Transcript my home, my life program

National and international
representative of firms
active in the Construction
Industry and Real Estate
Market
UNIONS, ASSOCIATIONS,
AND CHAMBERS
62
entities
/ 26 states and the FD
GENERAL INFORMATION
BRAZIL
POPULATION DISTRIBUTION
LOCALITY
RURAL
URBAN
TOTAL
Source: IBGE, 2010 Census.
No. of PERSONS
29,852,986
160,876,708
190,732,694
PARTICIPATION
15.65%
84.35%
100.00%
GDP GROWTH RATES
In the period 2011-2014, the consolidation of investments (driven by
construction) and increased domestic demand is expected to spur
average annual economic growth of 4,7%.
Source: Brazilian Institute of Geography and Statistics (IBGE). Preparation and estimates by the Ministry of Finance.
GROWTH WITH POVERTY REDUCTION
POPULATION IN POVERTY (% OF POPULATION)
Sustainable growth associated to inclusive policies will enable a
70% reduction in poverty in the period 2003-2014
Source: FGV. Preparation and estimated by the Ministry of Finance
ASCENSION OF THE MIDDLE CLASS
COMPOSITION OF THE BRAZILIAN SOCIAL CLASS (MILLIONS)
From 2002-2009 (7 years), a total of 25.7 million people were
incorporated to the middle class (C) (in 2011, Socioeconomic Class
C represented 55% of the population).
Note: Monthly household per capita income by class at 2009 prices: Class A/B: more than R$ 4,800.00;
Socioeconomic Class C: R$ 1,115.00 – R$ 4,800.00; Class D: R$ 804.00 – R$ 1,115.00; Class E: up to R$
804.00.
Source: Getúlio Vargas Foundation/National Household Sample Survey. Prepared by the Ministry of
Finance
FORMAL JOB CREATION GROWTH
IN BRAZIL
Source: CAGED, Ministry of Labor and Employment. Prepared by the Ministry of Finance
*12-month cumulative through January
MARKET EXPANSION
DEMOGRAPHIC BONUS (expansion of economically active population)
From 1995-2040, Brazil the number of economically active
individuals will exceed the number of dependents (larger supply of
labor and new consumers
Source: IBGE.
REAL ESTATE MARKET
KEY SOURCES OF RESOURCES
SBPE – Brazilian Savings and Loan System
US$ 223.33 billion (February 2012)
FGTS - Government Severance Indemnity Fund
US$ 136.21 billion (March 2012)
Source: Brazilian Central Bank (BACEN) and Federal Savings Bank (CEF) – FGTS Channel.
CBIC Database.
GROWTH IN REAL ESTATE
CREDIT 2002 – 2011 (financing volume)28
The first quarter of 2012 registered a 10% increase in financing
volume against the same period of the previous year
Note: New and used units
Source: Brazilian Central Bank (BACEN), Brazilian Association of Real Estate Credit and Savings (ABECIP), and Federal Savings
Bank (CEF) – FGTS Channel. CBIC Database.
CREDIT TRANSACTIONS FOR
INDIVIDUALS
CREDIT TRANSACTIONS FOR INDIVIDUALS (R$ BILLION)
Real-estate credit has grown faster than other forms of individual
credit
Fonte: Central Bank of Brazil, Produced by: Ministry of Finance
HIGH QUALITY REAL ESTATE CREDIT
Brazilian Savings and Loan System (SBPE) – Agreements with more than 3
outstanding installments signed after 1998
Mortgage Guaranty + Fiduciary Lien
Fiduciary Lien
Source: Brazilian Central Bank and Brazilian Association of Real Estate Credit and Savings (ABECIP)
REAL ESTATE FINANCING AS A
PERCENTAGE OF GDP
Source: Brazilian Central Bank (BACEN) and Brazilian Association of Real Estate Credit and Savings (ABECIP).
Preparation: CBIC Database
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WHY HAS THIS
DEVELOPMENT TAKEN
PLACE
BRAZILIAN ECONOMY: FORECAST
* IMF Forecast
Source: Brazilian Institute of Geography and Statistics (IBGE). Preparation and estimates by the Ministry of Finance.
LAW No. 10931/2004
 Greater legal security;
 Significant resource allocation;
 Streamlined procedures;
 Decision to serve as lever of growth;
 Financial segment discovers
real-estate credit.
LAW No. 10931/2004
Increased
funding
for real estate
Reduced
market
interest
rates
Increased
demand for
real estate
VIRTUOUS CYCLE FOR
REAL ESTATE MARKET
Lower
Increased
Employment
levels
costs
MY HOME, MY LIFE PROGRAM
 Lowers interest rates;
 Extends payment terms;
 Reduces taxes;
 Provides resources for subsidies;
 Streamlines procedures;
 Increases purchasing power of low-income
households.
MY HOME, MY LIFE PROGRAM
 SEGMENT 1
 Household incomes up to US$ 842.10
 Almost fully subsidized.
 SEGEMENT 2
 Household incomes from US$ 842.10 - US$ 1,631.58
 Reduced fees and costs;
 Lower interest.
 SEGMENT 3
 Household incomes from US$ 1,631.58 - US$ 2,631.58
 Reduced fees and costs;
 Lower interest.
Source: My Home, My Life Program. US$ = R$ 0.526
BUSINESS
OPPORTUNITIES
 Investments in publicly traded
companies;
 Production of enterprises;
 New technologies.
OTHERS BUSINESS
OPPORTUNITIES
SHOPPING CENTERS
Total Number of Shopping Centers
Malls scheduled for inauguration in 2012
Earnings in R$ billion (2011)
Sales as a percentage of total retail sales
434
38
108
18%
Source: ABRASCE
Photograph of the Pátio Brasil
Shopping Center – Federal District
TOURISM
TOURISTS TO BRAZIL
State
Brazil
Amazonas
Bahia
Ceará
Federal District
Mato Grosso do Sul
Minas Gerais
Pará
Paraná
Pernambuco
Rio de Janeiro
Rio Grande do Norte
Rio Grande do Sul
Santa Catarina
São Paulo
Other States
Source: Brazilian Federal Police Department and Ministry of Tourism
2010
5.161.379
26.423
165.966
95.786
37.911
68.140
56.230
19.458
725.077
85.336
982.538
46.578
653.622
128.421
2.016.267
53.626
2011
5.433.354
24.764
166.278
97.553
63.384
39.100
52.134
15.930
750.008
79.835
1.044.931
44.235
724.879
179.303
2.094.854
56.166
BUSINESS
OPPORTUNITIES
 Commercial projects
 Built to Suit;
RECOMMENDATIONS
 Local partnership;
 Choose your business well;
 Analyze opportunities throughout Brazil;
 Understand technical and legal standards and
regulations.
HOW CAN CBIC HELP ?
Institutionally
 At Government level
Executive
Legislative
 Civil Society at large
NGOs and Social Movements;
Employers and Business Organizations
Unions (workers’)
 CBIC has associates across the
country and participates in all
construction activities, where it may
offer institutional support to
investors
BRAZILIAN CONSTRUCTION
INDUSTRY CHAMBER
www.cbic.org.br
[email protected]
Phone: +55(61) 3327-1013
Fax: +55(61) 3327-1393