Follow on Google News News By Tag * Brazilian Real Estate * Property In Brazil * Brazilian property market * Investment In Brazil * Minha Casa Minha Vid * More Tags... Industry News News By Location Country(s) Industry News
Follow on Google News | Brazilian Real Estate Market in 2011While investment in property in Brazil was rewarding in 2010, the good news is that 2011 looks set to be even better.
A group of Brazilian real estate experts recently analysed the property market in Brazil and asked the vital question: what’s in store for the industry in 2011? And their findings show that both residential and commercial properties in Brazil are in for another good year. In the report, produced by the Sao Paulo University Real Estate Department, the experts find that investors can expect 2011 to be an even better year than last year in terms of demand and prices. These Brazilian real estate experts find that demand and price rises will be higher among the middle classes, and that developers should prioritise investment in the Minha Casa Minha Vida programme. According to the experts, demand for residential property from the upper class (known as Class A) is predicted to remain stable. Demand for homes from the middle classes (Classes B and C) will increase somewhat and demand from the lower classes (Class D and E) will grow significantly in Brazil. Social Housing Investment This growing demand from the Brazilian middle classes, particularly Class C, means developers should focus on investment in social housing in Brazil encompassed within the government-backed Minha Casa Minha Vida (MCMV) programme. This market is already booming and expected to expand further since the recent government announcement that price ceilings are to raised. However, the Real Estate Department points out that even with social housing, the old adage of ‘location, location, location’ is vitally important. These experts advise that all MCMV development take place in desirable areas with public transport, schools, amenities and workplaces within easy reach. The right location will ensure that demand for MCMV properties in Brazil is high. Real Estate Prices in Brazil Property prices are never easy to predict but the Sao Paulo University experts believe that higher prices can be expected this year in Brazil. Among Class A, they expect real estate prices – like demand in this social sector – to stay at 2010 levels. In the middle classes – and once again like demand for property in Brazil amongst Classes B and C – they predict a marked increase with prices considerably higher this year. Brazilian real estate prices are difficult to track as there are no property indices, but all market analysts have observed significant price hikes. These have been particularly strong in Brazil’s largest cities, although property prices in most parts of the country experienced an increase of at least 10% last year. Right Location for Investment For the Brazilian real estate experts, demand for property from middle and lower classes will be considerably higher in 2011 in several parts of Brazil. These include the two biggest cities – Sao Paulo and Rio de Janeiro – and several states such as the north and the north east. However, regardless of location, one factor is a given in the Brazilian property market –demand for property is universal, particularly among the middle and lower classes. For PricewaterhouseCoopers, “you can build housing forever and people will want it” and Ernst & Young predict 37 million homes will be built throughout Brazil by 2030. Based on our experience during 2010, Obelisk International is expecting 2011 to be another excellent year for investment in Brazil property. Our opportunities for investment in social housing in 2010 were hugely successful and we are following suit in 2011. For Obelisk International, the Brazilian middle classes with their endless demand for property present perfect opportunities for investment. 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
Account Email Address Disclaimer Report Abuse
|
|