Buyer`s Guide to Natal, 2015

Transcription

RITZ-G5’S
BUYER’S GUIDE TO NATAL
NORTH EAST BRAZIL
2015
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WELCOME
Brazil has attracted a lot of attention on the global scene due to its economic and real estate boom over the last
decade. In recent years Brazil has become one of the most attractive countries to invest in amongst international
property buyers. Its macro-economic situation has become far more stable and despite the temporary current
economic downturn, Brazil has still progressed vastly in its economic and real estate development during this
time period.
Notably, the Northeast of Brazil is an attractive area to real estate buyers, offering low property prices coupled by
an insatiable demand for quality affordable housing and beautiful beachfront properties. The Northeast is a high
growth region of Brazil with a faster GDP growth rate than Brazil as a whole. In fact, in 2014 GDP of Northeast
Brazil grew by 3% whilst GDP for Brazil as a whole grew only by 0.1%.
Amongst the Northeast’s strongest industries is tourism, thanks to the region’s sunny climate and an abundance
of stunning, white sand beaches, whilst other traditional industries in the region are based on coffee, sugarcane,
livestock, manufacturing and textiles, followed by oil and wind energy which are also currently developing.
Natal is the capital city of Rio Grande do Norte, one of the states comprising the Northeast and in recent years
the city has attracted a great deal of interest from international property investors. Companies including property
developer Ritz-G5 (based in Natal) have expanded tremendously over with high numbers of international
investors showing interest in their developments.
Offering a year-round sunny climate, abundance of beautiful beaches, a noticeable increase in the wealth of its
population, followed by a variety of infrastructure and real estate developments, Natal is quickly becoming one of
the most popular choices amongst international buyers.
We sincerely hope that you will enjoy reading our ‘Buyer’s Guide to Natal 2015’, and that it will hopefully assist
you in finding out more about Natal as a place in which to live, visit and invest. We hope that this publication will
also assist you in your research and due diligence for property investment in Natal.
Nina Booty,
Research Analyst, Ritz-G5
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NATAL: GEOGRAPHY, POPULATION & ECONOMY
Natal is the capital and largest city of Rio Grande do Norte, a Northeastern state in Brazil. Located on the Atlantic
coast, Natal is enriched by an abundance of beautiful white, sandy beaches, historical sites, and nature areas. Natal
is also known as the ‘City of Sun’ thanks to its 3,000 hours of sunshine every year and pleasant climate averaging
27 degrees Celsius.Thanks to its wealth of sand dunes and extensive offering of dune buggy rides along the sandy
beaches, Natal is also known as the ‘City of Dunes’. Natal and Rio Grande do Norte are also famous for their
clean air, which is, according to NASA, second only to the Antarctic in terms of its purity.
As of July 2012, aaccording to the Brazilian Institute of Geography and Statistics (IBGE) Natal had a total population
of 950,820, with a total of around 1.3 million in the Greater Natal area.ⅰ Over the last 20 years Natal saw around
a 32% increase in population, of which about 13% was over the last decade.
Natal is the Brazilian city geographically closest to Africa and Europe. Thanks to its strategic position, its tourism
boom, strong economic growth and enormous potential, the local government brought forward a large
infrastructure project in Natal - the opening of the new Greater Natal International Airport, São Gonçalo do
Amarante–Governador Aluízio Alves International Airport.The new airport opened in May 2014 (located 25 km
away from Natal city centre), with the passenger capacity increasing to 6.2 million passengers per annum, making
it the largest airport in South America. The new airport also replaced the previous international airport Augusto
Severo in Parnamirim, which carried 2.4 million passengers per annum.
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RITZ-G5 | BUYERS GUIDE TO NATAL 2015
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Via its international airport, Natal is well connected with many large Brazilian cities and also operating direct
international flights (from Europe, TAP Portugal flies directly to Natal from Lisbon). The airlines that operate
various flight routes to Natal include: TAP Portugal, TAM Linhas Aéreas, GOL Linhas Aéreas and Azul Airlines.
Going forward, it is highly likely that a number of international airlines will be taking up new direct routes to
Natal, taking advantage of its newly built airport and developing further the city’s potential. A good example of
this is the new Linea Aerea Meridiana Fly route between Milan (Italy) and Natal, which is set to start operating
in September 2015.
Natal was one of 12 host cities of the 2014 FIFA World Cup in Brazil and it was the ‘opening’ event city with the
first football games taking place at the newly inaugurated stadium, Arena das Dunas (capacity 39,971 seats).
Natal is nowadays one of the eight most visited cities of Brazil. Unlike other large cities of the Northeastⅱ of
Brazil, such as Recife or Salvador, Natal does not have a particularly large historical centre or an exceptionally
vivid nightlife. Nevertheless, Natal has plenty of places of interest to visit and it is regarded as being significantly
calmer and safer than other large cities in the region, enjoying a superior quality of life. Many wealthy Brazilians
and foreigners alike have holiday homes in the city. As previously mentioned, Natal’s population has been
growing in recent decades thanks to the improved quality of life and the economic expansion of the city, which
have both attracted migration from the largest cities in South of Brazil, such as Rio de Janeiro, São Paulo, as well
as other areas.
In terms of the local economy, tourism is the most important industry of Natal, attracting Brazilians, Europeans
(from Spain, UK, Scandinavia, Germany, Portugal, Italy and France), and U.S. tourists alike. Natal’s tourism has
been growing rapidly in importance (between 2002 and 2005 there was a 134% growth in foreign tourism
in Natal compared to 48% for the whole of Brazil). This is a due to the accessibility and proximity of Natal
to Europe and the US and Brazil’s rising appeal for foreign tourists. Natal is also one of the leading cities in
Brazil in terms of international investments and the city looking to benefit enormously from the massive future
investments on the coastline.
In terms of the economy, the oil industry is also very strong as Rio Grande do Norte is the second largest oilproducing state in Brazil. Thus, Natal is a relevant administrative centre for the oil industry. The fishing industry is
also strong (shark cartilage being a major export to Japan) as is the cultivation of tropical fruit, especially mangos,
guavas, and cashews (the fruit and the nuts).
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NATAL: A HISTORY
Natal was built on the right bank of the Potenji river at the point where the river meets the Atlantic. The soil is
very sandy, with dunes and bays protected by reefs that appear all along the shoreline.
Natal’s history dates back to December 1597 when a fleet commanded by Jeronimo de Albuquerque arrived at
the Potenji river, with the task of founding a new city and building a fortress to protect the Portuguese settlement
and keep away the French who were trying to trade with the Potiguares (native Indians). At the same time, a
group led by the governor of Pernambuco, Manuel Mascarenhas Homem, arrived by land. On January 6th 1598,
these men began to build the Fortress of the Three Wise Kings. On December 25th of 1599, a small village was
founded one mile away from the fortress and the village was named Natal. Natal is the Portuguese word for
Christmas and the place was named after the day it was founded.
The city developed very slowly. The sandy soil of Natal was not adequate to cultivate sugar cane, which was the
main source of wealth which the Portuguese exported from their colony at the time. In 1633, the Dutch took
over the city and the fortress was renamed Keulen, remaining so until 1654, when the Portuguese reclaimed it.
In 1817, provinces from the Northeast attempted a revolution (Revolucao Pernambucana), trying to gain
independence from Portugal. However, the revolution failed and independence was proclaimed in 1822. Natal
was much less of a colony than the rest of the country and this factor, alongside the American presence during
World War II, most likely contributed to making Natal one of the most libertarian regions in Brazil. The state was
the first to abolish slavery, ten years before the rest of the country;
whilst the first Brazilian woman to take office as a Mayor was
elected in a small city near Natal.
