Amongst the increasingly wider consensus that the current cycle of Brazil´s real estate market has finally peaked, many commentators often forget the sheer size of the country and that each of the 27 states has its own specific characteristics related to population size, demand, demographic makeup, infrastructure and existing stock...
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.
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.
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.
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 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.
