British Pound, US dollar and Euro, property in Brazil is now around 66 per cent cheaper for those buying in dollars than it was a year ago when the 2014 Real was trading at 2.35 against the US dollar.
Fernandes explains that this is a particularly good time therefore to buy property within the country, especially given that many claim that the Brazilian currency is severely undervalued. As one of the eight largest economies in the world, with strong long-term growth potential, the value of the real is expected to rise in the near future, taking property values with it.