It’s been predicted that Brazil’s north-eastern state of Ceara, the municipalities of Pecem, Sao Goncalo and Caucaia will undergo something of a population boom due to ongoing development of the port and industrial zone. The current population of Pecem and Sao Goncalo is just 15,000, but this is expected to expand to 140,000 within the next decade due to Brazil’s substantial investment into energy and infrastructure.
One of the major contributors of this large-scale growth is expected to be the steel plant which is currently under construction as this will generate 37,000 jobs. Petrobras’s Premium II refinery is expected to bring another 90,000 direct and indirect jobs into the area. While this is all excellent news for the region it is expected to create heavy demand on housing and infrastructure, and will present some unique opportunities for developers and investors.
It’s likely that a zone of rapid development will emerge from Pecem to Caucaia, and Caucaia is already beginning to see the effects of investment with a new wholesale center and shopping mall. While some of this demand will be met through the governments Mina Casa Mena Vida social housing program, the area is also likely to see considerable demand for middle income housing.
Jamie McDonald Murray of MDMY Investments comments “The port expansion, the steel plant and refinery are creating a truly unique environment for investors, as massive industrial investment is essentially assured for the next five years at a minimum. Once capacity is built, we expect the second wave of industrial expansion will create substantial growth through the next decade.”
MDMY Investments already has two Brazil property developments designed to cater for new workers in the area, and sales are already well underway. The company has plans to announce several new projects during the coming months.