60 | BRAZIL WORDS | Amit Katwala
SNAPSHOT Greek land sale plans may fold to public opinion 5th April 2011
Greek government plans to raise billions of euros from the sale of state-owned land may fail if the authorities there cave in to public pressure to keep these assets in public ownership.
Wealthy buyers ‘still believe in Greece’ 30th March 2011 Greek prices will crash again say local agents 30th July 2010
Buyers “still believe in Greece as an international destination”, according to Katerina Katopis, a director at Dolphin Capital Partners, which is building a luxury resort development in the country.
Greece’s continuing sovereign debt crisis is impacting on the property market by forcing up real estate taxes and causing units to be marked down by as much as 50% All stories from
opp.org.uk
Is Brazil’s fairytale growth story backed up by the numbers? OPP fi nds out...
Key Cities in Brazil
www.opp.org.uk | JUNE 2011
B
razil is booming, if we are to believe the hype, and according to some it provides
an unrivalled investment opportunity. However, as OPP found out, there is an alarming lack of offi cial data on house prices, and although the forecast for economic growth looks good, it is not yet clear whether this will translate to the residential property sector. This week’s datafi le examines some of the information we were able to unearth…
Property Prices Two major sporting events have driven interest in Brazil’s property market in the last few years. The World Cup in 2014, and the Olympics in Rio in 2016 make the country attractive for many, and according to Global Property Guide: “In Q3 2009, the average price of new launches surged by 25% to BRL3,465 (US$1946) per sq. m. from a year earlier. The number of units launched also rose by 44% to 7,858 units from 5,462 a year ago, according to Cyrela Brazil Realty, Brazil’s largest property developer. The average price of sales increased by 13% while the number of units sold rose by 28%, within the same period.” The lack of offi cial government
data on house prices makes the current picture somewhat unclear, but the FIPE- ZAP index provides some clues as to the progression of property prices. The data for the whole country only
goes back to halfway through last year, but the trend seems to be for rising prices, according to the graphs. The FIPE-ZAP index also provides information about seven cities in the country. Prices in the southeastern city of Belo
Horizonte, the country’s third largest. rose 42.9% between April 2009 and April 2011. In the capital, Brasilia, prices rose
15.9% between August 2010 and April 2011. The northeastern tourist city of
Fortaleza saw a 13.1% increase in the FIPE-ZAP index between March 2010 and April 2011. Recife, also in the north, saw a 16.2% rise between June 2010 and April 2011. Prices in Rio de Janeiro have more
than doubled since January 2008, according to the index, posting a staggering 113.2% increase.
“Prices in Rio have more than doubled since January 2008, posting a staggering 113.2% increase”
Salvador, in the northeastern state
of Bahia, saw a more modest rise of just 5.4% between August 2010 and April 2011. The countries largest city, Sao Paulo,
also posted an impressive increase in property prices, of 91% between January 2008 and April 2011.
Tourist information Brazil still gets surprisingly few arrivals from international tourists, around 5 million a year, with the majority coming from elsewhere in the Americas. There is however a large domestic tourism market, with the north-east popular. This is set to change in the next decade, according to some, with the World Cup and Olympics advertising the country to potential visitors.
100% Source:
planiglobe.com Sao Paulo - price index 50%
0%
-50% Jan 2008
April 2008
July 2008
Oct 2008
Jan 2009
April 2009
July 2009
Oct 2009
Jan 2010 Source: FIPE-ZAP Rio de Janeiro - price index 150% 100% 50% 0% -50% Jan 2008
April 2008
July 2008
Oct 2008
Jan 2009
April 2009
July 2009
Oct 2009
Jan 2010 Source: FIPE-ZAP
April 2010
July 2010
Oct 2010
Jan 2011
April 2011
April 2010
July 2010
Oct 2010
Jan 2011
April 2011
Market Snapshot Brazil
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