The latest estimations from the São Paulo Construction Syndicate (SINDUSCON-SP) has pointed that industry growth for 2011 should reach approximately 5 percent, one percentage point above Brazilian GDP expectations.
The São Paulo City Government has announced the commencement of a detailed investigation of suspected fraud and tax evasion being undertaken by a number of prominent Brazilian real estate development companies estimated at a total value of R$ 100 million.
Reflecting a common story across Brazil, official statistics from the state of Ceará (north east Brazil) have confirmed that of the 4,060 Minha Casa, Minha Vida (My House, My Life) units promised to priority regions with populations of under 50,000, 771 – or approximately 19 percent – have been delivered to the market. Looking at overall programme targets for the state, out of the 15,000 units approved since 2009, under a thousand have actually been completed.
The number of complaints made to the Procon organisation against Brazil property constructors and incorporators has continued to rise, hitting 1,981 for the first half of 2011 in São Paulo alone, where the majority of the country´s main players have ongoing projects – rising by 26 percent compared to the same period of last year.
Research released by the Brazilian Association of Construction Materials (ABRAMAT) has indicated that the number of companies intending to invest in expansion over the next 12 months has decreased to 69 percent, compared to 75 percent in the same period last year.
A recent gathering of members of the Construction Syndicate of São Paulo (SINDUSCON-SP) and the Brazilian Chamber of Commerce for Construction (CBIC) drew to the conclusion that the country’s real estate industry looks set to experience a period of difficulty, albeit to a lesser extent to what is to be expected in other international markets both developed and emerging. Several comments made during the event were highlighted in the Estadão newspaper shortly afterwards.
Please see the August 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.
A research document was recently published by the São Paulo Syndicate for Habitation (SECOVI-SP) and the Dom Cabral Foundation examining the necessary requirements in order to improve the quality of life in Brazilian urban areas, several of which are witnessing rapid growths in population. The report aims to provide the housing sector and those involved in issues related city expansion with a broad set of standards related to sustainability which should be incorporated into company policy, organisational structuring and future planning.
Research undertaken by the Brazilian Real Estate Studies organisation (EMBRAESP) has pointed to prices in the Itaim-Bibi area of São Paulo dropping by an average of 3 percent when comparing the first half of 2010 with that of 2011. The price average price per metre square still remains one of the highest in Latin America – at R$ 13,183 per m² – growing by an estimated 50 percent since 2006.
Recent research undertaken by the Exame magazine indicated that borrowing levels for consumer goods and services (largely by the middle classes and above) have reached levels never witnessed before – tripling over the last 5 years, despite the 8 rises in the SELIC base interest rate over the last 16 months.
