The housing deficit is record in the country – Economy

The reduction of credit for the financing of real estate, the rise in unemployment since the crisis years and the fall in family income have made the dream of home ownership for thousands of Brazilians even more remote. The country's housing deficit, which was already high, increased by more than 220,000 properties between 2015 and 2017, reaching a record high.

A survey conducted by the Brazilian Association of Real Estate Developers (Abrainc) in partnership with the Getulio Vargas Foundation (FGV) shows that the housing deficit has increased by 7% in just ten years, from 2007 to 2017, to reach 7.78 million homes by 2017.

"We have reached the record of the historic series of housing shortages.Today, this is mainly due to the lack of housing – Families who share the same house, live in slums and shantytowns – and because of the excessive weight that rent has had on families' budgets in recent years, "said FGV's Robson Gonçalves. .

He explains that the deficit is made up mostly of families earning up to three minimum wages per month, but that the demand for housing also affects middle-income consumers, who have seen the job market become unstable. past years and credit. immovable.

"Families want to have their own home, but the uncertainties of recent years have made this more distant," says Gonçalves. "The Brazilian who did not lose his job was afraid of being unemployed and postponed the purchase of the house, and many of those who remained unemployed had to stop funding at mid-term. "

Last year, even as the economy began to recover, still high unemployment and lack of consumer confidence made the granting of In September and September, mortgage credit granted accounted for half of the resources lent to individuals in 2014.

New cycle

Despite still tentative results, builders and developers expect after the elections, the labor market is on the road to recovery this year, and the search for real estate will pick up again.The FGV / Abrainc survey also indicates that in order to meet the demand for housing in the country over the next ten to it would be necessary to build 1.2 million homes per year.

"This is an opportunity for the market, and few countries in the world have such an expressive demand," says Alexander Frankel, president of Vitacon. "We are seeing a new cycle forming in the sector and, if all goes well in the economy, the next two years may well be quieter on the real estate market."

"We must look with optimism for the market, which is healthy and in high demand, not only for low-income consumers, but there is also great demand among those who rely on savings sources," said President of the MRV, Eduardo Fischer, points out that basic interest rates are at a low of 6.5% a year, which eases the use of real estate finance.

The company also hopes to launch more projects this year than in 2018 and take advantage of the growing demand for resale of higher clbad properties, paying particular attention to middle-clbad families who have delayed the purchase of their homes during recession.

Lucas Araújo , Superintendent of Trisul, estimates that the demand for housing in the city of São Paulo alone is increasing by 25,000 units a year, and explains that the difficulties faced by the sector in overcoming this deficit are due to the difficulty of accepting credits and delay in approving projects in prefectures.

"We are talking about a market in which housing demand is increasing, and even during the crisis, low-income, public-oriented construction companies have been doing well, and the consumer who could not finance a property has not abandoned the purchase of their home, only postponed. "

Gonçalves, of FGV, however warns that the new government has not yet specified s & # 39; he intended to reuse the important FGTS resources to finance the real estate sector and the future of the My Home, My Life program.

"2019 should be a better year for real estate market"

The reduction of uncertainties after the elections should create a new cycle for the real estate market, said MRV President Eduardo Fischer. The construction company, which has focused on the low-income consumer over the last five years, plans to revive higher value real estate. Here are excerpts from the interview.

In this sector, we must always try to anticipate the next three years. Even in 2014, when unemployment was low, it was already clear that the coming years would be difficult, but 2019 should be better for the real estate market. The worst of the crisis seems to have pbaded and the demand for housing is strong.