In the beginning of 19th century, Natal was still a small village,
divided into two main regions: Cidade Baixa (Lower City),
close to the pier where commerce was concentrated
and the Cidade Alta (Upper City), on top of a hill, which
had the main church and the government office. Only
in 1922, during the government of Pedro Velho,
the city finally began to modernise. The ancient
atmosphere was maintained until 1930 when
urbanisation started. As urbanisation was
comparably recent and relatively slow, this
allowed for better planning of streets and
traffic flow unlike in the bigger cities in the
south or in Recife for instance. Thus, Natal
has succeeded in keeping a calm and relaxed
atmosphere, coupled with the comfort of a
modern and larger than average Brazilian city.
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During World War II, Natal saw rapid changes in its lifestyle, when the airport was used to harbour a military
basis which supplied the needs of Allied troops in the north of Africa. Hence, World War II gave an impulse to
the growth of Natal and surroundings. Before the War, Natal had 40,000 inhabitants; after the war, not only had
the population doubled to nearly 80,000 inhabitants but the city also had improvements in infrastructure (roads,
housing etc.) and the airport of Parnamirim was constructed with the help of US government funding. Parnamirim
field was the largest US basis outside American territory at the time.
Natal has strong historic connections to the US and thousands of American soldiers spent their war years in Natal.
It is estimated that during WWII between 3,000 and 5,000 Americans were located in Parnamirim. Also, tens of
thousands of Americans and British passed through Natal in transit. Parnamirim was the busiest airport in the
world; flights were taking off and landing every three minutes.
The Americans changed profoundly the way of life in Natal. Besides bringing new products (Natal was the first
Brazilian city to see chewing gum), American democratic and libertarian views have influenced the life in Natal
to date.
After the Second World War, much of the city’s wealth was derived from exports through the port where the
main items were xelita, a tungstenium ore, cotton and carnauba wax.The main industrial sectors at the time were
textile and civil engineering. However, in recent decades, tourism has developed into a major industry in Natal.This
is much owed to Natal’s perfect summer climate all year round and its wealth of naturally stunning beaches. The
temperatures in Natal range between 20 and 33 degrees Celsius and the sun shines all year around but the heat
is alleviated with the pleasant Alisium winds, creating the perfect weather for holidaymakers.
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NATAL: KEY AREAS
Natal is geographically divided into four zones:
North:This is the industrial and working class zone of the city which is now the most populated area of Natal.
Redinha beach is located here, providing some great views of the city, coupled by a local feel.
East:
The East of Natal has the historical centre and important sights such as Forte dos Reis Magos and Ponte
de Todos. The beaches here are Praia do Meio and Praia dos Artistas, visited by both local residents and
tourists. There is also the entrance to Parque das Dunas, the second largest urban park in Brazil.
South:
This is the most affluent zone of the city and the area that is most visited by tourists. The famous Ponta
Negra beach is located here as are most upmarket hotels, shopping malls and restaurants
West: This is the poorest area of Natal (some parts of it remain rundown). The western zone has the intercity
bus terminal that can be used to reach other cities, e.g. Tibau do Sul
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Petrópolis and Tirol
Petrópolisⅲ (meaning City of Peter) is one of the most exclusive and exciting Natal’s districts to live, work and
play.This modern, upmarket area of Natal is located in the East Zone of the city. Offering a superior quality of life,
this district of Natal was created to house the elite Brazilian class and is emerging as one of Brazil’s most exciting
and after-sought districts.
Designed for the elite by Greek architect Giacomo Palumbo, Petrópolis combines fashionable boulevards and
boutique shops with trendy coffee bars and restaurants. Its high value landscape elements, excellent conditions for
infrastructure and public services, central location and easy access to the city makes Petrópolis one of the highest
priced real estate areas in North East Brazil. Rental opportunities in this upmarket area are rare and demand is
soaring, which means it commands some of the highest property acquisition and rental prices in Natal.
Together with the neighbouring district of Tyrol, which is the second most attractive area to live in Natal,
Petrópolis and Tyrol continue to attract the elite classes, commanding the highest real estate prices in the city.
Both Petrópolis and Tyrol have the highest concentration of higher than average incomes in Natal. In particular,
the average incomes in these two districts exceed Natal’s average income by 350%, while exceeding the regional
East Zone average by 240%.
Petrópolis is most expensive residential area in Natal, thanks to the district’s vast amount of attributes such as:
excellent commuter links into the city, its close proximity to Brazil’s best beaches, excellent infrastructure and
public services. Thus, residents here enjoy a high status and a superior quality of life, for which many consider this
area to be the best place to live in Natal.
Examples of current house prices in Petropolis and Tirol include R$4,760 per m² for a new-built 3-bedroom
apartment of ca. 100m², to R$6,362 per m² for a new-built 4-bedroom apartment of ca. 500m² size.
In Petropolis, Ritz-G5 is building the Costa Azul project. Inspired by the Atlantic Ocean, Costa Azul or ‘Blue
Coast’ is a new, modern and luxurious 168-apartment development. Its prime hilltop positioning in Petrópolis
will enable residents to enjoy captivating beach and Ocean views. Costa Azul project presents a modern
3-tower apartments design and will offer its residents a wide range of first class amenities including a swimming
pool, gym, private bar and spa.
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Lagoa Nova
Lagoa Novaⅳ is an upmarket area of Natal, located in the South Zone with a population of around 35,800
residents. To the north it borders with the districts of Tyrol, Lagoa Seca and Alecrim; to the south the districts
of Candelária and Capim Macio. Lagoa Nova contains some of the most important avenues of the city: Av. Sen.
Salgado Filho, Av. Prudente de Morais and Av. Bernardo Vieira. Rio Grande do Norte Administrative Centre (local
government) is located in this district as is Arena das Dunas, the newly constructed football stadium.
In addition, other important buildings in Lagoa Nova include: Cathedral de Fé (HQ Universal Church of Rio
Grande do Norte), two university Campuses, Campus da UFRN and Campus Salgado Filho da Universidade
Potiguar, and two large shopping centres, Shopping Midway and Natal Shopping, amongst other buildings.
Lagoa Nova is also a business district area of Natal with a predominant presence of legal firms. Ritz-G5’s Plenarium
office tower building is located here, a 19-storey mixed office and retail space building, which was built at highest
point of Lagoa Nova. Neighbouring tenants include: Des Forum, Miguel Seabra, Fagundes, IRS and TRE.The building
comprises 120 parking spaces, 3 elevators, a bookstore and a restaurant.
House prices in this district include new-built flats from R$4,370 per square meter for a 4-bedroom, 119 square
meter apartment to R$5,843 per square meter for a 4-bedroom 166 square meter apartment.
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Ponta Negra district
Ponta Negra (meaning Black Tip) is the most famous tourist hotspot in Natalⅴ. The beach of Ponta Negra is
about 4 km long; enriched by Morro do Careca, the most famous landmark of Natal (see below Natal: Best
Beaches). Walking north, there is about 2km of Av. Erivan Franca with a plethora of bars, restaurants, hotels
and some small shopping galleries. At the end of the avenue, there is a further 2 km walkway, surrounded by
hotels. Ponta Negra borders with Capim Macio, Neopólis and Nova Parnamirim districts (the latter is located in
Parnamirim municipality).
In the past, the Ponta Negra district used to be home for fisherman and workman, however in the late 1980s and
early 1990’s it started to transform into a tourist area, with travel businesses rapidly taking over. Since the late 90s,
foreign investors, notably Europeans have started to pour money into the area and tourism-related businesses
have flourished.
In terms of hotel construction, a vast amount of medium and small hotels were built nearer the beach, whilst
bigger hotels were built alongside adjacent Via Costeira. As expected, with the development boom and almost
no available plots remaining for sale, the prices in Ponta Negra soared. However, with the global financial crisis,
international investments fell in this paradisiacal area of the city and a lot of construction stalled. The prices
experienced a natural adjustment, dropping to more reasonable levels. Nevertheless, with the global crisis easing,
the construction community in Natal returned to invest
in the area from H2 2010. A number of major real estate
developments have kicked-started construction since then,
developing housing and commercial properties geared
for a Brazilian audience in addition to foreign buyers.
