Business Brazil

Some savvy investors in Cumbuco have seen the value of their units go up 30% to 40% between the preconstruction and the final sales, usually in less than 14 months. And these preconstruction prices are exactly what I expect on our scouting trip.
Once North Americans discover this town, it's going to boom big-time.

The preconstruction beachfront and oceanview apartments in this town are offered with big discounts, up to 30% for buyers who pay the full purchase price upfront. The list price matches with other real estate I saw in the area, which means that preconstruction discount is a genuine discount.

Word is out and high-class developments are popping up everywhere. A major Portuguese resort and golf course developer, Vila Gale, has just started construction of its golf course. The project, Cumbuco Golf, will include five-star hotels in the 450-hectare site.

Next door, a Spanish group has launched a 990-unit project. The Spanish group's neighbor is a project by a major Brazilian group of 1,400 units. These major developers will seriously raise the bar in the area, and their marketing budgets and muscle will sell Cumbuco to a whole new market.

In five years, this sleepy beach town will be barely recognizable.

Soccer-playing kids will compete for space on the cobblestone streets with foreigners browsing in the shops or on their way to dine in new restaurants that will open during the boom. Golf carts carrying golfers will be as common a sight as dune buggies carrying windsurfers.

Visitors will come in droves to these new resort properties, invading what is now this sleepy little town. Little houses in the town center will be converted to cafés, restaurants, bars, and boutiques. Very soon, they will have a commercial value that they don't have today. Buy one of these little houses in a central location and look for prices to double in the next three years.

As the town develops, more foreigners will want to have it all: be right on the beach and a short stroll to the buzz of the town center.

Beachfront sites within proximity to the town center will be snapped up for their development potential.

I expect beachfront condo prices within the town center to appreciate by 50% over the next three years. Today, you can buy a preconstruction high-end 2 bed condo right on the beach for $160,000. Limited developable sites within the town means that deals like this won't be around for much longer.

Source: Internaltional Living by Ronan Mc Mahon