Posts Tagged ‘brazil property’

$47bn set aside for Brazil housing

Posted by Pioneer Land Group in Real Estate.

Last week the Brazil government confirmed its financial strength and stability by announcing over $47bn dedicated to housing construction loans over the next 3 years. With a housing deficit of around 9m units, these affordable houses are desperately needed and cater to the middle class market with properties valued between US$30,000 and US$80,000. Instigated via the government’s “My House My Life” program this effective real estate construction boom is fuelling strong growth amongst numerous Brazilian developers, in turn increasing private equity and FDI (Foreign Direct Investment) in to Brazil, further strengthening the economy.

Considering the increasing consumer wealth it is not only residential real estate that is receiving interest from overseas investors, but a rapid boom is occurring with commercial space including shopping malls that have produced some of the best results for various investment houses over the past few years.

A country with such extensive natural resources, and deep pockets of cash savings, Brazil’s future seems very bright indeed.

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9.1m Brazil families need real estate

Posted by Pioneer Land Group in Real Estate.

National real estate prices are being driven upwards in Brazil supported by an enormous internal demand from middle class families.

According to a recent survey carried out by the Data Popular Institute there are now 9.1 million Brazilian families in Brazil that plan to buy real estate in Brazil over the next 12 months. These families are termed as “middle class” meaning that they have between 3 to 10 times the minimum salary. They are one of the world’s fastest growing middle classes and are the engine behind increased consumer spending and the high demand for homes in Brazil.

This huge increase in the number of middle class families with increased spending power is due to several factors such as the increase in salaries, wider availability of credit and also better education, all a result of the booming Brazilian economy.

For the first time ever Brazil’s middle classes can now acquire mortgages, never previously available, and these are offered at reduced rates to qualifying families so monthly mortgage payments are invariably cheaper than rent.

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