Ritz-G5 saw a new hotel investment opportunity in
Ponta Negra and is building Mercur Natal, a luxury,
252 suite, 4-star hotel for business and holidaymakers elite.This development occupies the last
available plot on the prestigious Via Costeira
and offers excellent amenities including a
business centre, private swimming pool
and 24-hour concierge. At 43 metres
above the sea level, 300 metres from
Ponta Negra beach and on a 30
degree elevation, hotel guests will
be able to enjoy stunning direct
views towards the Atlantic Ocean,
Ponta Negra beach and the Brazilian
landmark, the Morro do Careca (Bald
Man’s Hill), see photo below.
Following its completion, Mercure Natal will
be managed by Accor, one of the biggest hotel
groups in the world with 3,500 hotels and 450,000
rooms spanning 92 countries. Works on this project
are underway and completion is set for Q1 2017.
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In terms of house price guide in Ponta Negra, residential house prices in this area currently include examples
from R$2,560 per m2 for 330 sqm 4-bedroom house, to R$4,117 per m2 for a 3-bedroom house of 340 sqm
size. These prices should be seen as a rough guide as the actual price depends on the particular location of the
property, age, design, quality, amenities in the area, views and other factors.
It is also notable that apartments are more expensive in Natal’s city centre than houses due to a housing market
shift that is taking place. Wealthier residents of Natal are changing from owning houses in the city to buying new,
modern apartments in the city centre, however, out of the city centre, the situation is reverse with houses in
condominium developments more popular than apartments.
Via Costeira
This is one of the most important avenues in Natal where the main hotels are concentrated. Although its official
name is Avenida Dinarte Mariz, it is better known as Via Costeira (meaning ‘Coastal Way’). Via Costeria is highly
visited by tourists,and is seen as a continuation of Ponta Negra beach. It consists of a 10 km coastal highway,
leading up to the Meio Beach.
The beachside is occupied by luxurious 4 and 5 star hotels, where Ritz-G5’s Piramide hotel project is located, and
some restaurants. The other side is completely occupied by the Parques das Dunas (Dunes Park) - a large green
area preserved by IDEMA.
Although in a public area, the beaches in front of these hotels are visited almost exclusively by hotel guests making
them the quietest beaches in Natal.Via Costeira was built in 1985 by the then Governor Jose Agripino to connect
the urban beaches to the south of Natal, initiating the city’s tourism project with the construction of the first
hotel in the Via Costeira, the Natal Mar Hotel, owned by local businessman Sami Elali. Sami Elali became Ritz-G5’s
Chairman when Ritz Property and G5 merged at the end of 2014.
Via Costeira connects almost all the urban beaches of Natal, apart from Redinha Beach. In Redinha beach,
Newton Navarro Bridge was built which connects Via Costeira and the city centre so that all urban beaches in
Natal are connected by a path of easy access.Via Costeira is one of the seven points of the “Special Area of Tourist
Interest” from the coast, so the beach is guarded 24 hours a day by some 23 cameras.
Piramide Hotel Natal is another Ritz-G5 project located in the exclusive Via Costeira. It is an existing 315-bedroom
beachfront hotel with conferencing facilities, situated 4 km from Natal’s city centre. The hotel comprises five
swimming pools, rooftop terrace and fitness centre, swim-up bar, steam room, spa tub and children’s club facilities.
The hotel, in its prime, was considered the best hotel in Natal due to its unrivalled location and facilities. However
in recent years due to lack of funding the hotel has not looked its best and Ritz-G5 saw the opportunity to
purchase and return the once grand hotel back to its former glory. Ritz-G5 has closed the hotel and it is currently
under refurbishment. Once finished it will be handed over to Accor (one of the largest hotel chains in the world)
to administer over the next 20 years under their ‘Grand Mercure’ brand. The refurbishment is scheduled for
completion in Q1 2016.
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Parnamirim
Parnamirim is a municipality in Rio Grande do Norte, which belongs to the Metropolitan Region of Natal
(located south of Natal), with a population of 214,199 (2014). According to the Brazilian Institute of Geography
and Statistics (IBGE), it is the third most populous city in the state Rio Grande do Norte.
Parnamirim has been witnessing intense economic and population growth since 2000. Its convenient location and
good motorway connections to Natal have been the primary reasons for the rapid growth. Growth has been
even more dramatic from 2010, particularly in the real estate sector, becoming Natal’s property hotpot and a
genuine extension of Natal. Remarkably, its urbanisation rate reached 100% (in 2010), ranking Parnamirim as the
most urbanized city of Rio Grande do Norte.
Parnamirim used to be home to Rio Grande do Norte’s main international airport, Augusto Severo, from its
creation until its decommissioning in 2014 when the new airport was built ahead of the 2014 World Cup in Brazil.
Parnamirim has strong historical links to World War II and the United States due to its location and global strategy
of the Allied forces during the war. Sights such as the largest cashew tree in the world, the beaches Cotovelo e
Pirangi do Norte and the hosting of events and concerts during the high season, make the city one of the state’s
major tourist destinations.
Parnamirim and Nova Parnamirim district within the municipality are seen as one of most up-and-coming
residential areas in Greater Natal. And here Ritz-G5 is building Majestic Village. Majestic Village consists of a soughtafter serviced land plot condominium development, set across 75 hectares. It was designed to appeal to the
domestic market and Brazil’s middle and upper class population, which is over 90 million and rising. Using an
impressive build density of only 34%, Majestic Village combines beautifully landscaped gardens with impressive
facilities, including swimming pools, tennis courts and club, volleyball courts, football pitches, a children’s play area,
a gym, a stunning feature river and a club house. Majestic Village is currently under construction, with entrances
complete as of April 2015.
House prices of new-built properties in Nova Parnamirim range from R$2,106 per square meter for a 4-bedroom,
356 square meters house in Green Club condominium to R$4,800 per square meter for a 5-bedroom, 375
square meters house in Bosque dos Poetas condominium.
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NATAL: THINGS TO DO & PLACES TO VISIT
Natal is frequently used as a base for exploring not only the capital itself but the wonderful state of Rio Grande do
Norte. Famous beaches of stunning beauty in Rio Grande do Norte and Natal include Pipa, Baía Formosa, Barra
do Cunhaú and Genipabu, as well as lakes such as Carcará and Coca-Cola, all of which are reasonably close. The
most famous beach in Natal that is located at the heart of the city centre - Ponta Negra.
Natal also boasts many tourist attractions and is famous for its natural beauty such as the crystalline waters of
Maracajaú and the largest cashew tree in the world. Natal is furthermore also known for the historical monuments
and buildings including Forte dos Reis Magos, Alberto Maranhão Theatre and Newton Navarro Bridge.
Forte dos Reis Magos (Fortress of the Three Wise Men), is a fortress located in Natal and was the first milestone
of the city, founded on 25 December 1599. It was built on the right side of the bar of the Potengi river (today near
the Newton Navarro bridge), receiving its name after the construction commencement date (6 January 1598).
Teatro Alberto Maranhão is located in the city of Natal and is a monument listed by the Institute of Historical
and Artistic Heritage of Rio Grande do Norte. It was designed by the engineer José de Berredo and built in 1904
(the construction lasted six years), opening under its original name ‘Carlos Gomes Theatre’.
During the second government of Alberto Maranhão, the theatre closed for renovations, re-opening under a
different name, Gran-Campañia Española de Zarzuela, Opera y Opereta Pablo López in 1912.
The theatre was re-named to its current name Teatro Alberto Maranhão in 1957 under then Mayor Djalma
Maranhão. The final renovation of the theatre was performed between 1959 and 1960.
The Newton Navarro Bridge is one of the biggest cable-stayed bridges in Brazil, located in the city of Natal. It
connects Natal’s North Zone and the cities of the north coast to the South Zone and other districts of the city
crossing the Potengi River. It connects North Zone inhabitants to the city centre, eases the usually heavy traffic in
Igapó bridge, and improves the access to the new Greater Natal International Airport. It is named after Newton
Navarro, an important local artist.
