openPR Logo
Press release

Excellent Year for the Brazil Construction Materials Industry

01-24-2011 05:49 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Obelisk

Obelisk Select Investments in Brazil

Obelisk Select Investments in Brazil

The construction materials industry in Brazil has just closed one of the best years ever. On the back of widely available credit and vast investment in Brazilian real estate and infrastructure, construction costs rose by 7.36% in 2010.
Latest annual figures issued by the Brazilian Statistics Agency (IBGE) point to a nationwide increase in the cost of construction of 7.36%. The total cost of building a square metre in Brazil was R$769.06 at the end of the year with construction materials accounting for R$434.25 of the total.
Some regional figures, particularly those for the north and north east regions of Brazil, show even higher increases. Construction costs in the north went up by 8.84% last year and those in the north east experienced a 7.5% increase. Within the north east, Piauí and Ceará saw the largest hikes in the price of building (9.73% and 9.14% respectively) with Rio Grande do Norte close behind with an 8.3% rise.
For Guido Mantega, Finance Minister under Lula, “the construction industry has been one of the major engines of Brazilian economic growth”. Powering the Brazil construction industry are several factors, all with good long-term prospects.
Perhaps the most important factor is the government social housing programme, Minha Casa Minha Vida. Building 3 million homes by the end of 2014, Minha Casa Minha Vida is responsible for huge investment in property throughout Brazil. The programme is heavily over-subscribed in most cities and a major force behind the current boom in construction in Brazil.
The wider availability of credit, both for developers and homeowners, is also a driving force behind the big increase in construction costs. As mortgages become easier to obtain and lending criteria more flexible, demand for property rises. And the third factor is Brazil’s booming economy whose growing employment and salary levels mean that demand for property in Brazil stands at one of the highest ever.
The good news for those planning investment in real estate or construction materials in Brazil is that these factors are here to stay for the short to medium term. In an interview in the business publication, Valor, Fabio Romão from LCA Consultores stated that “the perspectives are good for all the sectors related to the construction industry”. This includes all manufacturers and suppliers of building materials from basics like cement to finishing touches such as taps.
Further good news for construction in Brazil came at the end of last year when the government announced that building materials will continue to qualify for important tax discounts. These discounts will apply for the whole of 2011 and are a welcome boost for developers and builders, already enjoying booming business.
For Obelisk International, the construction industry in Brazil represents an obvious investment opportunity. The latest figures for 2010 are a clear indication of the power of the industry and those for 2011 will undoubtedly show a similar pattern.

About Obelisk International: Obelisk International offers select investment opportunities in Brazil and gives investors security, profitability and diversity thanks to a combination of close attention to our clients' investment requirements and high quality in-house research and analysis.

For more information on investment in Brazil and to find out about Obelisk International’s latest projects there, contact us on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.

Obelisk
Apdo de Correos 977
29601 Marbella
Spain
Tel: +34 952 820 319
press@obeliskinternational.com
http://www.obeliskinternational.com

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Excellent Year for the Brazil Construction Materials Industry here

News-ID: 159712 • Views: 1561

More Releases from Obelisk

Great Prospects for Investment in Brazil Construction Materials
Prospects for investment in construction materials in Brazil look very good at least until 2016. Industry experts are predicting annual sales of at least R$146.5 billion over the next five years. These sales figures are based on the excellent performance of the construction materials industry in Brazil during 2010 and the expected increase in the number of Brazilian households. This high growth is pushing the demand for new homes and is
Investment in Brazil's Middle Classes
After eight years under Lula, Brazil now has a new president. Like her predecessor, newly-elected President Dilma has pledged to continue investment in Brazil’s new middle classes. Under this investment, Brazil has experienced spectacular economic and social growth. A glance at statistics in key areas since 2002 shows impressive increases in both Brazilian wealth and social status. Although there is still plenty to do to fulfil Dilma’s pledge to end
Civil Construction Investment in Brazil Booming
Latest figures estimate that investment in civil construction in Brazil needs to average R$255 billion a year until 2022. By then, the shortage of property in Brazil should equal that in developed countries. Brazil has a massive housing shortage and the investment needed to reduce it is also massive. According to the latest estimates published by the São Paulo Industry Federation (Federação das Indústrias do Estado de São Paulo/FIESP), around R$3
Brazil is Hottest Investment Destination
Once again, Brazil comes out as one of the world’s top destinations for investment. With great achievements this year, investment in Brazil is looking ahead to even better opportunities. Experts from politics and many walks of business life in Brazil got together last week in São Paulo to discuss Brazil’s immediate future. Meeting at the Reuters Brazil Investment Summit, speakers from investment banking, real estate, equity and Brazilian political life were

All 5 Releases


More Releases for Brazil

Wine in Brazil
Latest Report on Wine in Brazil Similar to other alcoholic drinks, wine saw a total volume decline in 2016, with sales falling by 3%. Although this decline was slower than that seen in the previous year, of 4%, it is clear that the negative economic situation continued to affect consumers’ demand for wine. Since it is perceived by many as a non-essential product, other products and types of alcoholic drinks seemed
Alcoholic Drinks in Brazil
Latest Report on Alcoholic Drinks in Brazil Total volume sales of alcoholic drinks continued to decline in Brazil in both the on-trade and off-trade channels in 2016. Consumers had less available income; therefore were forced to make more rational decisions on what to purchase, taking into consideration their budget and the necessity of each product. For this reason, consumption frequency reduced considerably in almost all categories, and also a downgrade to
Brazil Juice Industry
Brazil Juice Industry Juice in Brazil was directly affected by the unstable economic situation and consumers’ shrinking disposable incomes. After registering a series of double-digit growth rates in off-trade volume terms earlier in the review period, the category registered a flat performance in 2015 and grew by just 2% in 2016. The two most important categories within juice in off-trade volume terms, nectars and juice drinks (up to 24% juice), faced
Brazil: Country Intelligence Report
Brazil: Country Intelligence Report Summary "Brazil: Country Intelligence Report", by GlobalData provides an executive-level overview of the telecommunications market in Brazil today, with detailed forecasts of key indicators up to 2021. Published annually, the report provides the detailed analysis of the near-term opportunities, competitive dynamics and evolution of demand by service type and technology/platform across the fixed telephony, broadband, and mobile, as well as a review of key regulatory trends. SAMPLE REPORT: https://www.reportsandmarkets.com/sample-request/brazil-country-intelligence-report-1613311 GlobalData
Packaged Water in Brazil
ReportsWorldwide has announced the addition of a new report title Packaged Water in Brazil to its growing collection of premium market research reports. Packaged Water in Brazil industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2011-15, and forecast to 2020). The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market. Synopsis: Essential resource
Airlines in Brazil 2017
ReportsWorldwide has announced the addition of a new report title Airlines in Brazil 2017 to its growing collection of premium market research reports. Airlines in Brazil industry profile provides top-line qualitative and quantitative summary information including: market size (value and volume 2012-16, and forecast to 2021). The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market. Synopsis: Essential resource for top-line data