Filed under articles
Room to Grow in Brazil Real Estate Investment
Brazil is currently a center of international real estate investments. The developers at all levels have experienced strong and steady quarterly earnings announcement of the new developments. Mortgage financing is also enjoying a heyday with almost all Brazilian banks announcing new records almost every month.
More importantly, the demand for real estate in Brazil at unprecedented levels. Moreover, the demand expected to remain high for the foreseeable future, despite the enormous increase in the Investment Real Estate.
Sales activity is at record highs and developers struggle to meet the growing number of Brazilians who want to follow get on the property ladder. While in the 90s, Brazil was 100000-200000 units per year building, this figure is now closer to 800,000. However, there is not enough, which means that there is no danger of a housing bubble in Brazil. Managing Director of CEO Realty (one of the leading Brazilian real estate companies), Zeca Grabowsky recently told Reuters that demand. “. It is far from a bubble, this request is genuine.” He said: “These are people to buy their house for the first time.”
For most developers with investments in Brazil, PDG Realty has record profits for the third quarter of this year announced. With the profits of R $ 262 million, Chief Executive Realty is seeing booming sales. Compared to the same quarter in 2009 CEO Realty real estate sold 62% more from July to September this year and threw 79% more units.
Volumes of construction in Brazil this year have approached those of Mexico, a country that is much lower in terms of both size and population. Due to the enormous size of Brazil and the demand for goods is Mr. Grabowsky convinced that there is much room for further construction.
Attempts are being made to the demand for goods in Brazil needs. At the lower end of the scale of real estate prices, the government program is held by the housing, Minha Vida Minha Casa currently building 3 million homes for low income families. However, these are only 40% meet the demand for housing in the lower middle classes.
Homes for wealthy Brazilians dive all over the country, but they are probably not sufficient. The growing population and increasing purchasing power are continually added to the demand. Ernst & Young predicted that 37 million homes will be built in Brazil in the next 20 years. In terms of property investment, this is a real demand.
For the Obelisk, the levels of demand for goods in Brazil, one of the reasons why we believe that investment opportunities are so good. Our Brazilian investments include various areas of real estate, all powered by the relentless demands of Brazil with electricity. Like other real estate companies, we are also convinced that the demand in Brazil is here to stay with him and some of the best available options for high yields.