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Continuing on the current theme of 2012 Brazil property market behaviour, Paulo Sady Simão of the Brazilian Construction Industry Chamber of Commerce (CBIC) recently commented to national press: “we saw a significant increases and excesses in the recent past which are already seeing signs of settling – but I do not see motives for prices to rise neither fall.” He went on to comment that housing credit totals today represents 5.1 percent of national GDP which is noticeably lower than other Latin countries such as Mexico where the figure is 12.5 percent.  Overall 2012 will be a positive year with no risk of a bubble according to Simão, although there are some risks related to the international crisis; the impending municipality elections which may lead to the suspension of new contracts and more practical issues happening on Brazilian building sites (such as labour, machinery hire and material delivery).

Ubirajara Spessoto, director general at Cyrela São Paulo in an interview with the iG magazine was seen somewhat talking up the market, commenting: “I see no reason why prices will not rise.” Whilst acknowledging the same problems as Simão (in addition to commenting on the continued inflationary pressures on core construction inputs) he believes that, despite margins being put under pressure, market demand will remain strong which will maintain an upward trajectory of prices – albeit at a slower pace.  Speaking with regards to the construction company’s own intentions, projects will be launched at a pace similar to today with sales volumes expected to close 2012 at between R$ 8 and 8.9 billion (compared to between R$ 6.9 and R$ 7.7 billion in 2011).