Government measures designed to stimulate the construction industry and provide more housing stock for low to middle income Brazilians has helped the Brazilian property market undergo a revival.
The government incentive scheme known as Minha casa, Minha Vida (My home, My life) means that buyers earning upto 3 times the national minimum wage can apply for subsidies that will cover the majority of the cost of a purchase upto R$52,000 with the state bank lending the rest.
Reduction on real estate sales tax and a simplified development licensing procedure are aimed at the developers.
Felipe Cavalcante, of ADIT Nordeste states “The Government has made history with this stimulus package, It’s not just social housing that’s doing well but the whole market. Investors are starting to buy again and the stock exchange is doing well”