IL Postcard

The Best City Beachfront Deal Right Now

Date: 04/17/2008

Friday, April 18, 2008
Fortaleza, Brazil

Read more about beachfront property in Brazil in International Living Postcards —your daily escape

I’ve just found the last piece of beachfront in this city. Once it’s gone, that’s it; no more beachfront sites to develop in Fortaleza.

In an emerging market like the one on Brazil’s northeast coast right now, you have to pound the pavement to find the best deals. I haven’t seen a RE/MAX sign...they aren’t here yet. Real estate agents are small, one-man operations; there is no multiple-listings service. Big Brazilian developers launch and sell their projects through special invite-only events. When I last wrote to you, I told you how a developer sold out an entire 222-condo beachfront project within 24 hours of his launch event.

Fortaleza is in the middle of a 356-mile stretch of beach, and the city sits on 12 miles of beach...but only a few miles of that is along the boardwalk. It reminds me in many ways of Panama City, except Fortaleza has beach where Panama City has bay. As the boom took hold in Panama City, I followed that market closely. In early 2005, when I recommended ocean-view condos along Panama City’s Avenida Balboa to my clients, they bought for about $1,000 per square meter. Today, they're selling for more than $3,500 per square meter. I expect Beira Mar, Fortaleza’s city boardwalk that runs along the beach, will see a similar price explosion. But unlike Panama City five years ago, the beachfront here is composed of tightly packed highrise buildings. Today, there is very little space to develop along the boardwalk. In fact, I’ve found what I believe is the last beachfront site in this city.

As you walk along the boardwalk, you can see why real estate here is in such high demand. The boardwalk stretches for a few miles—a big, wide place to walk, shop, relax, close business deals, or watch a free concert. Put simply: it’s a really nice place to be. Walkers and joggers from very young to very old pass up and down. Families congregate in the many cafés, while groups of surfers relax over beers after a day in the water. Guided by their master and accompanied by musicians, groups of teenagers practice the ancient art of capoeira. The market bustles, with vendors selling everything from craft jewelry to leather goods. Nightly, I enjoy a stroll along the boulevard or a meal in one of the restaurants that allows me to watch and enjoy the sights and sounds of the boardwalk. The apartment buildings that run along the boardwalk are the most sought-after in the city.

As you walk along here, you see two gaps in the skyline. One is set to be a new hotel. The other will be apartments...the only piece of city beachfront left.

While having lunch with one of my developer contacts, he got a call from his “runner” about these apartments. His runner told him that a major Brazilian builder was getting ready to throw a launch party in the next few weeks to release a condo building on the last site available for development along Beira Mar. Plans for dessert were scrapped, and we went to investigate the site.

Behind nondescript hoarding on a site next to the city’s highest-end condo building, a sales office was being constructed. Developers here usually hold their launch events in specially constructed onsite sales offices. I managed to get past a security guard to sneak a peek of the cleared site. Perfect for a condo project.

When these units are released, I expect they will sell for $2,000 to $2,500 per square meter...and if my intelligence is correct, units will start at around 80 square meters. This is at the top end of the market here. I expect these units will sell out to wealthy Brazilians within 48 hours of launch. I’m set up to get advance pricing and launch details...and will share these on the Brazil Beachfront Webinar (free for readers of IL Postcards...register now).

Ronan McMahon
For International Living

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