Shortfall of houses in Brazil
The booming housing industry in Brazil is resulting in an imbalance in the supply and demand chain, according to a new report.
Entitled The Construction Wood Industry in Bric Countries, the study claims that the South American country is currently experiencing a shortfall of seven million housing units.
Ready-to-build projects lead to quick returns
Investors in Brazilian property benefit from ready-to-build projects because of the advantage of "much shorter lead times" before they start earning money, according to Buy Association.
Paul Collins, editor of the property website explained that although off-plan projects are comparatively less expensive, the downside is that buyers have to wait for the project to be completed before they begin to see a return on their investment.
Brazil’s property market in ‘good shape’
Brazil's property market has been described as looking in very good shape by a property expert.
Paul Collins, editor at Buy Association, a property website that offers impartial overseas property advice, explained that the main reason for this was that the South American country has a successful economic base.
UK banks unwilling to lend to property investors
Brazilian property investors looking to expand their respective portfolios might find it difficult to secure finance in the UK as according to LettingFocus.com, banks are looking for excuses not to lend.
David Lawrenson, private rented sector expert at LettingFocus.com, explained that this is creating an environment in which property investors are struggling to get hold of mortgage finance, even if they have been in the game for a long time.
He said: "The banks and building societies are extremely intransigent and looking for any excuses not to lend– it is what we keep hearing."
Mr Lawrenson's comments come hot on the back of a new study from the Association of Residential Letting Agents (Arla) which found that although landlord buying and selling activity rose in the last year, that trend might not continue in 2012.
Brazil to focus on construction in 2012
The Brazilian government is to put the construction industry at the top of its agenda this year as it seeks to boost economic growth.
Housing development will be at the centre of this, with president Dilma Rousseff's administration doing all it can to ensure the second stage of a subsidised property program for low income families is a success.
‘Benchmark cut’ creates confidence
The Brazilian house building industry will benefit tremendously if the benchmark lending rate is slashed to below ten per cent.
MRV Engenharia & Participacoes, which is one of the biggest construction and real estate companies in the South American country, saw its stocks rise to a five-month high after news of this possible cut began to spread through the financial sector.
London’s commercial property feeling the effects of the eurozone malaise
London's commercial property market is experiencing a small crisis of confidence because of the impact of the eurozone, which might see investors go abroad to countries like Brazil where the real estate market is booming.
According to Andrew Burrell, head of forecasting at Jones Lang LaSalle, confidence has been "hit on the occupier side and also the investor side".
"Maybe it has been a little bit more obvious in London offices, because they are very much more outward-looking and very much more connected with what is going on in the globe," he explained.
"I think the big change has been on the prospects of the eurozone and the others are just things that are on in the background. [They are] on the margin – they make a difference, but they are not new news."
‘Fantastic’ property opportunities in Brazil
The prospects for those looking to invest in Brazilian property are fantastic, according to Housetech Developments.
Waseem Saddique, chief executive officer of the specialist construction company, explained that while other economies are being downgraded, Brazil is marching full steam ahead.
"The government has started pumping the US$ 78.1 billion (approximately £50.6 billion) that they pledged within the My House My Life scheme, further investment is being made in infrastructure," he said.
"A boost in tourism along with the attraction of illustrious sporting events such as the Fifa World Cup in 2014 and the Olympic Games set to be held in Rio de Janeiro in 2016 has seen the need for housing and development rise to staggering heights."
Mr Saddique added that with a number of oil rich areas discovered off the coast of Rio de Janeiro, Brazil was becoming a prime hotspot for real estate investment.
FIFA: Speed up World Cup bill
The Fédération Internationale de Football Association (FIFA) has urged Brazil to speed up approval of a bill regarding the 2014 Football World Cup.
Jerome Valckle, general secretary of FIFA, who was on a visit to the South American country, wants the government to push ahead with preparations for the huge sporting event by getting legislative consent as soon as possible, Reuters reported.
Better planning needed in Brazil
Building work in Brazil needs to have better planning, especially in the field of logistics, according to an expert.
Renato Pavan, an engineer and logistics expert, believes that with the South American country experiencing widespread mass construction of housing and other buildings, there needs to be improved organisation, Upside Down World reported.
