A recent investigation led by the Foundation for the Development of Fortaleza Housing (Fundação de Desenvolvimento Habitacional de Fortaleza, Habitafor) has pointed to 660 buildings in the north-eastern city centre that are currently underused, 120 of which have strong potential for residential development.
Statistics recently released by the FipeZap asking price index have shown a broad level of slower price rises that have characterised the Brazilian real estate market in recent years – increasing by 1.6 percent in October compared to 2.7 percent in April of 2011. The measurement analyses prices in six of the nation’s most prominent markets, namely: São Paulo, Rio de Janeiro, Belo Horizonte, Federal District, Salvador, Fortaleza and Recife.
As demand for Brazilian housing credit continues to grow at an unprecedented pace, policy makers have become increasingly concerned about the depletion of wholesale funding accessibility and are currently actively exploring alternatives.
Recently updated statistics released by research organisation Ibope Intelligence has indicated that residential Brazilian real estate prices have shown some initial signs of moving away from the rapid growth that has characterised market behavior in recent years.
A recent announcement made by the Brazilian government run Institute of Geography and Statistics (IBGE) has outlined a new methodology being undertaken to produce an index to monitor the country’s real estate prices. Whilst no date has been confirmed for initial publication, according to a press release by the IBGE: “The manner and procedures for which the index will be calculated for the sector are currently being discussed and will be based on the recommendations of countries and institutions that are already producing these types of indicators.”
The Pão de Açúcar retail group has recently announced their intention to launch 25 real estate development projects in partnership with Brazilian real estate development companies in Rio de Janeiro, São Paulo, Mato Grosso, Pernambuco, Ceará and Goiás states.
President of the São Paulo Construction Industry Syndicate Sergio Watanbe at a recent ‘Business Round Up 2012 Perspectives’ event (in line with the American Chamber of Commerce) has predicted that Brazil’s property building sector will see an average growth level of between 4 and 5 percent for the next 5 years.
With the rapid rises in Brazil’s real estate market values over the last few years, land prices – particularly in the country´s urban areas – have naturally followed suit. According to Professor João da Rocha Lima Jr. from the polytechnic university of São Paulo, proportionate values today in the state as a whole form between 30 and 35 percent of a project’s gross development value compared to 15 and 25 percent a short time ago. This blog outlines the content of a September 2011 article in Brazil’s Exame magazine that focused on highlighting the key differences of purchasing land compared to property and how to avoid the pitfalls commonly encountered.
Luiz Carlos Trabuco, president of Brazil´s third largest banking institution Bradesco, recently stated to the press that the country will not be able to avoid some form of contamination via the effects of the ongoing global economic crisis.
As Brazilian Central Bank Alexander reaffirmed his belief that the country is not experiencing a credit boom, statistics released by Brazil´s ABECIP organisation have pointed that the level of real estate related borrowing conceded by the Brazilian System of Savings and Loans reached R$ 37 billion in the first half of 2011, a rise of 55 percent when compared to the same period of 2010.
