Brazil Property Market Happy With Election Result
News Posted On: 11 November 2010
The newly elected Brazilian President Dilma Rousseff is expected to continue the reforms that have been boosting the Brazilian property market, and maybe even expand on them according to experts in the market.
'With the election of Rousseff, the Brazilian property market has at least another ten years of growth. The Workers Party government was the best thing that could have happened in the history of construction in the country since it was the only ruling party that has created real incentives for the industry,' said Flavio Cabrera of Lopes Real Estate Consultants, in Porto Alegre and Rio Grande do Sul.
The Brazilian economy is known to be one of the fastest growing economies in the world, largely thanks to excellent economic management by the former President Luiz Inácio Lula da Silva.
Da Silva is responsible for reform packages like Minha Casa, Minha Vida (my house my life), which offers tax incentives to help low income families get onto the property ladder, and Bolsa Familiar, an anti-poverty programme.
Between the two they have helped pull 20 million Brazilians out of poverty and shifted another 29 million into a rapidly growing middle class. The other benefit of the programs has of course been to generate significant demand for affordable housing in Brazil, and massive growth in the mortgage market.
Investments in affordable housing projects in emerging markets have always been known to be highly lucrative, but until recently the only access to such investments was indirect access through investment funds and such like. But this year developments have begun to spring up allowing foreigners to buy properties in affordable projects, to rent out or resell to the burgeoning Brazilian middle class.
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