Brazil Real Estate Development Projects
With Brazil's housing market witnessing rapidly growing prices in a relatively short space of time, a number of core issues have placed increasing difficulties on what has become a paradoxical situation of extremely high demand contrasted with an equally low level of supply – particularly for the majority base of the pyramid sector which government statistics state as having a deficit of 6.9 million units.
The scale of the problem remains very apparent when visiting the majority of Brazil's metropolitan and periphery regions where much of the low income population live in sub-standard living conditions such as favelas, squats or poorly built town houses. In fact, official classifications do not include such ‘housing', bringing the actual deficit to between an estimated 15 and 30 million units. Whilst Brazil's Minha Casa, Minha Vida (My House, My Life) recent attempts at introducing a policy of housing subsidies are to be commended, the programme has failed to focus on the real needs of the market – so much so that the leading construction companies have moved away from the sector due to a lack of financial viability.
Developing this site has enabled me to network with a range of Brazilian specialists in the sector and, in 2010, I was introduced through a mutual contact to the work of an experienced real estate construction company based in Macaé, Rio de Janeiro: Exitus Administration, Conservation and Construction. The company focus on building high quality low income housing developments via a revolutionary construction system entitled Fez Tá Pronto. Using a patented gypsum plaster block within a copyrighted, tried and tested construction model, many of the archaic methodologies commonly used not only in Brazil but across the planet are overcome – all whilst maintaining the very best standards of technical adherence, resistance and finishing normally reserved for the luxury housing sector. From a financial perspective, due to the fact that our production costs are a minimum of 40 percent lower than market averages, we are able to effectively meet the extremely high demands of the low income sector – offering financial installments that are cheaper than rents being charged by illegal landlords in Brazil's favela communities. For this reason, we are also able to offer guaranteed returns for our finance partners.
The system has been developed, implemented and consolidated via various projects in the state of Rio de Janeiro, all approved for the purposes of mortgage finance by the prominent home lenders in Brazil, namely: the Caixa Econômica Federal, Banco do Brasil, Banco Itaú and Banco Real (now merged with Santander).
What makes the programme more than just an excellent investment opportunity are the accompanying wide ranging social and environmental benefits which are simply unprecedented for the global base of the pyramid housing sector. These essential benefits and more are detailed on our website, which can be viewed via the banners to the left and right or by clicking here.
