JUNE 2011 |
www.opp.org.uk
ADIT BRAZIL REPORT
BRAZIL | 55 Moving up in the world
The north-east of Brazil is a favourite tourist destination for other Brazilians, and as their collective wealth grows, a number of luxury resorts are being built along the coast to cater for them. OPP caught up with Jorge Chaskelmann, the project manager of Aquiraz Riviera at ADIT Invest 2011.
A
lthough the social housing developments being built as part of the Minha Casa
Minha Vida program are getting a lot of attention, there are a growing number of luxury resorts being build in the north-east to cater to newly wealthy Brazilians who have disposable income for the fi rst time. One such resort is the Aquiraz Riviera Golf Resort, about a 40-minute drive from the centre of Fortaleza. OPP spoke to Jorge Chaskelmann, the resort’s project manager.
What is your target market for this kind of development? We’re looking more at the domestic market because that’s where the strength lies. The economy has gone up, people have more disposable income, and they’re far more willing to travel. It’s the same with our real estate offering - we’re targeting local buyers.
Are you concerned that as Brazilians get even richer in the coming years, they’ll want to take their holidays abroad, making a resort like yours obsolete? There are a lot of people travelling abroad from Brazil, over 10 million now, and I’d say 20 to 25 million have the capacity. But I don’t see that being an issue for the next few years, I think we have a very positive trend with the domestic market right now.
What do Brazilians look for in a resort development? Is it different from what Europeans might want? The basics are the same – they want good hotel facilities, good entertainment, good food, a good pool, and good weather. It’s very similar. Those from Sao Paulo and Rio are much more sophisticated and
more critical, and they now have the ability to compare with resorts in other countries. In terms of the properties themselves, they all love to have a lot of open space. You don’t really have individual living in Brazil, people want space for their families.
Why would people from Sao Paulo and Rio come to Fortaleza on holiday? They have an excellent beach on their doorstep… Brazil is a very big country! They come for different food, a different culture, and a more relaxed atmosphere.
What kind of people are you selling to? Most of the sales have been to
local people, and we’ve been very successful with 95% of the lots sold. 90% go to local buyers, and 5% to buyers from other countries or the other areas in Brazil. For most people it’s a second home, a beach residence, because of the distance from the city. But as Fortaleza grows people will start buying them as primary homes – it’s a growing city and is spreading along the coast. Given the good conditions, we expect a lot of people to make the choice of living here permanently.
How diffi cult is it to build this kind of development in Brazil?
It takes a long time because of all the paperwork, the environmental issues and licensing. You have to be prepared to put in quite some time to get things done. Getting infrastructure in place is expensive – you have to have money. You can’t come here expecting to buy a piece of land, make a nice masterplan and sell it. It doesn’t work like that anymore. The facilities are not that great for real estate, for example interest rates are very high. A group that comes here has to be prepared,
has to be professional, and has to have a solid fi nancial backing otherwise it will not succeed.
In his keynote speech Gary Garrabrant, the CEO of Equity International, called for easier debt in Brazil. Debt in the country is currently at around 4% of GDP, compared to about 70% in the US, although this fi gure is predicted to rise in the coming years as more Brazilians get mortgages. Would you agree that this is something the government should be encouraging? I don’t know, I’m not sure. That’s a view from the guys who created the bubble and it went so crazy with such low interest rates. We have to be very prudent – credit cannot be that easy and accessible.
Where should investors be putting
their money – social housing, or luxury resorts like yours? In the city the return is quicker, resorts are slower but they do pay off too. So if you’re looking for a quick buck, you can go and launch an apartment building. Resorts are still at the beginning but it will grow. People have to have the patience and courage and wait until the tourist boom comes.
How will the World Cup in 2014, and the Olympics in Rio in 2016 affect the tourism market?
Infrastructure is still a problem, but
the World Cup and the Olympics will push Brazil into creating good infrastructure in the cities and airports. These events are not fantastic or profi table generally – they don’t last long, so the hotel and tourism sectors will boom for a week, but the infrastructure will stay on.
Jorge Chaskelmann | (right) of Aquiraz Riviera believes the resort sector will grow
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68