A survey of members of the Association of Foreign Investors in Real Estate (AFIRE) has placed the Brazilian real estate market in second place in terms of attractiveness in 2012 – above China and all countries within Europe. São Paulo was also indicated as the fourth most attractive metropolitan region (after New York, London and Washington) – moving up from 26th position in 2011.
Prominent Brazilian research organisation the Getúlio Vargas Foundation (FGV) recently published an annual property construction industry confidence report which concluded that their associated measurements had fallen by an average of 10.2 percent between September and November 2011, compared to the same period of 2010.
Brazil’s government administered construction cost index (Índice Nacional da Construção Civil, SINAPI) has seen a 0.37 percent average rise in the month leading up to November 2011 – representing a 5.52 increase over the 12 previous months.
According to Valdecy Gusmão of the Recife (Pernambuco, North East Brazil) Official Property Registry Office, a significant proportion of real estate has not been registered correctly in the metropolitan area – with regions such as Tamareira, Casa Amarela, Casa Forte and Poço only having between 5 and 10 percent of properties listed.
Despite what was recently reported as a liquid profit level of R$ 752 million for 2011 (as at November), the number of legal cases being taken against PDG Realty has offset what would normally be a reason for the prominent real estate developer to celebrate.
Sector price rises gained further force in November at 0.5 percent, according to the Brazilian Index of Construction Market Costs (Índice Nacional de Custo da Construção – Mercado, INCC-M) – compared to 0.2 percent in October. Up until November, the INCC-M accumulated a total increase of 7.21 percent in 2011 and 7.84 percent over the previous 12 months.
Recent data released by the Department of Statistics and Socioeconomic Studies (Departamento Intersindical de Estatística e Estudos Socioeconômicos) has reported Brazil´s real estate construction sector has the highest turnover rate of all industry. In 2009, 86.2 percent of construction sector employees were discharged from work (excluding retirees, death or voluntary departures).
Data released by the São Paulo Housing Syndicate (SECOVI-SP) has demonstrated that rental requirements of new agreements have risen by 2.2 percent when comparing September to October – bring the total rise to 19.66 percent for the year up to this latter month. According to the organisation, this represents the largest rise within a one year period since the research started in January 2005.
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.
Despite growing concerns of the implications of a peaking Brazilian property market, recent condominium delinquency statistics in the country’s largest and wealthiest metropolitan region São Paulo have demonstrated a drop of 2.59 percent when comparing September to October 2011.
