Brazil Housing Demand
BRAZILBrazil Guide
Brazil Property
Investment Property Brazil
MOROCCOMorocco Guide
Morocco Property
Investment Property Morocco
EGYPTEgypt Guide
Egypt Property
Investment Property Egypt
ITALYItaly Guide
Italy Property
Investment Property Italy
TURKEYTurkey Guide
Turkey Property
Investment Property Turkey
MALAYSIAMalaysia Guide
Malaysia Property
Investment Property Malaysia
International Property Investment
Why Invest in International Property
Property Investment Strategies
SIPPS
REITS
SSIA
International Property World
Why Choose IPW
IPW Due Diligence
Client Testimonials
Brazil Housing Demand
Cyrela Net Rises 85% as Lower Rates Feed Brazil Housing Demand - August 15 2007 - BloombergAug. 15 (Bloomberg) -- Cyrela Brazil Realty SA Empreendimentos e Participacoes, Brazil's largest real estate company, said first-half profit rose 85 percent as record low interest rates encouraged homebuyers.
Net income rose to 240.8 million reais ($121 million) in the six months ended June 30, from 130.4 million reais a year earlier, the Sao Paulo-based company said today in a statement posted on the Web site of Brazil's securities regulator.
Cheap credit coupled with the availability of fixed-rate, longer-term loans are encouraging Brazilians to borrow money to buy property, boosting demand for homes. Brazil's monetary policy makers have slashed benchmark lending rates 17 times in less than two years to a record 11.5 percent.
``All the signs lead us to believe that this growth in the real estate market will persist in coming years,' said Rodrigo Magela, who helps manage 4.6 billion reais in assets at Rio de Janeiro-based ARX Capital Management. ``The availability of longer-term credit with lower interest rates is stimulating home purchases by people with lower income, where the real housing deficit is concentrated.'
Banks such as Banco Bradesco SA, the country's second- largest non-government bank, have increased the term of their mortgages to 25 years from 20 years and started offering loans at fixed interest rates rather than floating rates, giving home buyers more confidence.
Some 8 million Brazilian families would buy homes if credit conditions fit their earnings, said Antonio P. Barbosa, mortgage director for Banco ABN Amro Real SA, a unit of Amsterdam-based ABN Amro Holding NV. Each decline of a half percentage point in mortgage rates attracts about 3 million consumers to the home credit market, he said.
Cyrela's profit probably will rise 37 percent this year, Magela said.
Mall Unit Sold
Cyrela has spun off a unit that is dedicated to commercial and mall projects and created a new company that started trading on Aug. 9.
Four out of 12 analysts who cover Cyrela have a ``buy' recommendation on the stock, while eight have a ``hold' rating, according to data compiled by Bloomberg.
Cyrela gained 25 percent on the Sao Paulo stock exchange in the second quarter, beating the 19 percent increase in the benchmark Bovespa index and the 16 percent advance for rival Gafisa SA.
Gafisa, Brazil's second-largest real estate company, on Aug. 6 said second-quarter profit rose 67 percent to 32.14 million reais.
To contact the reporter on this story: Telma Marotto in Sao Paulo at at Tmarotto1@bloomberg.net .
Related Articles
General Electric Company want Brazilian Real Estate
Reasons for investors to celebrate Brazil's Independence Day
Brazilian Property Market Booming
Brazil Real Estate: Bullish Outlook
Up and coming Brazil
Invest in Brazil … are you nuts?
Restrictions for Foreigners When Buying Rural Properties
8 Reasons to Invest in Brazil's Real Estate
Brookfield Creates $700 Million Brazil Property Fund
| FREEPHONE US TODAY |
INTERNATIONAL Freephone Number 0800 011 2352 |
| Investment Guide Brazil |
| Download your FREE BROCHURE NOW |