The announcement from the Federation of International Football Associations that Natal will be one of 12 host cities for the 2014 World Cup, is greeted with some relief on the propertycommunity.com forum where there had been predictions that this popular resort in the north east of Brazil might miss out.
It was claimed that the city was not putting enough effort into securing a place on the list and that no direct flights from the US might hamper its chances.
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So its inclusion in the final list will be a relief to many real estate investors who are hoping to rent out their property for the tens of thousands of fans who will descend on the area.
Indeed the plans for the new stadium, which is designed by the same people that did Wembley in the UK, show it is in the heart of the city with new shops, restaurants and a lake.
The latest feature on Property Wire looks at what is currently happening in Brazil and there are a lot of positive vibes coming from the country where the economy is not expected to go into recession this year, unlike many established real estate markets.
The forums show that Brazil is still very popular among investors and potential investors. Although those wishing to take advantage of the football World Cup effect might have to hurry up with popular cities in the north east making it onto the host list for the matches.
There is more positive feedback on the channel4.com forum where Natal in particular seems to tick all the right boxes. One downside reported on the forum is that direct flights from key locations like the US and the UK appear to be decreasing. Perhaps the World Cup effect will change all that.
But not all is so rosy in other emerging markets, especially those in East Europe. There are a lot of problems in Romania with prices falling dramatically according to a thread on the propertysecrets.net forum. 'We all should have done our research better,' is an all too frequent comment.
It would appear that property investors in the country are considering walking away from their investments, losing deposits and other fees rather than continue investing in real estate that is worth a lot less. 'Paying the final payment knowing that prices are falling feels a little bit foolish,' is the comment from one investor but it sums it up.
Romania couldn't be more of a contrast to Brazil and the tone on the forums reflects that. Prices in some developments have fallen more than the amount put in by investors and many seem genuinely unsure what to do. One option suggested is that investors seek a price re-negotiation with developers but then developers in Romania are not easy to deal with as can be seen on many previous forum posts.
Although there are some indications that direct negotiations with developers could result in a compromise that suits both sides. Anecdotal evidence suggests that prices in Romania have fallen by 30% and are expected to fall further – up to 50%.
It would appear that there are similar problems in Poland and Bulgaria. Despite this some people on forums still recommend buying in East Europe. They could, of course, be agents who are desperate to sell and are talking up the property market. But it is certainly Brazil that is coming up tops at the moment.
