A report released recently by the Brazilian Association of Technology for Equipment & Maintenance (Sobratema) entitled “Principle Brazilian Infrastructure Investment Until 2016” has indicated that there is a total of 12,265 private and public projects currently underway or in projection across the country with an aggregated value of R$ 1.48 trillion (US$ 0.81 trillion).
At the launch of a report published by the Rio de Janeiro Housing Syndicate (Sindicato da Habitação do Rio, Secovi-RJ), city mayor Eduadro Paes commented that prices increases have been “crazy” and that the prefecture itself has a responsibility in this area. The comments somewhat contradict those made in a BBC interview a few weeks previous where Paes stated: “I think it [the property boom] is a good thing and is helping the rediscovery and construction of areas that were degraded… I believe it is a special moment for the city and should not be viewed negatively – in the future, the situation may turn but the market is fair.”
The recent evictions and mass displacements of favela residents in São Paulo and Rio de Janeiro have served to demonstrate the extremely lagged nature of Brazil´s affordable housing strategy – with most of the demographic having very few options beyond the bare boned compensatory packages offered when such situations occur. Some interesting points were recently made by Ermínia Maricato, professor of the architecture and urbanism faculty at the University of São Paulo related to the growth in the acquisition of electronic goods, motorbikes and cars by those living in precarious living conditions in sharp contrast with the lack of progress in effective housing reform for these groups. In an interview with the Rede Brasil Atual, which has been broadly translated below, Maricato – one of the brains behind the Minha Casa, Minha Vida (“My House, My Life”) programme – also commented that Brazilian urban housing reform is moving counter directionally and there is a need to initiate a “new fight”.
A recent article in the Rio de Janeiro online “R7” magazine pointed to the growing number of people moving into favela regions of the city as a result of the inflationary pressures on rents and wider perceptions that, as a result of the recent pacification programmes, they have become safer to live in.
A public audit undertaken by the General Union Controller (Controladoria Geral da União, CGU) of signed popular housing contracts between 2004 and April 2011 under the command of the Brazilian Housing Secretariat (Secretaria Nacional de Habitação, SNH) / Ministry of Cities (Ministério das Cidades) recently pointed to a noticeably high number of delayed, paralysed and non-started projects throughout the country.
As 2012 will mark the 5th year anniversary of the launch of the Brazilian government led Growth Acceleration Programme (Programa de Aceleração do Crescimento, PAC), specialists speaking to Brazil’s “IG Economia” newspaper recently expressed their concerns related to the low economic growth directly related to the various infrastructure projects happening around the country.
Whist Brazil is not a nation with a noticeable susceptibility to natural disasters, on 12th January 2011 the Serra region in the state of Rio de Janeiro was hit by unprecedented rains which killed an estimated total of 1,133 people and displaced many more. Much of the damage done was not merely due to the weather itself but more to a lack of preventative measures against the forces of nature as well as the abundance of highly vulnerable homes on unsafe hills highly prone to mudslides (a common location of the country´s favelas).
In force as of 12th April (2012), Law number 12587 will place an obligation on Brazilian municipalities with over 20,000 inhabitants to have a number of installations that prioritise public and non-motorised transport (see the law in Portuguese here).
Due to being the location of the headquarters of the Brazil Real Estate & Land Investment Guide as well as our associated projects via the Fez Tá Pronto Construction System, we have translated an article which recently appeared in the Brazil’s Exame magazine using research by consultancy Deloitte – indicating the North Fluminense and South Capixaba of Rio de Janeiro state as the most dynamic and important growth regions of the country.
The Brazilian Audit Tribunal (Tribunal de Contas da União, TCU) have released a report on the progress of impending World Cup 2014 infrastructure preparations related to airport reformations, urban mobility, stadiums and tourism – concluding that concerns remain as to how projects will be fully concluded.
