Brazilian Property Boom Continues
Three months after the launch of the Minha Casa, Minha Vida programme, the government-backed project to bring affordable housing to the burgeoning Brazilian middle classes, the numbers of individuals signing up to the scheme are soaring.
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.
In Paraiba, North East Brazil, 21,306 new homes are already planned for families earning between zero and 10 times the minimum wage, according to the Brazilian Institute of Geography and Statistics. Yet according to an inquiry carried out by the Ministry of Cities in 2008, Paraibas housing discrepancy stands at 122.166 units, a fact which has not escaped the notice of the private development sector.
The State Government of Paraiba is well aware of the latent demand in the state and has pushed through a raft of proposals to allow quicker re-zoning of land to help developers.
Minha Casa, Minha Vida has provided an impressive R$60bn into Brazil’s housing market, and with the construction industry accounting for 5 per cent of Brazils GDP this will give a valuable boost to employment and earnings.
Affordable housing is a major focus for the Brazilian Government, which this week announced that following reallocation of funding, it will dedicate 10 Billion Reais to the Minha Casa, Minha Vida initiative in 2010. The progamme is designed to boost the construction sector to offset the effects of the global economic crisis and alleviate the country’s housing shortage which is reported to be as much as 8 million countrywide.
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 chief economist of Goldman Sachs has stated that Brazil could be one of the worlds largest economies by 2027
Leslie Richards is a 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 property development in this exciting sector in Paraiba, North East Brazil.