Natal’s historical centre includes colonial architecture, Neoclassical, Art Deco and Modernist and spans from
the Cidade Alta and Ribeira districts to historical buildings in Tirol and Petrópolis (the oldest parts of the city).
Petropolis and Tirol have characteristics of Brazil’s early centuries evidencing influence of Portuguese colonies.
The historic center is characterised by narrow streets, which remain a feature of irregular urban layout of
Portuguese colonisation.
Alberto Maranhão Theatre
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Rua Chille
one of the oldest streets in Natal
Newton Navarro Bridge
NATAL: BEST BEACHES
As previously mentioned there are many beaches that are very famous in Natal and Rio Grande do Norte, which
is well-known for its beauty. Some of the most famous beaches include Ponta Negra, Pipa and Genipabu.
Ponta Negra beach (meaning Black Tip) is the most famous city beach located at the heart of Natal. Morro
do Careca (meaning ‘Bald Hill’) is a large sand dune and an iconic landmark of the city, located at a south
boundary of the beach. Via Costeira is its border at the extreme north, connecting Ponta Negra with several
other beaches of the city, such as Areia Preta and Praia dos Artistas. The beach has shops, hotels, restaurants,
bars and nightclubs on offer.
The sand itself is lined with huts called “barracas” which serve food and drinks to beach visitors night and day.
The village of Pipa is part of Tibau do Sol distric, located 80 km from Natalⅵ.
Situated in the biggest ecological sanctuary in the state of Rio Grande do
Norte. Pipa Beach was chosen by "Guia 4 Rodas" (the most respected
travel book in Brazil) as one of the ten most beautiful beaches in Brazil.
Pipa became famous in the 80’s thanks to the surfers who discovered
its delights.
Home to dolphins and turtles, the village of Pipa has been known
under several names through history but finally was named
after Pedra do Moleque (seen at the furthermost point of
Praia dos Afogados), which at a distance, looked like a barrel
of wine or spirits.
In addition to its breathtaking scenery, surf and opportunity for
adventure, there is a wide offering of boats and canoes, buggy and
horse rides and walks along trails through the Atlantic forest. Pipa
beaches offer a selection of bars, shops, restaurants and hotels. Nightlife
in cosmopolitan and lively Pipa is an attraction in itself with many young
people from all over the world travelling here to enjoy the nightlife in
addition to the stunning beauty of the beaches.
The beaches of Pipa offer a combination of attractions for all tastes and styles. Difficult to choose amongst these
options, the best way is to try each one: from the cliffs which shelter varieties of vegetation, to calm seas for
swimming, or choppy seas for surfing, strong winds for sailing, natural pools with coloured fish, long stretches of
tranquil beaches for walking, or small bays for contemplating visiting dolphins and marine turtles. There are 12
beaches in Pipaⅶ, of which a few are pictured on the photographs below.
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Genipabu beach
Genipabu is a beach is around 25 km north of Natal city centre with a complex of dunes, a lagoon and an
environmental protection area (APA), making one the most beautiful postcard sceneries of Rio Grande do Norte.
The dunes of Genipabu are transient because the hard winds of the Rio Grande do Norte coastline move the
sand from one point to another, shaping the landscape.
Genipabu beach is often used for adventures with buggy and dromedary camel rides. There is also ‘Esquibunda’
or sand boarding that is played in the dunes around the lake. Genipabu Beach gained popularity because of
these dune adventures and exhilarating buggy rides where experienced drivers take tourists for a thrilling roller
coaster ride across the wavy dunes. Finding a buggy and the drivers is very easy with prices from R$300 or more
(depending on duration).
Once you have chosen a buggyⅷ, the driver will then ask you if you want your ride “with or without emotion”. If
you want your ride “with emotion”, the driver will bring you up a very high dune and give you a wild ride down.
The driver can drive as wild as safety will allow.This can include at breakneck speed, tight curves and some jumps,
all of which will make you think that you’re not going to survive the ride. Or you can choose to ask our driver
to drive slowly (“without emotion”). This mode will give you a more relaxing ride and more time to take in the
marvellous view of the beach and dunes. The Tourist Board allow only certified drivers to drive in the dunes and
tourists must ensure that the driver hired is professionally licensed to ensure maximum safety.
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Muriú Beach
Muriú is an idyllic beach and fishing village located on the northern coast of Rio Grande do Norte, 28 km north
of Natal, in the municipality of Ceará Mirim. Ritz-G5’s Dunas De Muriú project, which will comprise 250 luxury
apartments offering spectacular Atlantic Ocean views, is located on this beach.This idyllic, paradise offers beautiful
white sand, immaculately clean sea waters, lagoons and reefs and is surrounded by palm trees.
Visitors can reach Muriú by travelling on the main BR 101 road (for completely paved access), otherwise Jacumã
beaches, Puerto Mirim and Maxaranguape bar also provide access to Muriú.Visitors who prefer to travel by ferry
and wish to admire the coast of Natal, will need to cross the Ceará Mirim River, where the average cost of ferry
round trip is only R$25.
Muriú stands out from its neighbours due to the fact that this area is a popular vacation destination with holiday
homes and the possibility to rent a home near the beach. Several beach restaurants are present, of which the
majority specialise in seafood and lobster, giving customers a quality service at affordable prices.
Attractions in the area include buggy rides through beautiful dune landscape hence, this beach is a ‘must stop’
for buggy ride tourists. This perfect looking beach also enchants tourists with its unusually peaceful and quiet sea
waters and is ideal for swimming. One of the many attractions in Muriú are the natural pools with coral formations
and these can be found about one kilometre away from the sea. Scuba diving is popular and there is also the
famous “Buraco da Velha” place (“the Old Hole”) visited by scuba diving practice lovers. Moreover, Muriú beach
is famous for lobster fishing.
Birds called plovers migrate to this beach between the months of October and March. They travel all the way
from the United States and Canada to feed on this beach during these months. Due to the fishing industry of
Muriú, there are often many rafts, small boats and dragnets out in the sea.This is a typical fishing village that tourists
have discovered and created a ‘paradise in the tropics’.
Maracajaú beach
Maracajaú (Tupi) is a community and beach located in the Brazilian city of Maxaranguape in Rio Grande do Norte,
about 50 km from Natalⅸ. With a population of approximately 2,000 people the main source of income is fishing
and tourism.
Maracajaú is known for coral formations called “Parrachos de
Maracajaú” located to 7 kilometers of the coast that form natural
pools of crystalline waters.
On the beach itself, there is a water park called Manoa Park.
Muriú Beach
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23
Baía Formosa
Blessed with extreme beauty and wild nature, the city of Baía Formosa is located on the southern coast of Rio
Grande do Norte, 94 kilometres from Natal (Natal is again closest to fly to as there are 110 kilometres to João
Pessoa and 220 kilometres to Recife).ⅹ
The main attraction is its natural beauty. It is possible to find about 26 kilometres of semi-deserted beaches
surrounded by 2,365 hectares of Atlantic rainforest and lush mangroves. The Mata da Estrela, a native Atlantic
rainforest shoreline reserve, with lakes, hiking trails, exuberant flora and fauna, is an attraction which should not be
missed (tours and visits are restricted due to preservation by the State a Private Reserve of Natural Patrimony).
The Araraquara Lake is also known as the ‘Coca-Cola Lake’ because of its dark coloured waters, a pigmentation
caused by tree roots and the chemical composition of its iron and iodine-rich soil.
The waves of the region are considered to be very good for surfing. There are three notable rivers along the 26
kilometres of coastline: the Guaju, Sagi and Cunhaú rivers. Considered the most beautiful of all the beaches is
the Praia dos Olhos D’Água (Spring Water beach), which received this name due to the fresh water springs that
emerge from the sand. At this totally deserted beach one can hear the constant sound of the swell, creating its
own musical scale. Coqueiral Beach at Morro da Cotia and Dolphin Beach are closer to the small town center
of Baía Formosa.
