Biggest Brazilian Real Estate Investment Expands

Feb. 6, 2012 - PRLog -- Obelisk International News, February 6 1012. Building 3 million properties in Brazil by the end of 2014, the Minha Casa Minha Vida social housing programme is by far the biggest investment in Brazilian real estate. And according to a recent announcement by the Brazilian President, it’s about to expand.

Speaking in Sao Paulo recently, President Dilma Rousseff said the government’s intention was to increase the number of properties in Minha Casa Minha Vida by 400,000. This addition will bring the total number of social housing units in the programme to 3.4 million. The Brazilian government will be making a final decision on the social housing expansion before June this year.

Brazilian Investment Helping Meet Demand

The announcement has not surprised companies with investment in Brazil social housing. Obelisk International, active in Minha Casa Minha Vida projects in north east Brazil, believes it’s a natural progression. “Even though it’s large scale, the programme still isn’t meeting demand,” says Gary Hardacre, CEO of Obelisk International, “and Brazilian society will more than welcome this expansion.”  

The extra 400,000 properties will be aimed at Brazilian families earning 0 to 3 times the minimum wage. Already the main beneficiary of the Minha Casa Minha Vida programme, this social sector suffers from the greatest shortage of properties in Brazil – analysts in Brazilian real estate believe the shortfall of homes runs to between 7 and 13 million.

Exceptional Financing Conditions

One of the mainstays in Brazil’s social housing programme is its exceptional financing conditions. Mortgages for families in the 0-3 times minimum wage bracket consist of 120 monthly instalments ranging from a minimum of R$50 to a maximum of R$160 with no family paying more than 10% of their monthly income. These financial terms are also one of the reasons behind the huge success of this massive investment in Brazilian real estate.

Caixa Economica Federal, the public bank providing mortgages and developer finance for the Minha Casa Minha Vida programme, has just announced record loan figures in 2011. Caixa reports that total loans provided by the bank last year came to over R$80 billion and according to the bank’s President Jorge Hereda, a large part of the loans correspond to Minha Casa Minha Vida. Since the launch of the social housing programme, Caixa has issued contracts for 1.4 million properties in Brazil totalling R$87 billion.

About Obelisk International: Obelisk International offers select investment opportunities in Brazil in a range of sectors such as social housing, residential real estate and construction. Obelisk 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 Brazilian investments and to find out about Obelisk International’s latest opportunities for investment in Brazil, contact us on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.  Follow us on Twitter – @obeliskinvest and Facebook. Join the Obelisk International network on LinkedIn.

# # #

Obelisk International offers select investment opportunities in Brazil in a range of sectors such as residential real estate, construction and social housing.