Three months after the launch of the Minha Casa, Minha Vida programme, the government-backed project to bring affordable housing to the burgeoning Brazilian middle classes, the numbers of individuals signing up to the scheme are soaring.
125,811 families have registered so far with the State Company of Popular Dwellings (Cehap) who are leading the development boom and private developers, both Brazilian and International, are falling over themselves to join the bandwagon.
In Paraiba, North East Brazil, 21,306 new homes are already planned for families earning between zero and 10 times the minimum wage, according to the Brazilian Institute of Geography and Statistics. Yet according to an inquiry carried out by the Ministry of Cities in 2008, Paraibas housing discrepancy stands at 122.166 units, a fact which has not escaped the notice of the private development sector.
The State Government is supporting the re-zoning of land in the area for the development of popular housing and has announced a number of proposals to assist constructors who are focusing on the sector.
Brazil’s construction industry was heading into decline after several years of strong growth and this scheme has reinvigorated the construction industry, which accounts for 5 per cent of Brazils gross domestic product.
The Minha Casa, Minha Vida scheme will receive another 10 Billion Reais in 2010. Brazil has a housing shortage estimated at 8 miilion units and this scheme was bought in by the Government to provide affordable housing and to stimulate the construction industry downturn caused by the worldwide economic crisis.
With the massive provision of public funds by the Government, up to 90% in some cases, buyers mortgage payments are less than 10% of their income with mortgage payments guaranteed by the Government.
“It is a brave programme and one with a great impact on the Brazilian economy, and it will certainly be one of this government’s main anti-crisis programmes,” said Brazilian Finance Minister, Guido Mantega.
The Brazilian economy has gone from strength to strength in recent years and is widely expected to be one of the worlds largest by 2050.
Leslie Richards is a development land consultant to Brazil land Invest and wrote this article on the Affordable Housing sector in Brazil and invites you visit Brazil Land Invest for more information information about investing in this exciting investment sector.
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
Tags: affordable housing, brazil, Finance, investment, minha vida, Mortgage, mortgages, Paraiba, property development, Real Estate, travel