Real Estate News, Reviews and Investment
News: offering concessions and building funds in Brazil.
The two-pronged initiative is part of a comprehensive plan to speed up construction work in Brazil. Developers have, in the past, been overly dependent on funds from BNDES, the state development bank, which has slowed building progress.
The initiatives are also designed to boost long-term investment in the country’s already vibrant real-estate market.
Concessions for attracting foreign investors
Being well aware of constraints on the availability of funds to builders, the BraZilian government saw the wisdom of inviting foreign investors to provide much needed capital. For this purpose, it decided to offer an exemption on transactions between investors and the beneficiaries of local funds who supplied developers with working capital. There are optimistic grounds for making such an overture.
Favorable public impressions of the country
BraZil has always enjoyed a favorable economic rating both from a local as well as from an overseas perspective:
Real estate development environment
Despite some drawbacks occasioned by poor growth management and abnormally high construction costs, the market has now made headway in various sectors
Favorable conditions that promote growth.
Capital is definitely available for developers for carrying out construction projects but it appears government is not prepared to accept that the amount available will cope with long term demand for more floor space. The existing favorable conditions include: