Property in Brazil 'showing growth'
Date added: 4th May, 2010 at 10:20
(view all articles from May, 2010)
Categories: Property News
Property in Brazil is maintaining its profitability despite hikes in the interest rate, Brazil's leading homebuilder Grafisa has said.
The firm released its first-quarter results yesterday (May 3rd), reporting an increase in net income reaching 64.8 million reais (£24.65 million) before expenses deductions in 2010, compared with 36.7 million reais in 2009.
Grafisa cited a favourable climate for the property market as a factor in its prosperity and it stated it expects this to continue through to the end of the year as the average salary continues to grow, interest rates stay relatively low and unemployment rates drop, inspiring consumer confidence.
The Brazilian government has also announced that the 'my house my life' (Minha Casa, Minha Vida) programme will be extended, doubling the resources dedicated to the scheme, with the aim of developing two million new homes in the next four years.
Although the interest rate in Brazil has recently been raised to prevent the economy overheating, Grafisa noted it is not concerned about any potential impact on the property sector.
In an interview with Reuters, Grafisa chief executive Wilson Amaral said: "The economy is doing extremely well at this moment so I am not worried about the interest rate increase ... for our business it is much better that the central bank acts pre-emptively to prevent inflation from gathering pace."
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