Success of Brazilian property boosting construction industry
The Minha Casa, Minha Vida Brazilian housing project is giving a huge boost to Brazilian construction firms.
It was introduced to provide homes to 400,000 lower-income families and another 600,000 properties for the middle classes, and is succeeding as an excellent economic stimulus measure for the South American country, LatinTrade.com reported.
"They [construction firms] adjusted the number of projects in order to reduce some working capital requirements and adjusted the number of new units to the demand they had at that time,” said Victor Saulytis, an S&P analyst in Sao Paulo.
He added that they also learned how to manage these working capital needs and to follow closely their corporate debt to roll over maturing obligations.
The news source also stated that if the country can resist the "speculative euphoria" which wreaked havoc in the US and Spain, then Brazilian property could become "another milestone in the evolution of the national economy".
Recently, Obelisk International stated that the Minha Casa, Minha Vida project should be hailed as a success for boosting the housing market in Brazil.
Posted by Helen Nash
