Wider Property Completion Times Delays Reported in Brazil’s Economic Hub
A survey by the Brazilian Company of Heritage Studies (EMBRAESP), demonstrated that the number of new real estate launches in the São Paulo region taking between 30 and 45 months for keys to be handed over to buyers has increased by 15 percent. Data released by the Justice Tribunal of São Paulo also pointed out that the number of court cases being taken against real estate developers increased from 202 to 500 between 2008 and 2010.
According to Eduardo Zaidan of the Construction Syndicate of São Paulo in an interview with the Estadão newspaper: “the works were always on time back in 2007 when there was labor, supplies and equipment readily available in the market – but then things came under enormous pressure as more developments were launched, for which constructors were not prepared for. ”
As a result, a number of developers have been extending their completion periods – with specific contractual clauses and disclaimers to ensure protection from legal action. José Paim de Andrade Junior, from the MaxCap group in the same newspaper stated: “the delays are going to continue – we are working with less qualified labour which is reducing our productivity levels.”
