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The Brazilian National Index of Construction Costs (INCC-M) has shown an average 2.03% rise between May and June 2011.

Research by the São Paulo Regional Council of Real Estate Brokers (CRECI-SP) and the Foundation Institute of Economic Research (FIPE) has pointed that even whilst rental figures for housing in Brazil’s two largest cities (Rio de Janeiro and São Paulo) has increased, such numbers are significantly less when considered proportionately to the rise in overall prices.

Statistics released by the Brazilian Association of Construction Materials (ABRAMAT) have pointed to a 0.85 percent drop in sales when comparing April 2011 with the same period in 2010.

Recent evidence has pointed to noticeably rising property and land values in one of Rio de Janeiro’s largest regions of favelas communities (urban neighbourhoods consisting of badly structured and poor quality housing, usually located in the city peripheries). Much of the news has been attributed to the recent pacification programmes undertaken in several regions deemed at risk by the city government.

Despite targets of phase one of the programme not being met – on 16th June 2011, Dilma Rouseff officially launched the second part of the Minha Casa, Minha Vida (My House, My Life) programme (MCMV). The preliminary intention will be the contraction of 2 million new housing units between 2011 and 2014, of which a budget of R$ 72.6 billion will be focused on subsidy provision and R$ 53.1 billion for finance. Despite a number of public spending cuts announced in the first half of 2011, the Brazilian government has stated that funding will be maintained with resources being 5 percent higher than in 2010.

Statistics released by the Habitation Company of Metropolitan São Paulo (COHAB) have reported that the total costs and expenses of constructing popular housing (including public infrastructure) in the central regions is 14 percent less than undertaking similar projects on the outskirts.

Please see the June 2011 statistics and graphs (released mid-month) with information related to Brazil’s real estate and land industry by clicking on the link above – including the new property price variation index, OECD composite leading indicators, inflation statistics, the SELIC interest rate, housing / private / commercial sector lending, percentage changes in construction costs, consumer spending levels, consumer / industrial / business confidence, real earnings and unemployment.

The quarterly report released by Brazil´s construction industry representatives has shown a maintained high confidence level – albeit at a slower pace than what was witnessed at the start of the year.

A recent report in Brazil´s Globo newspaper pointed to increasing occurrences of delays happening on the delivery of real estate projects – interviewing a number of home buyers affected in one of the most prominent regions of the country, São Paulo.

One of Brazil’s leading property development companies – Gafisa – has been streamlining and restructuring its system of processes in line with what is estimated will be a continued strong demand for housing (the company is expecting a 20 percent growth rate in sales when compared to 2010).