Brazil Property 2012 Predictions Commence
As is usual towards the end of the year, Brazil real estate and land specialists have been presenting their thoughts related to the imminent future of the sector, such as via a recent Construction Industry Syndicate (SindusCon) presentation event in São Paulo. Economist from the Getúlio Vargas Foundation (FGV) Ana Maria Castelo stated that construction sector growth had slowed from what was a widely perceived excess of 15.2 percent in 2010 to 4.8 percent in 2011. For 2012, the growth rate is expected to remain broadly constant at 5.2 percent.
Some of the main reasons for the noticeable slowdown that has occurred over the last 12 months – according to Castelo – was the slower than expected progress of part 2 of the My House, My Life (Minha Casa, Minha Vida) programme as well as factors such as an overall slowdown in sales volumes in all cities across Brazil as well as ongoing issues related to labour contraction – all of which look firmly set to continue into 2012. Another concern that remains is the source of wholesale finance to be applied to housing, as discussed (and subtitled) in the short video interview with Castelo and the PINI magazine below:
Whilst the effects of the ongoing deceleration of the developing world is also likely to have a rippling effect on economies such as Brazil, Castelo remained broadly optimistic about the year ahead quoting factors such as the high demand for social housing; municipality elections (which should bring an impetus on regional leaders to prioritise local real estate needs) and wider financing availability for complementary infrastructure related investments. Readers may be interested in viewing an interview we undertook with Ana Maria Castelo in September 2011 by clicking here.
I have purchased an apartment in Rio and am required to make 26 payments. The last payment is required in May 2012. I had a meeting with the construction company and have been told the project will be delayed at least 1 year “because of difficulties with the land”. What is my best legal course of action?
Thank you in advance for your help
Unfortunately, this is happening more often. You should primarily see what the sale contract stipulates with regards to late unit delivery and your associated rights. Drop me a line at info@brazilinvestmentguide.com and I will put you in touch with a good lawyer who should be able to help and you should also put a complaint through to Procon: http://www.procon.rj.gov.br/
I am visiting Brazil right now. I have been to Caratinga and all over Rio. The Minha Casa, Minha Casa homes are very small. They look like tiny boxes.Whereas the home program in Caratinga had nicer homes that were built well and colorful. I just dont understand why its so hard to build a four sided box. That is too small anyway so hopefully they find a new way. The country is beautiful and the people are too.
The very few Brazilian affordable housing construction companies that remain in the sector have no choice but to build small and bad quality units in order to make their margins work. Even then, the prices have become out of the reach of the low income demographic making the sector a difficult one using conventional models. On the positive side, with the housing deficit estimated at up to 30,000,000 units, demand has reached unprecendented levels so the market is definitely an interesting one for investors…
Brian – I have just uploaded a video to You Tube which may give you some assistance: http://goo.gl/wBQ1j