openPR Logo
Press release

Carnival Time for Brazilian Real Estate by Obelisk International News

09-06-2011 08:49 AM CET | Industry, Real Estate & Construction

Press release from: Obelisk International

Obelisk International - Brazilian Investments

Obelisk International - Brazilian Investments

A chronic shortage of property, 1.5 million new families a year and a burgeoning middle class all bring strong growth for the Brazilian real estate market. And with 20% growth predictions for the next five years, the carnival continues for property in Brazil.

Many Brazilian property analysts believe that the recent spectacular growth in the number of new builds shows that Brazil is making up for lost time. After years of virtual stagnation, the market for real estate in Brazil has regained momentum with annual growth in the region of 20%.

Repeat Cycles in Brazilian Property

For some analysts, the pattern is a repeat of the one seen 30 years ago. In an interview with the Brazilian Mortgage Association (ABECIP), the CEO of Brookfield Incorporacoes Nicholas Reade compares the present scenario with 1980. According to Mr Reade, Brazil built 630,000 units in 1980, a figure that was only slightly higher in 2009 (650,000 units). Yet, Brazil’s population has grown by over 70 million since 1980.

This comparison leads Mr Reade to believe that there is plenty of room for growth in the Brazilian real estate market. He predicts 20% annual growth over the next three to five years, a view that is shared by many others in the industry.

Long-term Future

All housing markets follow cycles and Obelisk International market research points to a steady upward trend for Brazilian real estate over the next few years. The number of new households in Brazil (currently around 1.5 million a year) plus the shortage of housing support this view.

For Thomas White, the long-term outlook for Brazilian property seems “set in concrete”. In the article ‘Brazil Housing Sector: No sign of the carnival ending’, Thomas White emphasises that “scarcity, not abundance, is the driving force” in the property market in Brazil.

Short-term Future

The recent boom in the real estate market has led many analysts to pose the question of a bubble. The question is particularly poignant in the context of a worldwide crisis with several countries such as the US, Ireland and Spain deep in property recession.

Thomas White looks at both sides of the argument. The small size of the Brazilian mortgage industry (between 4% and 5% of GDP) is a compelling argument against a bubble scenario. Mr Reade agrees with this highlighting the low level of loan-to-value (LTV) on mortgages in Brazil. Brazilian property buyers have to pay at least 25% of price upfront, removing much of the risk mortgage excesses.

On the other hand, as Thomas White points out, the current low level of housing credit to GDP could lead to mortgage excesses. Many experts believe, however, that Brazil can comfortably afford considerably more growth in its mortgage market to around 11% of its GDP without disruption to growth in real estate.

Brazil, on balance, presents a unique market for property with excellent long-term prospects. For Obelisk International CEO Gary Hardacre, one of the strongest sectors is social housing in the Minha Casa Minha Vida programme. “This niche market represents one of the most solid investment prospects with its ready-made market among low-income families and 100% government finance,” he said.

About Obelisk International: Obelisk International offers select investment opportunities in Brazil in a range of sectors such as residential real estate, construction and social housing. Obelisk 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 Brazilian investments and to find out about Obelisk International’s latest opportunities for investment in Brazil, contact us on 0034 952 820 319. Via email: or visit our website: Follow us on Twitter – Obelisk International and Facebook.

Obelisk International
Apdo de Correos 977
29601 Marbella, Spain
Tel: +34 952 820 319

This release was published on openPR.

Permanent link to this press release:

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 Carnival Time for Brazilian Real Estate by Obelisk International News here

News-ID: 190510 • Views: 1728

More Releases from Obelisk International

Brazilian Real Estate Soars Globally
Obelisk International News, Marbella, Spain, January 24 2012. On the back of strong economic growth and big demand drivers, Brazilian real estate ranks among global leaders for foreign investors. Brazilian property is placed as top emerging market for investment and second for capital appreciation. The 20th annual survey from the Association of Foreign Investors in Real Estate (AFIRE) finds that “globally, Brazil soars”. For survey respondents, investment in Brazilian real estate
The Power of Brazilian Investment
Obelisk International News, Marbella, January 17 2012. 2012 gets off to a flying start for investments in Brazil. The news that Brazil now ranks as the world’s sixth largest economy confirms the potential for Brazilian investment opportunities. Strong economic growth over the last two years has pushed Brazil up global rankings during 2010 and 2011. This coupled with a poor performance in many European countries means Brazil has overtaken the UK
Investors Descend on Brazilian Investment Opportunities
Obelisk International News, Marbella, Spain, November 14, 2011. Brazil has become a magnet for foreign investors in search of opportunities for investment. And the good news is that with its buoyant economy and booming consumer spending, Brazilian investments are here to stay. In their latest report on Brazil, Ernst & Young take a look at Brazil’s economy, politics and demographics. Based on these factors, ‘Viewpoint, Brazil in Focus’ predicts that the
Brazilian Investment Beats Crisis
Obelisk International News, Marbella, Spain, October 24 2011. With most of Europe in financial and economic straits, Brazil beckons as the place for investment opportunities. The country is well set to weather the global crisis and may even benefit from it, a huge plus for Brazilian investments. Based on Moody’s latest comments on the Brazilian economy, the Financial Times (FT) blog beyondbrics claims Brazil is the best place to beat the

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: 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