Baía Formosa
Coca-Cola Lake
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25
Barra do Cunhaú
Barra do Cunhaú
Barra do Cunhaú is located in Canguaretama on the southern
coast of Rio Grande do Norte, 75 kilometers from Natal. It is
very small and quiet and a safe place to live having an extremely
low crime rate.
The beaches in Barra do Cunhaú are calm and there are extensive parts
of nearly deserted sand beaches which combined with a river flowing into
beach, makes one feel like in paradise. In Barra do Cunhaú one can choose a
slow river bath in Curimataú waters or surfing in Pontal harbour.
Barra do Cunhaú is also an ideal place to practice kiteboarding and windsurfing both in the river and on the beach.
Carcará Lake
Lagoa do Carcará (Carcará Lake - the name originates from a common bird of prey in the region - a caracará)
is considered one of the most beautiful places in Rio Grande do Norte and is located in the municipality of
Forest Nísia, only 40 km from the capital Natal.The lagoon is part of the “Routes of the Waters” but it is not well
known by the government and consequently fewer tourists know about it. Access is somewhat more challenging
however determined visitors will enjoy the enjoy beauty of this lake as their reward.
Carcará Lake has extremely clean and its clear waters form part of the
system “Lacuste Bonfim”, which is composed of the Round lakes (including:
Boágua, Arituba, Licorice, Ferreira Grande and Vulture), rivers Pium and
Trairí and the coastline of the Atlantic Ocean.
The lake’s edges afford large areas of shallow water which enables
visitors to enjoy long baths in a warmth and pleasure. For tourists
who wish to be more active, the Carcará Lake is also a good
place for windsurfing, with kayaks and stand up paddle boards
that can be rented from the local merchants.
Other lakes to visit in Rio Grande do Norte of spectacular
beauty and convenient distance from Natal are: Jacumã Lake,
Arituba Lake, Pitangui Lake, Guaraíras Lake and Bonfim Lakeⅺ.
Carcará Lake
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NATAL: OTHER ATTRACTIONS
Parque das Dunas
Parque das Dunas
Natal boasts the second largest urban park in Brazil, Parque das Dunas.
Also known as Bosque dos Namorados (Valentine’s Woods), it is a 1,172
hectare reserve of Atlantic Forest and dunes in the heart of the city.ⅻ
Carnatal
Natal has the largest ‘Micareta’ⅻⅰ or off-season carnival in Brazil,
called Carnatal that is held annually in December. Like other
micaretas, Carnatal is different from the samba dance school
parades popular in Rio de Janeiro. The central feature of a
micareta is a large truck called a “trio elétrico”, which is
wired with loudspeakers and has a band performing on
the trailer. The truck drives slowly along the streets
and the crowd follows the truck singing, dancing, and
jumping to the sound of the music. To be allowed
to follow the truck, one must buy admittance to
one of the several ‘blocos’ (‘bloco’ is an enterprise
which obtains permission to participate in Carnatal,
hires the band, sells admittance and controls access).
World’s largest cashew tree
The largest cashew tree in the world is located near the
coast in the neighbourhood of Pirangi, south of Natal’s city
centre.This tree has a circumference of 500 metres and occupies
an area of 7,300 m², making it 70 times the size of average cashew
trees. The tree entered the Guinness Book of Records in 1994.
Carnatal 2014
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NATAL: A SHOPPING PARADISE
Natal Shopping Center (Av. Salgado Filho, 2234)ⅺⅴ is the oldest shopping centre in Natal which opened in
1992. The centre is located around 10 minutes’ drive from Ponta Negra beach (or 15 minutes’ drive from Praia
do Meio).
For several years Natal Shopping Centre enjoyed the status of being the only large shopping centre in Natal. The
centre is built across two floors, accommodating 181 shops and two food-courts totalling 25 restaurants.
Natal Shopping Centre underwent a major refurbishment of the first floor in 2009 and a new food-court was
opened in 2010 bringing additional well-known retail brands to the centre. A large extension of the second floor
was done in 2012, bringing an additional 66 stores. In 2013 a leisure extension was completed with Cinépolis
opening a 5-screen cinema accompanied by additional shops.
The centre’s anchor tenants today are C&A, McDonald’s and Brazilian retailers Lojas Americanas (domestic
appliances), Renner (fashion) and Saraiva (telecoms and digital appliances) amongst others. The centre has offers
1,500 parking spaces (increased from 900 spaces in 2012).
Praia Shoppingⅹⅴ
Opened in 1997, the Praia Shopping (Av. Eng. Roberto Freire, 3132) has around 160 stores across various retail
sectors and restaurants.The shopping centre serves the residents of the southern area of Natal and tourists (the
resident in this catchment area have the highest income per capita in Natal).
Praia Shopping enjoys an excellent location that is relatively close to Ponta Negra and it is possible to walk there
however it is easier to travel by the free shopping centre bus or car.This is one of the busiest shopping centres in
Natal and certainly the one with the highest concentration of tourists due to its location. The number of visitors
reaches around 600,000 per month.
Praia Shopping offers a wide range of shops and restaurants, a Citizen Central,
7-screen Multiplex cinema including 3D technology, in addition to money
exchange offices, post office, lottery and tourism agency, bank retail units,
and a large Lojas Americanas taking 1,200 square meters. Other famous
retailers include: Habib’s, McDonald’s Sobremesas, Casa do Pão de Queijo,
Giraffas e Bebelu.
Some restaurants and bars in and around Praia
Shopping stay open late especially on weekends,
making it one of the popular afterhours
meeting points.
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Midway Mall (Av. Bernardo Vieira, 3775)ⅹⅵ is the largest shopping centre in Rio Grande do Norte state and one
of the largest in Northeast Brazil. Midway Mall opened in 2005, in the Tirol district of Natal. The shopping centre
has a floorspace of around 930,000 square meters spread across 3 floors, accommodating 300 shops.
Initially, the centre opened on two floors with structures ready for the third floor.The first extension was complete
in April 2009, increasing its offering with an additional 70 shops including two new Brazilian anchor stores, Etna –
the furniture retailer and Renner – the fashion retailer.
In 2010, the third floor was completed with the opening of a beautiful Space Gourmet, containing four restaurants
in an area of over 2,500 square meters and capacity to accommodate 700 people. In December 2010 the
extension continued with the inauguration of the Teatro Riachuelo, a large theatre/multipurpose room for shows,
business meetings, conventions and musicals.The capacity of the theatre is 1,518 people, meeting the demand for
large shows and events of Rio Grande do Norte. The project has been praised by the state and the great artists
who perform here.
International brands which opened stores more recently at Midway Mall are Apple and Zara (in 2012) and US
food giant Outback Steakhouse (900 units across 22 countries), which opened in 2014. Midway Mall has an
impressive footfall amounting to 2 million visitors per month.The centre is anchored by the Brazilian hypermarket
Extra, and its food-court area totals 32 restaurants which can accommodate up to 2,000 people. In addition, there
is a large 7-screen cinema and the centre offers over 3,500 free parking spaces.
Partage Norte Shopping Natalⅹⅴⅱ (also called Norte Shopping) opened in December 2007 in North Natal,
which is a very populated and fast growing zone. The shopping centre has 100 stores and around 36,000 square
meters spread across two floors. Norte Shopping has capacity for 1,200 vehicles.
The shopping centre has one of the most beautiful views of the city, the Potengi River with the South Zone in the
background seen through an immense glass wall in the centre’s food court which includes 20 restaurants with a
total capacity of up to 1,000 people. Norte Shopping is anchored by C&A, Carrefour hypermarket and Marisa,
the largest Brazilian department store chain.
Shopping Cidade Jardim opened in 1984 in the South of Natal at a time when this zone had not yet achieved its
current high value and urbanisation levels. This centre also claims the title of the oldest shopping centre in Natal
together with Natal Shopping Centre.
