Brazil Property Development Not Dependent Upon Minha Casa Minha Vida

March 15, 2011 - PRLog -- The Sao Paulo Federation of Industry recently had a study carried out, which calculates a shortfall of approximately 7.2 million properties in Brazil at this time.

While this is a huge shortfall, the 7.2 million deficit does not take into account the rise in population. This factor will undoubtedly place extra pressure on the real estate market in Brazil. The study finds that the current number of required households (63.6 million) will rise to 79.5 million over the next 12 years. This 25% increase will, in turn, generate its own shortfall in supply of property.

This combination of a rising population and an already chronic housing supply shortage will result in the Brazilian development and construction industry needing to produce 23.1 million homes by 2022, an investment in Brazil that is projected to run to R$3.2 trillion.

A report by Ernst & Young in 2010 found that 37 million properties are needed in Brazil by 2030.  Both of these reports do not include replacement of sub standard housing and shared housing.

There is much hype in the European and North American market regarding the Minha Casa Minha Vida programme (MCMV) and many real estate agencies are promoting first home development under this banner.  The MCMV project will R$105.7 million of investment in Brazil over the next five years to build 3 million homes for low-income families.

However, the bulk of investment in Brazilian real estate will come from the private sector as developers build hundreds of thousands of homes to reduce the shortage. In total, R$3.2 trillion will have to be invested to keep up with demand, a figure that translates into massive opportunities for real estate investment all over Brazil.

With steady pressure on the property market in Brazil from ever-increasing demand – likely to last the next two decades – Brazil Property Administration expects investment opportunities to also increase. This means that Brazilian property development represents one of the best investment scenarios around.

The problem for international investors is locating professional development and project managers to manage their developments.   Brazil Property Administration is a trusted and respected property consultancy based in Joao Pessoa, North East Brazil. We specialize in serving the needs of developers and investors.

We are owned and managed by a professionally-qualified multilingual team that combines local knowledge and experience with an international perspective to help you realize the potential of your Brazilian property investment.

We offer a range of services for both corporate and private clients spanning the North East coast from Recife/Pernambuco in the South to Fortaleza/Ceará in the North.

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Brazil Property Administration is a leading supplier of consultancy services to development companies, investors and individual land and property owners in North East Brazil. The company is based in Joao Pessoa, Paraiba.