Urban Market
Since the majority of its population living in urban areas, the number of homes and commercial buildings is below the demand in Brazil. Over the last years, the Government deregulated credit, thereby facilitating the recovery and retaking of property for creditors, reducing the risks and exposing the market to competition with financial institutions which, for the first time, fight over the their clients because of the enormous credit offer liberated.
Here are the main measures behind the increase of all economic indicators related to the sector:
Thanks to those measures, Brazilian construction companies have set off to operate on the stock exchange (BOVESPA) and have accounted for successful cases of capital opening and funding, thereby breaking with the long tradition of closed companies and family concerns in the sector.
This is when the market of civil construction became professionalized. Companies are now obliged by law to follow the new standards of Governance and transparency; and so, they abide to strict standards when releasing their balances, electing their board of directors and undergoing the inspections of external and independent audit companies.
We therefore now have a solid set of characteristics to rank Brazil among one of the most attractive real estate markets these days.
If we compare the credit history of Brazil with the GOP of other developed and developing countries, there is sufficient space to see its current 5% grow to reach the level of 20%.
Rural Market
With the recent intention of developed countries to start using the so-called ‘green’ fuel, biodiesel and ethanol, and mix them with oil byproducts, the attention on the international scene has turned to Brazil and its vocation for the development and refining of these fuels.
Brazil has already consolidated its farming markets with its production of soy, Pinus Eucaliptus, corn, coffee, sugar cane, and oranges; moreover, its tropical and sub-tropical climate allows for the use of its soil all round the year and for a greater return on the investment made in its plantations.
All regions of the country still have much land left for cultivation. Moreover, the Government and private companies are now investing in the transport system to reduce the costs and time spent in transit.
Brazil has 12% of the drinkable water reserves of the Planet; this unique resource added to the climate allows for a highly competitive and low-cost agriculture.
Cattle breeding for meat cuts, the so-called ‘green’ meat has already turned Brazil into the main meat product exporter in the world. Brazilian cattle is fed on grassland and given plant-based rations, and so the meat product is free of any contaminations such as mad cow disease or what is scientifically known as BSE (Bovine Spongiform Encephalopathy).
Legal requirements oblige the landowners to keep permanent areas of preservation or a minimum of legal reserves, a matter of concern and constant watch for the NGOs and Public Inspection Authorities. The landowners are made to abide to the law if these areas are not outlined or do not exist. The regularizing processes of the green areas are made mandatory when obtaining loans or simply registering transfers.
Rural estates above 500 hectares (5,000,000 m2) are to outline their area through the GPS georeference system.
Agricultural shows in the Interior if Brazil have seen a substantial increase in the sale of machines and farming staples, which shows the excellent period through which the sector is going.