Brazilian Housing Explosion Continues
The Brazilian Governments hugely successful Minha Casa, Minha Vida scheme which was launched 12 weeks ago with the intent to provide affordable housing for the rapidly expanding middle class in Brazil has seen record numbers signing up to the scheme.
The State Company of Popular Dwellings (CEHAP), which is leading the development of the affordable housing boom in Brazil, has had 125,811 families register so far. Other Brazilian companies and international developers are also joining this booming market.
There are currently in excess of 21,000 new homes planned and approved in Brazils North Eastern state of Paraiba states the Brazilian Institute of Geography and Statistics. This has led to great interest from private developers interested in the affordable housing arena as a report from the Ministry of Cities in 2008 states that Paraba needs at least 122,000 new homes.
With constructors clamoring for land the State Government of Paraiba has announced a raft of proposals to make obtaining planning permission more straightforward and speed up the development process.
This programme has poured R$60bn into Brazil’s housing market and given that the construction industry accounts for 5 per cent of Brazils gross domestic product this programme is giving a valuable boost to employment and earnings.
The Brazilian Government announced that it would plow another R$10 Billion into its flagship affordable housing scheme, Minha Casa, Minha Vida in 2010. The scheme was introduced as a result of the worldwide economic crisis to boost construction and reduce the country’s housing shortage which is estimated to be in excess of 7 million units.
Public funds will be used to subsidize their home purchase, keeping monthly mortgage payments below 10% of the buyers income, with mortgage payments guaranteed by a Treasury fund.
Brazilian Finance Minister, Guido Mantega says that Minha Casa, Minha Vida is the one of the Governments core anti-crisis schemes and will have a huge impact on the Brazilian economy.
The Brazilian economy has gone from strength to strength in recent years and is widely expected to be one of the worlds largest by 2050.
Leslie Richards is a investment consultant to Brazil land Invest and wrote this article on the Affordable Housing sector in Brazil and recommends you visit Brazil Land Invest for more information information about investing in this exciting investment sector.