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Brazilian consumer rights programme “Proteste Já” recently investigated a real estate development project located in Campinas, São Paulo – supposed to be delivered in May 2012 that has seen no progress since its launch in 2009. As demonstrated via an undercover camera filming a conversation at the local sales office, the construction company – PDG Developments – has continued to take holding payments and market the units, despite a number of issues related to authorisation by the local prefecture.

In another feature extracted from the Estadão news site series examining bureaucracy in Brazil, it is indicated that the property transfer process generally has a tendency to be more complex depending on the location within the country. In the central regions, for example, the majority of the necessary certifications are available via the internet and the property can be registered comfortably in an average of 15 days. However, as indicated by Marina Maccabelli – lawyer at Demarest & Almeida – processes can be delayed due to extra demands being made for the registration of mandatory certificates and other documentation.

The Estadão news site recently published a number of feature articles and case studies examining the debilitating issue of bureaucracy in Brazil – addressing a range of sectors from customer services to health and inheritance. This blog post provides an outline of the salient points made in relation to the granting and execution of credit finance.

Whilst long term expectations continue to remain positive for Brazilian real estate companies, the globally leading banking institution Credit Suisse has recently recommended that investors take some caution – stating (in a client note published in São Paulo’s Estadão newspaper): “values appear attractive, but the lack of visibility over finances bring a cautionary vision towards the sector in the short term.”

BR Properties has recently announced the purchase of shares representing the social capital of the Ventura Brasil Real Estate Development company, valuing at R$ 746.25 million. Ventura Brasil is the owner of a commercial property located in central Rio de Janeiro with a total area of 45,577 m².

The ongoing financial difficulties of one of Brazil´s former prominent real estate developers – Gafisa – were confirmed in the form of reported a liquid loss of R$ 1.093 billion in 2011 (compared to a liquid profit of R$ 416.1 million in 2010).

At the launch of a report published by the Rio de Janeiro Housing Syndicate (Sindicato da Habitação do Rio, Secovi-RJ), city mayor Eduadro Paes commented that prices increases have been “crazy” and that the prefecture itself has a responsibility in this area. The comments somewhat contradict those made in a BBC interview a few weeks previous where Paes stated: “I think it [the property boom] is a good thing and is helping the rediscovery and construction of areas that were degraded… I believe it is a special moment for the city and should not be viewed negatively – in the future, the situation may turn but the market is fair.”

It was announced on Thursday 28th March that the US-based Equity International group has acquired a “significant share” of the Paraná based developer Thá (the exact figure was not revealed). Established in 1895, the Thá’s operations are based in Paraná and Santa Catarina and the group has developed over 2,000 residential, commercial, industrial and hotel real estate projects.

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...

Economist Samy Davy from prominent research institution and university the Getúlio Vargas Foundation titled a recent blog post: “Don’t Let the Property Bubble Explode in Your Hands” – from which salient points have been translated in this post.