A survey of companies undertaken by the Brazilian Association of Construction Materials (Abramat) showed that the number that plan to invest in the next 12 months has decreased by 71 percent in October compared to 77 percent in September.
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.
A precedential decision was recently made at the Superior Tribunal Justice Court of Santa Catarina which confirmed that banking institutions involved in construction finance now have co-responsibility for defects that appear during project development.
Lopes – Brazil’s largest estate agency group – has recently stated that it will be gearing up its presence in the second hand home sales market, a segment which the company previously viewed as ‘marginal’ according to vice-president Marcello Leone in the Exame magazine.
The São Paulo Housing Syndicate (Secovi-SP) has recently announced the cancellation of their annual real estate exhibition due to what they stated was a ‘lack of supply of stock to publically demonstrate’.
Research undertaken by the Construction Industry Syndicate of São Paulo (Sinduscon-SP) and the Getúlio Vargas Foundation (FGV) has demonstrated a 7.6 percent drop with regards to positive perceptions related to sector growth when comparing August 2011 with the same month in 2010.
With a common belief across the Brazil property industry that the rapid price rises witnessed over the last couple of years are calming down, several experts – speaking to the Estadão newspaper – are pointing to more favourable conditions to negotiate discounts off open market values.
The latest estimations from the São Paulo Construction Syndicate (SINDUSCON-SP) has pointed that industry growth for 2011 should reach approximately 5 percent, one percentage point above Brazilian GDP expectations.
