A translated article written by Ruban Selvanayagam for the Mercado Impacto blog (also republished on Next Billion Brasil)… One of the most enigmatic questions surrounding sustainable growth in the large majority of emerging nations is how to reach the increasingly complicated goal of delivering dignified housing to the majority of the population, both in a socially and environmentally cohesive manner.
Ruban Selvanayagam interviews Fernando Haddad Moura from the base of the pyramid housing organistion, TETO Brazil – exploring community intervention and transitional housing in Brazil´s favelas.
A recent online article published by GLOBO, Rio de Janeiro has reported that several of the larger Minha Casa, Minha Vida housing developments are witnessing a range of post-conclusion management issues – principally related to payment delinquencies on water, light, gas and condominium management costs (in some cases reaching 90%) as well as the growth of informal business activity, illegal energy tapping and even drug dealing.
A news report published in January 2014 on the 13 month delay of a 1,500 low income housing development constructed under the “My House, My Life” program in Espírito Santo (south east Brazil) – a problem exacerbated by the heavy storms that hit the region in recent months.
Some interesting commentary directly extracted from the Bolha Imobiliária (Property Bubble) blog – exploring the performance of three of Brazil´s leading real estate developers: MRV, Rossi and Cyrela. Note the text is not entirely reflective of my own market opinions.
Whilst still favourite at the opinion polls, on the cusp of the Worker´s Party re-election campaign, the pressures on Dilma Rousseff´s government continue to intensify as the discontentment demonstrated during the manifestations continues, the Mensalão corruption scandal protagonists become seemingly immune the weight of the law and a wave of...
Please see the September 2013 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 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 recent analysis undertaken by Robert Shiller, Yale University professor and co-creator of the Case-Shiller US home price index, pointed that the housing bubble bursts principally in Rio de Janeiro and São Paulo could have harmful effects on the Brazilian economy. “I am not affirming that there is a property...
The recently published data by real estate developer Gafisa reported that in the first quarter of 2013, a total value of R$ 191 million was lost in cancelled pre-construction housing contracts compared to R$ 101 million in the last quarter of 2012. Speaking to the Construction Market (Construção Mercado) portal, president of the group Duilio Calciolari stated that the cause was the “high volume of deliveries of units in the second half of 2012”. The Viver real estate development company also reported cancellations totalling R$ 56.8 million in the first quarter of 2013 which has led to a 72% decrease in revenue levels compared to the same period of 2012.
In preparation for the 2014 World Cup and South America’s first Olympic Games in 2016, Rio de Janeiro has attracted large investments – not only in the games themselves but, perhaps more importantly, in overcoming the massive divides in living standards in the city…