Shopping Cidade Jardimⅹⅴⅱⅰ is significantly smaller than Natal Shopping Centre with its GLA (Gross Letting Area)
amounting to 3,371 square meters.The centre accommodates a total of 104 shops including restaurants however
the centre is conveniently located at the junction of one of the main roads in Natal through which handles over
100,000 vehicles per day. Footfall exceeds 15,000 visitors per day which is impressive relative to its size.
Restaurants offered in the centre are varied with numerous options from regional to international cuisine (e.g.
Bella Natal, Real Botequim, Pittsburg, Emporium flavor, Nemo Sushi, and Moleque). In addition to shopping and
leisure, the centre also offers other services such as banking including Caixa Economica Federal and HSBC
amongst others, Registry Office (register of marriages, births etc), currency exchange, clothing repairs/adjustment
shop and a small medical clinic.
Via Direta is a discount shopping centre located just across the road from Natal Shopping Centre (Av. Salgado
Filho). ‘Via Direta’ in Portuguese means Direct Sell. The shopping was designed to be a channel for producers
selling directly to consumers at discount prices however the shopping centre turned into more of a conventional
business catering for the middle and lower classes.
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NATAL: BRICKS & MORTAR
Property price growth across Natal and Northeast Brazil
In the Northeast region, Brazilian house price index Fipe Zap measured that the three largest cities in the region,
Recife, Salvador and Fortaleza have recorded very strong growth in recent years. Recife is leading with 101.9%
growth between Q3 2010 and July 2015. Over the last 6-12 months, growth has slowed due to the economic
downturn however it is still positive at 6.6% Y-O-Y to July 2015.
Fortaleza recorded 82.1% between Q1 2010 and June 2015, whilst Salvador recorded 45.9% between Q3 2010
to July 2015. Fortaleza saw a 8.4% Y-O-Y house price increase to June 2015 whilst Salvador recorded 6.3% Y-O-Y
to July 2015. This demonstrates a continuing impressive house price growth across Northeastern cities in Brazil
and although growth has slowed in the last 6 months, and in certain months it fell due to the economic downturn,
the year-on-year data still shows prominent growth.
In Natal, the availability of house price dataⅺⅹ is scarcer as Brazil is an emerging market and property research is
still in development however we can gauge certain trends. In Petrópolis, one of Natal’s prime residential areas to
live and work in, the average house price in July 2015 was around R$4,352 per m², which is 3% increase in one
month only. In June 2015, Fipe Zap suggests an extraordinary 14.8% growth in month-on-month house price
growth. However, it is important to note that house prices in Natal fell since last year just after the presidential
elections and due to the economic downturn (the average price in Petrópolis in Q3 2014 was R$4,526 per m²).
Nevertheless, in summer 2015 we are have witnessed a house price recovery again.
In Ponta Negra, Natal’s prime commercial and residential area surrounding the Ponta Negra beach, average house
prices at July 2015 stood at R$4,822 per m². There was a similar pattern of fall in prices last year and rise again in
summer 2015.The average house prices in this area fell from R$5,166 per m² in April 2014 to R$4,145 per m² in
February 2015. Nevertheless, from February 2015 to July 2015, the house prices strongly bounced back by 16%
in only five months and currently stand at R$4,822 per m².
Lagoa Nova is also one of the attractive, upmarket areas of Natal, located south of Tyrol and Petropolis. A similar
trend also occurred there of fall and rise of house prices although there is less availability of data for this area.
The house prices in Lagoa Nova in February 2014 rose to R$4,364 per m², after which they dropped by 5%
during the 17 months to July 2015 and stood at R$4,146 per m². Nevertheless, the prices in this area have seen
an overall excellent growth in just under 2 years, from R$3,221 per m² in September 2013 to R$4,146 per m² in
July 2015, which makes 29% growth over the last 22 months.
Looking back, the prices available for some of the most attractive areas of Natal have shown an extraordinary
growth over the last 7 years. In particular, since September 2008 to July 2015, the house prices in Petropolis have
grown by a total of astonishing 273% whilst in Lagoa Nova the house price increase amounted to incredible 146%.
Thus, the house price growth which occurred over the last 7 years is equivalent to an average of 39% growth per
annum for Petropolis district and 21% per annum for Lagoa Nova district.
In terms of how Natal stands on average house prices compared to other cities in the Northeast region, according
to Ritz-G5 sales data, Natal presents as a very good investment in comparison to other cities which are more
expensive.The average house price across Natal as a whole currently stands at R$ 3,470 per m², which is a better
value than in Recife R$4,888 per m², Fortaleza R$4,876 per m², Salvador R$ 4,277 per m², João Pessoa R$ 4,675
per m², Maceió 3,774 per m² and Sergipe R$ 3,927 per m². That also implies that there is potentially more space
for house price growth in Natal in the future, compared to other cities in the region.
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Natal rated 5th best place to invest in Brazilian real estate
Natal has been rated as the 5th best city to invest in real estate in Brazil, according to a recent business survey.
This is an extraordinary finding considering that nearly all Brazilian municipalities were studied, out of which the
100 best were shortlisted and ranked.
In the list published by a leading Brazilian fortnightly business magazine – Exame - based on the survey conducted
by consulting firm Prospecta Inteligência Imobiliária (Prospects Intelligence Real Estate), Natal was defined as a
great place for investment in all types of real estate (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 chose to investigate the demand by tracing future trends.
The study used several variables which measured per capita income, education levels and employment, a number
of operating companies in the city and the housing deficit.
100 municipalities were compiled showing the potential for real estate investment with Natal ranked the 5th best
city in the whole Brazil (the other top 4 positions are dominated by the cities of São Paulo).Thus, in the Northeast
region, Natal ranks in the top position, ahead of Maceió (8th) and João Pessoa (10th).
According to an independent real estate investment consultant, Mike Smith (based in Natal) and his blog on
this survey, these study findings have already drawn attention of the investor groups onto the advantages of
investing in Natal.
Ritz-G5’s Brazilian Director of Marketing, Fernando Lessa, pointed out that Natal is a city with great characteristics
and attractiveness, and although it does attract tourists and holidaymakers, it has a very strong migratory pull
too. This is because it offers a superior quality of life in Brazil; e.g. faster and shorter commute to work, stunning
beaches which are easily accessible and far better quality housing found at much cheaper prices than in the largest
cities in the South.
According to data collected by Prospecta Inteligência Imobiliária, Natal has experienced a large increase in
purchasing power of the average citizen.The average income of the economically active population (EAP) in Natal
has six times the minimum wage (nearly R$ 5,000). The increased purchasing power of the population nearly
always translates into the growing real estate demand and prime assets.
In addition, the survey also revealed an interesting fact about Natal; of the top 5 best cities to invest in real estate
in Brazil, Natal has the largest housing deficit, standing at 34.18%. The other top four municipalities on the list
have: 27.83% housing deficit in São Bernardo do Campo (1st place), 29.24% in
Campo Grande (2nd place), 29.71% in Santo André (3rd place), and 33.82%
in Osasco (4th place).
Moreover, there is a current opportunity to buy property in Natal
at highly discounted prices for overseas investors. In particular, the
Brazilian real fall has resulted in a 12-year low against the British
Pound, US dollar, Euro and some other hard currencies.
Real’s depreciation, which is nearly 55% against the
British pound, in combination with the above
mentioned factors, makes great timing for overseas
buyers to invest in Natal’s property.
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HOW TO BUY A PROPERTY IN NATAL
The single most important piece of advice would be to hire a credible, qualified lawyer to represent you and
handle your property purchase in Natal.
Clients buying properties in Brazil will require a lawyer to receive comprehensive advice on all aspects of the
procedure, from who the developers are down to planning permission.This will identify any potential risks inherent
to a particular deal.The lawyer will check the ownership and any charges, encumbrances or liens registered on the
‘matricula’ (registration) of the property. They will also inform clients about the financial credibility of developers,
apply for a CPF number (equivalent to an NI number in the UK), provide advice on the contracts and assist with
the transfer of funds to Brazil.
