Humble homes withstand 'perfect storm' in Brazil real estate

lunes 10 de agosto de 2015 11:52 GYT
 

* Brazil consumer confidence at all-time low

* Housing market down sharply vs. euphoria of 2011

* Mid- and high-end builders suffering most

* Repressed demand, subsidies buoy low-income builders

* Potential funding changes may threaten future growth

By Asher Levine

SAO PAULO, Aug 10 (Reuters) - Brazil's once red-hot housing market has turned cold quickly, forcing many developers to slam the brakes on new construction, though one corner of the industry is so far riding out the nation's worsening economic slump.

The Brazilian real estate market is witnessing a drastic reversal from four years ago, when an economic boom lifted millions into an expanded middle class and fueled a home-buying frenzy that pushed prices up by as much as 30 percent on an annual basis.

At the time, developers like Cyrela Brazil Realty SA and Rossi Residencial SA, flush with cash from recent initial public offerings, launched into a building binge of middle- and high-income housing to meet what they expected would be continuously growing demand.   Continuación...