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.
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.
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.
