A recent conference looked at the impact of coronavirus on the construction sector and its knock-on effect for real estate in the country. The participating experts suggested key areas that Brazil needs to focus on and came to the conclusion that the outlook for Brazil property is positive.
The economist Luis Nogueira led the conference , held online due to Covid-19 restrictions. Analysts in the real estate sector and construction industry joined him with their input on different aspects of the economy and its future.
Less impact on Brazil property
The real estate sector featured as one of the main areas at the conference. Nogueira reported that he expects the current crisis to have much less impact on Brazilian real estate than other sectors. He pointed out that construction has not come to a halt in many parts of the country despite lockdown and that building work on new launches in these areas continues.
He also emphasised that the property sector has recently gone through a stage of clear recovery. This has been particularly pronounced in residential construction and the sector saw several major launches in 2019. These have, in turn, stimulated launches this year.
The recent reduction in mortgage interest rate plus new products for home loans in Brazil will also work in the property sector’s favour post Covid-19. “Lower interest rates could be beneficial for property buyers as well as the expectation that the government will relaunch the Minha Casa Minha Vida housing programme,” he said.
Business as usual in Ceará
In some parts of Northeast Brazil, civil construction continues as normal. This is the case at The Coral on the Guajirú beach, just north of Fortaleza in the state of Ceará. Building work is following its schedule on the various construction projects on the site. These include private villas and the loft apartments.
At the conference, Nogueira stated that one of the ways out of the crisis for Brazil is via infrastructure. The government already has a package of post-crisis measures designed specifically for this sector. They include 70 projects for transport such as highways, airports, railways and ports with a total spending of R$30 billion.
These stimulus packages come in addition to tenders already approved for the second half of this year. These encompass some 44 projects with a budget of R$101 billion. Between them, the infrastructure investments will help boost the economy and drive employment in key areas of Brazil.
Gradual easing of lockdown
The conference also examined the post-lockdown scenario and Nogueira presented four progressions. The first is for social confinement to continue until the end of April. During May, more and more states will join Santa Catarina, a state that has already started resuming activity, albeit slowly.
The third stage includes a return to school in June so that Brazilian students don’t miss out on this year’s schooling. The fourth and final stage will take place during August. The authorities expect activities to return to their normal levels during this month.