The buyer must have a CPF number in order to purchase a property in Brazil. Your lawyer will also provide any
general advice as well as explain how taxes work (Brazil imposes various taxes on Municipal, State and Federal
levels) and ensure that the property is registered correctly in the client’s name. In summary, a credible and qualified
lawyer will check all the documentation needed for your property purchase and ensure that your transaction runs
safely and smoothly.
If you are buying an already built, existing property, a verbal offer can be made through an estate agent. Once
the negotiation has been settled with an agreed price, a lawyer should be appointed to oversee your purchase
proceedings, including deposit and reservation payments to secure the deal for both buyer and seller, which is
generally 10%.
With off-plan properties (purchasing at the planning stage, before it is built), the price is usually fixed as the
developer is already offering discounted prices at the pre-launch stage. The biggest benefit of buying off-plan
properties is paying substantially lower prices compared to the price on completion.
It is also important to keep in mind the property transaction costs, which include legal fees. In Brazil legal fees cost
on average between £1,300 and £1,800 per transaction. However fees can be lower than this depending on the
transaction and can amount to only 2% of the property price according to Global Property Guide on Brazil. Legal
fees are usually based on time and labour required, the difficulty of the questions involved and the length of the
professional relationship with the client. A Brazilian Notary should also be used; the notary fees usually amount
to 1.25% of the purchasing price.
Other associated costs are the charges to transfer the property title in Brazil. These are the responsibility of the
buyer and the fees can average between 3% and 8% of the purchase price (often average around 5%). These
costs are called property title transfer or registration fees, however the costs differ according to location and type
of property that you buy (for example with beachfront property it generally costs more) and also the State in
which you purchase.
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In terms of buying safely, foreign investors with a freehold title deed are afforded the same rights as Brazilian buyers
for residential and commercial property. Every jurisdiction has its own Land Registry Office (Cartorio) where
the property should be registered. The registrations are public and anyone can request a copy of a Certificate of
Registration (Certidao de Matricula).
Agency fees are another part of the transaction costs however these are only applicable when selling the property
and do not apply to buyers of the property. Property sellers pay between 3% and 6% of the property price.
Another important thing is to do your own research. This involves thoroughly investigating Natal or the chosen
market in Brazil, to identify the potentials and possible investment pitfalls. One has to gather as much information
as possible about the process of buying property Brazil and we hope that this guide can assist you with that. It is
also advisable to have your documents translated before signing them, as it is essential that you as a purchaser fully
understand the agreement you are signing into.
Finally, but very importantly, it is imperative to look at the developer’s track record when investing in off-plan
properties/developments. If the developer has a solid track record and history, then it is more attractive and
safer investment to purchase from them. The Ritz-G5 Group is an award-winning developer with 30 years of
experience in property construction in Brazil. Within the last 3 decades, 21 projects have been completed thus
far delivering Ritz-G5 an outstanding track record in terms of project completions in the state of Rio Grande
do Norte.
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36
WHAT ARE THE RISKS ASSOCIATED WITH
BUYING A PROPERTY IN NATAL?
One of the very important things to look at when investing in the international property markets are transaction
costs. Transaction costs vary greatly depending on which foreign market the buyer is investing in, and in some
countries they can be very expensive. However, property transaction costs in Brazil are moderate; according
to Global Property Guide on Brazil, the buyer pays around 6% to 8% of the property price when purchasing
property while vendors pay on average 3% to 6% (real estate agency fee). The moderate property transaction
costs combined with the good value beachfront property prices found in Natal, certainly does encourage
international property investment.
Another area of concern for overseas investors is currency volatility. Property buyers have to convert their
domestic currency into foreign one to purchase the property. On this matter, now is the best time to invest in
Natal and Brazil. This is because the Brazilian real is at its 12-year lowest point against both the British pound and
US dollar. It has dropped around 55% in value against the British pound and around 50% against the US dollar.
This means that British, US and Singaporean investors can currently buy over 50% more Brazilian property for
the same money.
For example, at the end of 2011 the British pound traded at the exchange rate 1 BRL= 0.4 GBP while currently
it trades at 1 BRL = 0.18 GBP. Hence, a property that was costing £166,560 at the end of 2011 will now cost
only £74,952 in British pounds, based solely on the currency drop. This calculation is based on a current average
price of property in Natal, which amounts to R$3,470 per m² according to Ritz-G5 data (as at August 2015).Thus,
based on this average property price, one can actually buy a property of 120m² size in Natal at a heavily reduced
price of £74,952. As mentioned, due to the undervalued Brazilian currency, now is the best time to purchase a
property in Natal as Brazilian real will most certainly appreciate in value after the economic downturn is over.
Other risks include a higher liquidity risk. Depending on the asset and the location, it can take longer to sell the
asset than in some well-established Western locations.This is why Ritz-G5 invests in the prime areas of Natal such
as Petropolis and Ponta Negra as well as other surrounding property hotpots. For example, Ritz-G5’s Majestic
Village project in Parnamirim is a property hotspot as the demand for housing in this municipality has grown
significantly over recent years.
Another risk to mention is transparency which is inherently higher in most emerging markets as there is generally
less information available compared to established markets. Ritz-G5 invests in its own research team to decrease
the transparency risk. At the same time, Ritz-G5 maintains a solid network of local real estate contacts in Brazil in
order to keep abreast with Natal and Northeast as well as Brazil’s national property markets.
There can also be a risk involved with some developments being significantly delayed or in some cases, projects
getting abandoned by developers.The best way to avoid this risk is to look at the developer’s track record and their
reputation. As mentioned earlier, Ritz-G5 is an award-winning residential and commercial real estate developer
with 30 years of property development experience in Brazil where 21 real estate projects have been completed
thus far. Ritz-G5 is also an AIPP accredited company, which means that it follows AIPP’s code of conduct within
the international property industry.
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Finally, there is a legal risk which is not employing a credible and qualified lawyer for your purchase or leaving
it too late to seek legal advice. The investor needs to use credible, legal representation from the very start of
the buying process. Addressing the legal risks, Ritz-G5 employs André Elali Advogados. With offices in Natal,
Recife, João Pessoa and São Paulo, Andre Elali Avagados consists of skilled professionals with extensive expertise
in Brazilian Corporate Law, many of whom are recognised for their academic achievements in and outside
Brazil. Since its conception, the company has met the highest professional standards with the formation of
entrepreneurial methods of work. For more information on our legal representatives please visit the website:
http://andreelali.com.br.
In conclusion, it is a well-known fact that the emerging markets normally carry somewhat higher risks however
they also carry higher returns and opportunity of capital appreciation given the right type of property investment
with the right developer.
In this respect, our next section will cover Ritz-G5 Group’s background and an overview of its projects available today.
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WHAT CAN YOU INVEST IN THROUGH RITZ-G5?
Ritz-G5 is an award-winning international property developer and investment company with offices in Brazil, UK
and Singapore. Much of the Ritz-G5 Group’s investment activity is focused in Northeast Brazil, Rio Grande do
Norte and its capital city, Natal.
We invest in all types of real estate: residential, hotel and commercial. Our company presents a number of
opportunities to invest in our projects, offering very competitive rates of return.
With a vision for excellence in luxe-living solutions, the Ritz-G5 Group is shaping a new skyline in Northeast
Brazil, and evolving into one of the most respected and award-winning developers in this region. Through strong
collaborations with partners across the industry, and 4,000 acres of prime beachfront land, Ritz-G5’s vision for
inspiring developments and investments is constantly evolving.
The following section provides a brief overview of Ritz-G5 headline projects in Natal:
Majestic Village
MajesticVillage is a sought-after serviced land plot condominium development set across 75 hectares in Parnamirim,
one of the most up-and-coming residential areas in Natal. It was designed to appeal to the domestic market and
Brazil’s middle and upper class population, which is over 90 million and rising.
