Sao Paulo housing market will be stronger in second half
August 15, 2012
Historically, real estate in São Paulo sees its strongest performance rate in the second half of each year. So it was in 2010 and 2011, with respectively 64% and 63% of the entries made in the last six months of each year. All indications are that this trend will be even stronger in 2012 according to Emilio Kallas, vice president of Secovi-SP
(pictured). "We believe that at least 70% of releases in 2012 will be performed during this period."
According to the Kallas, this behavior is justified. "The market takes the first half to study absorption of offers launched and trends in the economic scenario, among other things. In addition, there are also seasonal events, a holiday, Carnival, etc."
According to the SP-Secovi, launches this year should total 30,000 units. "It is a volume 20% lower than in 2011, which confirms market adjustments resulting from the lack of land for the realization of new projects, legislative restrictions, and the delay in the process approvals."
For this last issue, the prospects are brightening. The São Paulo Municipal Housing Secretariat (SEHAB) is working to centralize and computerize the process which will ensure the desired agility and necessary transparency for approvals.