For a number of reasons now is the time to invest in Fortaleza. Real Estate prices are rising and will continue to rise as the city becomes more and more significant in both the domestic and the international scenario. Prices have, in recent years, increased over 20% per annum.
The world cup of 2014 will be hosted by Brazil. 12 cities were chosen as hosts. Fortaleza is the one closest to Europe. That means major European soccer teams and their legions of followers. This is the kind of exposure that will upgrade even more the tourism in the region and of course, increase dramatically the price of real estate, especially beach property.
Exactly one year before every world cup, there is a tournament in the hosting country, involving all the teams that will play the cup in the same stadiums that will hold the world cup. This is a sort of rehearsal, or a test of the capabilities of the structure before the real event happens so that the organization can evaluate if the projects that were presented to them during the selection of the next host country were really built and if these projects are really adequate to hold such an event as the World Cup . This rehearsal is called Confederation Cup and from the 12 cities that are going to host the actual world cup, only five were chosen to be ready and finished one year before hand and hold the Confederation Cup. One of them is Fortaleza. So, the time to invest is now because in 2013, the world will have its eyes on Fortaleza, all the major infrastructure changes will be completed and the prices of property will be going up more and more.
Fortaleza will host the Confederations Soccer Cup in 2013 along with 4 other Brazilian cities from the south. We are the only city in the North to be chosen for that.
About the infrastructure that will be executed for the world cup. Fortaleza’s project for the world cup is estimated to consume over 9 billion reais (that’s about 4,5 billion dollars). The project includes a major upgrade in the city’s main stadium, the city’s second stadium will be torn down and rebuilt, the metro lines will be doubled, the airport will be doubled, a passenger terminal will be built in the docks to improve service for existing cruise ships and more that will come, roads will doubled and new bridges built, and much more. Most of this money (about 6,5 billion reais) is already in place and the construction works are already starting.
The increase of direct flights to the USA is also starting to increase the amount of American tourists and investors and this will surely boom the touristic economy increasing the demand for hotel beds and short term rentals and push the real estate prices further up. Delta Airlines is already operating a daily direct flight from Atlanta to Fortaleza, TAM has one to Miami and American Airlines also applied to get the permission to start operating in this route. We have seen this happen before and the data shows that the opening up of new air routes is one of the strongest drivers of real estate prices in emerging markets. In Europe this trend is dubbed “The Ryanair effect,” because as soon as budget airline Ryanair announces a new flight route from one of its hubs in northern Europe to a destination in southern Europe, real estate prices immediately increase.
Also it is important to mention the undergoing changes in the city that are easily noticed by any local or frequent visitor. Three major facts are in play here: the boom experienced by Brazil’s economy in the last years, the fact that Fortaleza has become a major destination for foreign investors trying to escape the crisis in their own countries and also a fast growing tourism industry, the city is changing so fast that if you visit every three years you will never see the same town twice.
Fortaleza is growing faster than Brazil’s average. Now that Brazil has become the safest escape for the world crisis and Fortaleza that always had international vocation especially with Europeans has become a major attractor of foreign investment.