Huge Potential for Brazilian Real Estate in 2011 | Obelisk International
For the majority of sectors associated with Brazilian real estate, 2010 was the best year ever for investment in Brazil. And all sectors are unanimous in predicting further excellent business beyond 2014.
The latest issue of ‘Revista SFI’, published by the Brazil Mortgages Association (ABECIP), offers an in-depth analysis of the current situation in the Brazilian property market with detailed insight from sector experts. The article finds that all sectors linked to real estate in Brazil (bankers, developers, suppliers, unions etc) are convinced that the property market will continue to grow healthily over the next few years.
Brazilian Mortgage Levels
The President of ABECIP, Luiz França, predicts that mortgages in Brazil will increase by 51% this year based on GDP growth of 4.5% and the continued rises in both salaries and employment. Mr França points out that in 2010 the value of Brazilian mortgages increased as well as the number of units financed. “This shows that average house prices increased, reflecting the healthy state of the market,” he says.
For Jose Machado, the Director of Santander in Brazil, 2010 was the best year so far for the sector. He believes that “everything points to 2011 delivering similar results,” because of the acute lack of supply of property in Brazil and the current low credit levels. Other banks in Brazil such as Bradesco, Caixa (the largest provider of mortgages in Brazil) and Itau echo these predictions.
North East Brazil Ahead in Growth
Joao Crestana, President of the Sao Paulo union of real estate businesses (Secovi), also believes in the healthy state of the Brazilian property market. He underlines the country-wide growth but highlights the north east of Brazil as a region where real estate construction and transactions are growing at a higher rate than other regions.
The article also includes improvements that Brazilian real estate experts would like to see. Several interviewees feel it’s important that Brazil’s credit facilities grow to provide an alternative to government financing when the Minha Casa Minha Vida social housing programme ends in 2014. And several voice concern over the lack of building land in Brazil’s largest cities such as Rio de Janeiro and Sao Paulo.
The article interviewees conclude that the factors driving the property market in Brazil mean there is plenty of room for growth. The article states that the Brazilian real estate market currently accounts for just 4% of Brazil’s GDP and that by 2014 this figure will have increased to 11%.
For Obelisk International, this room for growth proves beyond doubt the huge potential for investment in Brazilian property over the next few years. Obelisk International believes 2011 will be an exceptional year for real estate investment across all sectors of society in Brazil, from low-cost social housing to high-end luxury properties.
Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
The latest issue of ‘Revista SFI’, published by the Brazil Mortgages Association (ABECIP), offers an in-depth analysis of the current situation in the Brazilian property market with detailed insight from sector experts. The article finds that all sectors linked to real estate in Brazil (bankers, developers, suppliers, unions etc) are convinced that the property market will continue to grow healthily over the next few years.
Brazilian Mortgage Levels
The President of ABECIP, Luiz França, predicts that mortgages in Brazil will increase by 51% this year based on GDP growth of 4.5% and the continued rises in both salaries and employment. Mr França points out that in 2010 the value of Brazilian mortgages increased as well as the number of units financed. “This shows that average house prices increased, reflecting the healthy state of the market,” he says.
For Jose Machado, the Director of Santander in Brazil, 2010 was the best year so far for the sector. He believes that “everything points to 2011 delivering similar results,” because of the acute lack of supply of property in Brazil and the current low credit levels. Other banks in Brazil such as Bradesco, Caixa (the largest provider of mortgages in Brazil) and Itau echo these predictions.
North East Brazil Ahead in Growth
Joao Crestana, President of the Sao Paulo union of real estate businesses (Secovi), also believes in the healthy state of the Brazilian property market. He underlines the country-wide growth but highlights the north east of Brazil as a region where real estate construction and transactions are growing at a higher rate than other regions.
The article also includes improvements that Brazilian real estate experts would like to see. Several interviewees feel it’s important that Brazil’s credit facilities grow to provide an alternative to government financing when the Minha Casa Minha Vida social housing programme ends in 2014. And several voice concern over the lack of building land in Brazil’s largest cities such as Rio de Janeiro and Sao Paulo.
The article interviewees conclude that the factors driving the property market in Brazil mean there is plenty of room for growth. The article states that the Brazilian real estate market currently accounts for just 4% of Brazil’s GDP and that by 2014 this figure will have increased to 11%.
For Obelisk International, this room for growth proves beyond doubt the huge potential for investment in Brazilian property over the next few years. Obelisk International believes 2011 will be an exceptional year for real estate investment across all sectors of society in Brazil, from low-cost social housing to high-end luxury properties.
Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
Labels: Brazil, Brazil property investment, Brazilian real estate, investing in Brazil, investment in Brazil, investments, MCMV, Minha Casa Minha Vida, Obelisk International, property investment
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