Investing in property after covid-19 lockdown

Investing in property after covid-19 lockdown

We are all familiar with the current covid-19 situation, both in our home countries and across the world. As well as the health, economic and social repercussions that may result from it. But as some countries start to shift out of lockdown, it is time we turn our attention to the future.


This isn’t the first worldwide crisis and those of us who have lived through several have learnt that adversity always leads to new opportunities. At BRIC Group, after over two decades of investing in property we can safely say for sure that these opportunities are often the best.


So, what happens next from a property investment perspective? The current pandemic presents several silver linings for investors and we believe that one of the best opportunities currently lies in The Coral, our award-winning resort in Northeast Brazil. Here’s why:


Opportunity in domestic tourism

In the post-quarantine period when international travel is likely to be severely curtailed – possibly for months – domestic tourism will form the backbone of many local economies. As the only available option, local trips will become more popular, especially prime holiday spots will receive the highest demand. Investment in holiday lets will reap more premiums than ever before.


In Brazil, domestic tourism is well established with the Northeast a favourite location and the state of Ceará in the top holiday destinations. Analysts expect demand to be pent-up after lockdown, when people are going to be anxious to get away. Domestic tourism will see a sharp uptick as a result with key destinations in Brazil at the top of the must-visit lists.


According to the World Tourism Organization, the tourism sector is one of those most able to drive the global economic recovery, generating development opportunities and allowing cohesion within nations. Supporting the industry at this time is of crucial importance. It is for this reason Ceará’s Ministry of Tourism is already taking several actions announced by the state government.


“Ceará tourism is strong. The tourists will come back. Together we will be able to resume our activities and return to being the fastest growing destination in Brazil."


Ceará stands to do very well from this rise in visitor figures. Fortaleza Airport has well-developed infrastructure and an excellent network of domestic flights with regular services from Brazil’s largest cities. The tourist board and hotel associations are already working on social distancing measures to ensure peace of mind for visitors.


At BRIC Group, we believe those areas in Ceará that offer tranquillity and nature, away from the crowds are set to see the highest surges in demand. The Coral resort is one of them. Set on the vast beach of Praia de Guajirú, only 1 hour 20 minutes’ drive from Fortaleza Airport, the resort enjoys a privileged location. We expect interest to increase significantly over the coming year. Investment opportunity lies in anticipating this demand and catering for the new trend in “holiday local”.


Opportunity in the right type of property

Being forced to spend weeks in lockdown has changed where people want to spend their time post quarantine. Properties that offer plenty of space, private outdoor areas and natural surroundings are more attractive than ever as permanent residences, second homes and holiday lets.


We expect demand for this type of property to increase post covid-19 lockdown. The rise could be exponential if future spikes in the pandemic will mean more future periods of lockdown or very reduced activity.


The Coral resort has very low-density build and its’ properties are spread across 1 million square metres of untouched natural surroundings.


Opportunity in the right location

Location is always a key component of savvy property investment, but the pandemic has brought its relevance even nearer to the forefront. In the new era of social distancing, being with as few people as possible will become a priority for many.


Low-density areas with few people and built-up spaces will appeal far more than crowded resorts and cities. When faced with the choice between a busy or a quiet beach, holidaymakers will clearly opt for the latter.


During lockdown, nature has come into its own. We have learnt to appreciate open spaces and many people long to be in natural areas. The Coral, as well as being on one of the most unspoilt parts of the vast Ceará coastline, the resort surroundings are comprised of sand dunes, miles of vast beaches, natural lagoons and tropical palm and coconut plantations.


Opportunity in the right currency

Movements in currency exchange often work in investors’ favour and offer big savings on a property purchase. This is currently the case in today’s market when exchange rates for the Brazilian real against the USD and Euro mean property is over 30% cheaper.


In the bigger financial picture, this translates into saving thousands. When new opportunities present themselves, making your investment at the right time is essential. We believe that the time to make the absolute most of currency exchange is now, with USD and Euro prices for property at The Coral at their lowest ever.


Opportunity in property

Over the last few weeks, the world’s stock markets have been on a wild roller coaster ride and investors have seen millions wiped off their portfolios literally overnight. Some of the most respected investors have withdrawn their investment from sectors once seen as stable and profitable – take Warren Buffet’s decision to sell all Berkshire Hathaway’s stock in four major airlines, for example.


But there is one investment asset that remains (literally) as safe as houses – property. Despite the ups and downs of property market cycles, the underlying trend in house prices is always up. This means that bricks and mortar are always a wise investment in the medium and long term.


The Coral resort offers a number of property investment opportunities from land plots to villas, 2-bedroom apartments and loft apartments. As always, getting in early reaps the greatest rewards for capital growth.


Opportunity in business as usual

The lockdown has affected sectors of the economy in different ways. While some industries have experienced total closure, construction in some Brazilian states has continued as usual. Construction at The Coral, for example, has continued albeit at a slower pace. Building works onsite are business as usual, even in times of adversity. At a recent conference on the effects of covid-19 on Brazil, economist Luis Nogueira said that he expects the current crisis to have much less impact on Brazil property than on other sectors.


Opportunity in reopening

For many businesses, the post-lockdown stage will be the most challenging of all. Only those with rock-solid foundations, a proven track record and stability behind them will be able to reopen and continue to offer their services at their previous levels of excellence. More than ever before, the new normality will sort the wheat from the chaff in the business world. Expect the survival of the fittest only.


As movement in the state begins and schools remain closed, we expect higher demand than normal for facilities at the resort as families look for activities to do with their children in safe places where social distancing can be adhered to easily and density of people is minimal. One advantage of Praia de Guajiru where the resort is located, is that it is a vast expanse of beach where crowding is virtually impossible.


For these same reasons we expect a surge in rentals at the resort as the summer season approaches and people look to escape from the confines of their homes post lockdown. This view is supported by the Tourism Secretary of Ceará who was recently quoted in O Povo that in our days of confinement “we remember our trips and try, as far as possible, to plan the next one. Knowing new places, eating well, being outdoors, living. Accumulate experiences, expand our view of the world."


The Coral resort is owned and developed by BRIC Group, a real estate company with more than 24 years’ experience providing successful investment opportunities to clients. Unlike the majority of property investment companies, we invest our own money first in every opportunity we offer. As a result, every single investment product comes tried and tested, giving our clients absolute peace of mind and confidence in their purchase.


The opportunity is now

At BRIC Group, we know the brightest opportunities arise in the darkest times. We also know that the best investors recognise these and act immediately. We hope you will join us as we move forward past covid-19 quarantine.


For more information about investment opportunities at The Coral, please don’t hesitate to contact us.