Using an impressive build density of only 34%, Majestic Village will present a condo neighbourhood set in
beautifully landscaped gardens. The impressive facilities will include a school, supermarket, kindergarten, clinics,
swimming pools, tennis courts and club, volleyball courts, football pitches, children’s play area, gym, stunning
feature river and club house. A central square will provide a focal meeting point and will be surrounded by
bustling cafés and restaurants.
Costa Azul
Inspired by the Atlantic Ocean, Costa Azul or ‘Blue Coast’ is a new, modern and luxurious 168-apartment
development in Petrópolis, one of the most exclusive and exciting districts in Natal to live, work and play. Its
prime hill-top positioning compliments its bold design statement, where residents can enjoy captivating beach
and Ocean views and first class amenities including a swimming pool, gym, private bar and spa. With excellent
commuter links into the city and its close proximity to some of Brazil’s best beaches, Petropolis is quickly becoming
the sought after location for investors, purchasers and tenants.
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Palm Springs
Palm Springs is a recently completed project by Ritz-G5 and it is the first, flagship project jointly developed by the
group since Ritz Property and G5 merged and formed the Ritz-G5 Group in late 2014.
From its humble beginnings as an ostrich farm, Palm Springs has been transformed into one of the most
captivating and exclusive beachside condominium developments in Natal. Nestled in a glorious 100-acre setting,
this development incorporates a 40% density build in its masterplan so residents can enjoy lush landscaped
surroundings and spectacular beach and ocean views.
Since it was launched in 2012, Palm Springs has been a unique success story, attracting much interest and
endorsement from the Government and Ministers who have purchased plots. The region is also hugely popular
with celebrities and the wealthy, and following its completion in January 2014, buyers have been able to start
building their dream villa or townhouse here.
Celebrating the third anniversary of Ritz-G5 in Singapore on 12th August 2015, Singaporean clients who had
invested into this project 36 months earlier, have all received their first Exit Pay-out Cheques during the event.
Dunas de Muriu
Adjacent to the stunning, idyllic Muriu Beach, Dunas de Muriu is the new extension to one of the most popular
luxury beachside condominium developments in Natal – Palm Springs. This stylish and contemporary build
of 250-luxury apartments is inspired by the natural curves created by the surrounding, sweeping sand dunes.
Residents can enjoy spectacular beach and Atlantic Ocean views, as well as all the trappings of a tropical oasis
within Palm Springs including natural springs, a spa, swimming pool, hot tub, sauna, and beach and football courts.
Many domestic and international visitors make Muriu beach one of the most visited in North East Brazil. With
direct access to the RN-60 – the main highway linking the development to central Natal – residents have easy
access to the City as well as Natal’s new international airport.
40
Mercure Natal
Home to some of the most fashionable beaches and neighbourhoods in Natal, Mercure Natal is a contemporary
252-suite, 4-star hotel located in the upmarket district of Ponte Negra. Ponta Negra is a cosmopolitan metropolis
that attracts approximately 80% of the City’s tourist influx. This development occupies the last available plot on
the prestigious Via Costeira and offers excellent amenities including a business centre, private swimming pool
and 24-hour concierge. At 43 metres above sea level, 300 metres from Ponta Negra beach and on a 30 degree
elevation, residents have stunning direct views towards the Atlantic Ocean and a Brazilian landmark, the Morro do
Careca, or Bald Man’s Hill. Mercure Natal is managed by Accor, one of the biggest hotel groups in the world with
3,500 hotels and 450,000 rooms spanning 92 countries.
Piramide Natal
In its private, secluded setting on the beach by Parque das Dunas, the Piramide Natal hotel stands out as one of
the most prominent and bespoke designed beachside hotels in the area. This 4 star hotel has 315 guestrooms,
a water park, five swimming pools and a swim-up bar, a rooftop terrace, a fitness centre and spa tub, two
restaurants, 24hr concierge and a business centre with a capacity for 2,500 seats. Sitting directly on the doorstep
of the Atlantic Ocean just behind Parque das Dunas, the Piramide Natal hotel is perfectly located for discovering
the surrounding areas and central Natal, via Via Costeira.
In summer 2014 Ritz-G5 purchased the existing hotel and in 2015 Piramide Natal’s ambitious refurbishment
plans were announced by the new owners. After the 12-month redevelopment, the hotel will be granted the
prestigious title of Grand Mercure, first in Natal and join the global Accor Group. Its doors are set to open in
Q1 2016. The Accor Hotels Group is one of the largest hotel groups in the world, with more than 3,700 hotels
across 92 countries. Currently, Accor hotel brand operates in 10 countries across Latin America with 244 hotels.
For more information on Ritz-G5’s and how to invest in our projects, please contact the team on
+44 207 183 7565 or visit www.ritz-g5.com.
41
REFERENCES
ⅰ
http://en.wikipedia.org/wiki/Natal,_Rio_Grande_do_Norte
ⅱ
http://wikitravel.org/en/Natal
ⅲ
http://pt.wikipedia.org/wiki/Petr%C3%B3polis_(Natal)
ⅳ
http://pt.wikipedia.org/wiki/Lagoa_Nova_(Natal)
ⅴ
http://en.wikipedia.org/wiki/Ponta_Negra
ⅵ
http://www.pipa.com.br/about
ⅶ
http://www.pipa.com.br/beaches
ⅷ
http://www.natalriograndedonorte.com/genipabu-beach-dunes-natal-brazil/
ⅸ
http://en.wikipedia.org/wiki/Maracaja%C3%BA
ⅹ
http://www.baiaformosa.com.br/about
ⅺ
https://vivernatal.wordpress.com/2014/06/05/lagoas-que-voce-precisa-conhecer-no-rio-grande-do-norte/
ⅻ
http://en.wikipedia.org/wiki/Dunas_Park
ⅻⅰ
http://en.wikipedia.org/wiki/Carnatal
ⅺⅴ
http://pt.wikipedia.org/wiki/Natal_Shopping
ⅹⅴ
http://www.praiashopping.com.br/
ⅹⅴⅰ
http://www.midwaymall.com.br/2012/#
ⅹⅶ
http://www.partagenatal.com.br/o-shopping/
ⅹⅷ
http://www.shoppingcidadejardim.com.br/sobre/
ⅺⅹAll house prices in central Natal refer to prices of the apartments per m². Modern apartments in residential
towers with 24-hour security are more popular to buy and own in the central areas of Natal.
42
DISCLAIMER
Whilst Ritz-G5, its agents and representatives have made every effort when compiling this report to provide
current and accurate information from reliable sources it is accepted when reading this report that the
content could contain errors. Ritz-G5 takes no liability or responsibility for any errors or omissions in the
content contained in this report. Furthermore, this material may contain references to statistics, prices,
certain laws and regulations that may change over time and should not be interpreted as factual without
checking. The material, content and information in this report is provided “as is” with no guarantees of
completeness. Figures, accuracy or timeliness are provided without warranties of any kind, express or implied.
Ritz-G5 does not guarantee that this report, the services provided through this report, prices, comparable
prices of developments and any material information or content from this brochure, is valid at the time or
after the publication of this report. The predictions within this report should not be relied upon as actual
returns and the investment at maturity may be worth less than the amount paid. The information contained
in this report should not be construed as legal, tax, accounting or any other professional advice or service.
You should consult with a professional legal or financial advisor familiar with your particular factual situation
for advice concerning specific legal, tax, accounting or other matters before making any decision. Ritz-G5 is
not regulated by the Financial Conduct Authority “FCA” or any other financial institution and is not offering
investment advice in this report or through any other means of communication. Computer Generated
Imagery (CGI) is for illustrative purposes only and may be subject to change.
43
UK OFFICE
Berkeley Square House,
Berkeley Square, Mayfair,
London, W1J 6BD,
United Kingdom
+44 207 183 7565
www.ritz-G5.com
44

Buyer`s Guide to Natal, 2015

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