Hotel Investors in Brazil Head to the North

NATAL, BRAZIL—Most real estate investors with designs on Brazil have focused on popular southeastern hubs like Sao Paulo or Rio de Janeiro. But the northeast region—relatively obscure to foreign investors—is emerging as a growth market ripe for hotel and residential development.

“There are so many facets that support investment in the northeast,” said Martin Bellamy, chief executive of London-based Salamanca Capital, during a press conference kicking off the Association for Real Estate and Tourism Development’s (ADIT) 2010 Nordeste Invest conference here on Monday. “Besides its diverse industries, this area has a lower barrier to entry than Rio or Sao Paulo, where competition is fierce.”

Bellamy was among some 1,300 international and local investors who converged on Rio Grande do Norte’s capital for a three-day event to draw private equity to Brazil’s burgeoning commercial real estate market. Of particular interest for many participants has been the fertile investment ground of the northeast region, which is witnessing 7% economic growth, according to the ministry of tourism.