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Follow on Google News | Over 9 Million Buyers for Brazilian Real Estate9.1 million families plan to buy real estate in Brazil over the next 12 months. This is a huge increase since the Minha Casa Minha Vida programme was introduced in 2009.
A recent survey carried out by the Data Popular Institute has found that 9.1 million Brazilian families intend to buy a property in Brazil over the next year. This purchase would allow them to leave rental accommodation and become property owners. The subsidies and benefits included in the social housing programme Minha Casa Minha Vida mean that buying instead of renting is an increasingly popular option. Minha Casa Minha Vida offers reduced mortgage interest rates to qualifying families so monthly mortgage payments are invariably cheaper than rent. The number of potential buyers of Brazilian real estate has increased dramatically since Minha Casa Minha Vida first made its appearance in 2009. Less than two years ago, 4.2 million families had serious plans to buy property, a figure that is now more than twice as high. This massive hike is due to several factors such as the increase in salaries, wider availability of credit and better education, all part of the bigger picture of a booming Brazilian economy. Middle Class Drives Property Investment Brazil has one of the world’s fastest growing middle classes and this is the social sector where demand for a home is highest. Of the 9.1 million families, Data Popular found that the majority lie within the 3 to 10 times minimum salary income bracket. This sector, known as Class C, is the major engine behind consumer spending in Brazil with an ever bigger appetite for all kinds of consumer goods from health foods and flat-screen televisions to cars and real estate. Brazilian families would, according to the survey, like to buy a house rather than an apartment and the Minha Casa Minha Vida caters for both types of property. However, lack of available land means that houses form a smaller part of the programme than apartments, particularly in the large cities. Another obstacle in the way of the 9.1 million dreams of new homes in Brazil is that the Brazilian property market is still relatively small. And, although civil construction in Brazil is booming, this huge demand is unlikely to be fulfilled in near future. New Prices for Minha Casa Minha Vida Property To help ease the pressure on supply in the Minha Casa Minha Vida programme, the Brazilian government has just raised the ceiling on social housing prices. The previous price limits meant that many middle class families were excluded, particularly those earning between 3 and 10 times the minimum salary. The new ruling on maximum prices varies depending on the size of the municipality. For example, in Natal in north east Brazil, the top price for Minha Casa Minha Vida real estate is now R$150,000 (up from R$130,000). In the metropolitan area around Natal (Grande Natal), the most expensive Minha Casa Minha Vida properties now cost R$130,000 instead of R$100,000. These price changes should lead to more flexiblity within this sector of the Brazilian real estate market and more importantly, allow more choice. Last year, high demand for low-cost property in Brazil meant many aspiring homeowners were unable to buy where they wanted. In terms of opportunities for investment in Brazil, Obelisk International sees the latest developments in the Minha Casa Minha Vida programme as an added advantage. The potential for investment is opened up still further. And with 9.1 million buyers, Obelisk International believes this potential is likely to last for years to come. About Obelisk International: For more information on investment in Brazil and to find out about Obelisk International’ # # # About Obelisk International: For more information on investment in Brazil and to find out about Obelisk International’ End
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