Brazil Real Estate Report Q1 2011: New research report available at Fast Market Research

Nov. 18, 2010 - PRLog -- The Brazilian real estate market is expected to continue growing, unaffected by the second round of the presidential election at the end of October 2010. The civil construction and domestic mortgage booms will continue, alongside rising property prices and demand. In the election, Dirma Rousseff won the most votes in the first round of votes on October 4, and must now gain over 50% of the votes to beat rival Jose Serra in the second round. She is widely expected to succeed.

Brazil's economy has performed strongly in 2010. We have revised up our forecasts for Brazilian real GDP growth to 7.2% and 4.5% in 2010 and 2011 respectively (from 6.0% and 3.6% previously), on the back of stronger than anticipated Chinese demand and expansionary credit conditions. Private consumer spending, investment and a strong export sector will be the key drivers of growth, as well as the impetus to investment and tourism provided by the 2014 FIFA World Cup and the 2016 Olympics.

Following interviews this year with local sources, it has emerged that net rental yields in Sao Paulo and Rio de Janeiro have fallen sharply, while rental rates are consolidating. These movements demonstrate that capital values have soared in the office, retail and industrial sectors. While rents in Sao Paulo and Rio de Janeiro have stabilised, there has been a modest increase in Fortaleza, signifying office space supply has caught up with demand, after being at a low level at the beginning of 2010.

Local interviewees predicted that there will be a steady growth in rents beginning in 2011, which may extend to double-digit growth in some sub-sectors. Rental yields will gradually fall in Rio de Janeiro and Sao Paulo, with capital values increasing relative to rental rates. Rental yields are expected to remain steady in Fortaleza.

Brazil's Agrarian Development Ministry confirmed in June that foreign real estate investors wishing to purchase agricultural land will face tighter restrictions. This measure is designed to protect Brazil's food, water and other natural resources.

A program to create affordable housing for low-income Brazilians, the Minha Casa, Minha Vida (My House, My Life) campaign, has been in place since March 2009. It is a means of addressing the housing shortfall of about 10mn houses, as well as alleviating the wide inequality gap. The government plans to build over 4mn houses by the end of 2014 (including 1mn in 2010), and has provided an initial outlay of over BRL64bn. The program is seen as one factor sustaining Brazil's healthy housing market.

A new official commercial property index is being developed for Brazil jointly by a leading research institution and a university, FGV and IBRE. It is expected launch in late 2010, and will increase transparency in the sector, especially given the ambiguity of current statistics, which generally rely on real estate agents and portals.

For more information or to purchase this report, go to:
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Partial Table of Contents:

Executive Summary
SWOT Analysis
- Brazil Real Estate SWOT
- Brazil Economic SWOT
- Brazil Business Environment SWOT
Regional Real Estate Overview
- Table: Latin American Office Markets At A Glance - Rental Costs, 2009-2011 (US$ per m2 per month)
- Table: Latin American Retail Markets At A Glance - Rental Costs, 2009-2011 (US$ per m2 per month)
- Table: Latin American Industrial Markets At A Glance - Rental Costs, 2009-2011 (US$ per m2 per month)
Real Estate Market Overview
- Table: Brazil's Real Estate Market - Rentals, 2008 And 2009 (msq/month, BRL)
- Table: Brazil's Real Estate Market - Net Yield (%)
- Table: Brazil's Real Estate Market - Terms Of Contract/Lease
- Table: Brazil's Real Estate Market - Available And Vacant Space (msq)
Forecast Scenarios
- Real Estate Outlook
- Table: Brazil Real Estate Markets - Forecast Net Yield (%)
- Construction And Infrastructure Outlook
- Macroeconomic Outlook
- Table: Economic Activity
Business Environment
- Real Estate/Construction Business Environment Ratings
- Table: Latin America Business Environment Ratings
- Brazil's RECBER
- Latin America Project Finance Ratings
- Table: Design And Construction Rating
- Table: Commissioning And Operating Rating
- Table: Overall Project Finance Rating
- Brazil's Business Environment
- Table: BMI Business And Operation Risk Ratings
- Table: BMI Legal Framework Rating
- Table: Labour Force Quality
- Table: Foreign Direct Investment Inflows Into Latin America, 2006-2008
- Table: Brazil's Top Export Destinations, By Destination Country, 2001-2008 (US$mn)
- Table: Trade And Investment Ratings
Company Monitor
- BR Malls Participacoes
- Grupo Camargo Correa
- Construtora Norberto Odebrecht
- Even Construtora e Incorporadora (EVEN SA)
- Multiplan Empreendimentos Imobiliarios
- OAS
- Trisul
BMI Methodology
- How We Generate Our Industry Forecasts
- Construction Industry
- Bank Lending
- Real Estate/Construction Business Environment Rating
- Table: Weighting Of Indicators
- Project Finance Ratings Indicators
- Table: Design And Construction Phase
- Table: Commissioning And Operating Phase - Commercial Construction
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Full Table of Contents is available at:
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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.