Brazilian Real Estate Companies and the Quiet Revolution in Brazil’s Real Estate Market

The past decade has seen a quiet revolution in Brazilian real estate. In the midst of strong economic growth, foreign investors began to look at South American and especially Brazilian real estate markets as a safer bet than in the past. Brazilians who would have previously been more likely to buy a home abroad started to consider purchasing in Brazil as a more viable option. Brazil’s economic growth has led to the expansion of the market, both in Rio and Sao Paulo, as well as in smaller real estate markets.

Spurred on by growing consumer demand and increased foreign confidence, this recent growth has extended into commercial developments, especially shopping malls, and residential real estate. Headquartered in Rio’s Tijuca neighborhood, Cabral Garcia Empreendimentos, found here on Twitter, is one of the leading real estate developers in Brazil, having just completed an 11,322 sq.m. luxury community on the west side of Rio de Janeiro, its first residential project in three years.

Cabral Garcia Empreendimento’s new project is the first new residential development to in the west side in several years, with the addition of a new subway station making the area a more attractive commuting option, and they’ve commented on what that’s accomplished so far. Their recent luxury aparthotel project in Lapa, a gentrifying neighborhood in Rio famous for culture and nightlife, recently sold out as well.  A more detailed description of their development history can be found on LinkedIn.

Despite economic struggles in the country overall, the real estate sector benefits from some specific advantages. Mortgage debt in Brazil is low and the growing Brazilian middle class views property ownership as a hedge against inflation. Growth may be slowing, but Brazilian real estate companies such as BHG continue to thrive on the growth of the middle class in 2nd and 3rd-tier Brazilian cities, which have grown rapidly on the heels of economic expansion, a trend which is bound to continue as the economy recovers.

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