Figures released by the Ministry of Cities show that by the end of December, a total of 1 million homes within Minha Casa Minha Vida will be under approval, built or completed. This massive real estate project in Brazil has already seen 170,000 homes completed this year with another 110,000 expected to handed over to low-income families over the next two months.
The Minister of City, Marcio Fortes, highlighted the success of Minha Casa Minha Vida so far and stressed the flexibility shown by the main parties involved in the project. Between them, the ministry, developers and Caixa bank (the provider of finance and mortgages for these properties in Brazil) are pulling out all the stops to ensure the project is a success.
Hardly a week goes by without the completion of a new Minha Casa Minha Vida project somewhere in Brazil. President Lula was recently in one of the Rio de Janeiro suburbs where he officially inaugurated the latest social housing complex to be completed in the city. The 910-home development is for Lula “a clear demonstration of how you can change the lives of the Brazilian people for the better”.
Minha Casa Minha Vida is one of the Brazilian government’s flagship programmes to reduce poverty in Brazil and allow families to buy an affordable property. Investment in the programme runs to R$105.7 billion for a total of 3 million homes to be built by the end of 2015.
The size of the investment means the project has plenty of spin-offs. Solar energy installations in the properties throughout Brazil are just one of them. The government recently approved subsidies for solar energy in Minha Casa Minha Vida homes making this one of the latest opportunities for investment in Brazil.
The construction industry is also benefitting hugely from the increase in property building under Minha Casa Minha Vida. The National Construction Index is registering regular monthly increases – the latest for October points to a national rise of 0.51% on September’s figure and an accumulative figure of 7.26% for the last 12 months. Last month, the north east of Brazil saw the highest regional rise in the cost of construction with Rio Grande do Norte leading the provinces with an increase of 5.03%. Construction materials have gone up by 7.53% in Rio Grande do Norte this year, reflecting the big investment in property and infrastructure in this part of Brazil.
Minha Casa Minha Vida forms part of Obelisk’s proposals for investment in Brazil. As this giant housing project moves forward, Obelisk believes we can expect to see plenty more opportunities coupled with high returns.
About Obelisk: Obelisk offers select investment opportunities in Brazil and gives investors security, profitability and diversity thanks to a combination of close attention to our clients' investment requirements and high quality in-house research and analysis.
For more information on investment in Brazil and to find out about Obelisk’s latest projects there, contact us on 0034 952 820 319. Via email: email@example.com or visit our website: www.obeliskinternational.com.
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Obelisk offers select investment opportunities in Brazil and gives investors security, profitability and diversity thanks to a combination of close attention to our clients' investment requirements and high quality in-house research and analysis.