Good morning! This week, we discuss the outlook for Brazil’s real estate industry. The latest Vale imbroglio. And Brazil’s inflation Rorschach test.
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Real estate industry bullish on 2024
Abecip, the association of Brazilian real estate credit companies, believes that this year’s volume of credit for real estate purchases will be the highest in history, at BRL 259 billion (USD 52.6 billion).
By the numbers. This would represent a 3 percent increase over last year, when Brazil saw the second-highest volume of real estate lending, despite a scenario of high debt levels and high borrowing costs.
- The increase in real estate loans was driven by operations using money from the FGTS mandatory severance fund, from which workers can withdraw money in very specific situations, such as for the purchase of real estate.
- However, operations using money from savings declined in the last two years, as Brazilians are using up their savings to pay for everyday expenses (following the pandemic-led recession and the inflationary crisis of 2021-2022). In 2023, net withdrawals from...