Honduras Real Estate

The real estate market in São Paulo, the economic hub of Brazil and South America’s largest city, is slowing as figures from local estate agents suggest the property market may have peaked.

As an emerging market, Brazil does not yet have reliable real estate indices but agents are beginning to put together reports that give buyers and investors a more reliable idea of what is happening.

Figures from the Regional Council of Realtors for the State of São Paulo (CRECI-SP) show that after a sharp escalation in prices in recent years, average prices fell by 3.53% in October last year compared with the previous month.

The data, based on the sales performance of 529 real estate agencies, also shows that there was a decrease of 25.6% in the number of properties sold over the same period.

Another set of figures for new build property from the SECOVI, the São Paulo State Housing organisation, also indicates that the market is slowing. Sales of new apartments fell to 23.5% in October from 26.4% in September.

Most experts are unsurprised with the statistics, seeing them as a predictable correction in a region that has seen rapid prices increases. According to EMBRAESP, the estate agent’s organisation in the area, the average value of one bedroom apartments in São Paulo more than doubled between 2008 and 2010 in comparison with the previous two years. While two, three, and four bedroom properties increased by between 40 and 65% in the same period.

According to João Crestana, president of São Paulo SECOVI, it is a sign that the market is returning to normal after a period of unsustainable that was boosted by a greater supply of housing credit and falling interest rates. ‘My perception is that prices are where they should be, with supply more adjusted to demand,’ he said in an interview.

The majority of international investors continue to remain bullish about Brazil and this is an entirely justified perspective for many reasons including rising incomes, lower unemployment, an Asian-driven commodity boom, and gigantic oil discoveries, according to Ruban Selvanayagam, of the Brazil Real Estate Investment and Land Guide.

Major sporting events such as the Olympic Games and FIFA football World Cup and a vigilant banking system are also boosting confidence, according to its new Brazil Real Estate and Land Investors 2011 report.

‘However, as with any inflationary market, business risks need to be taken into account. From a macro-economic perspective, examples include a highly valued currency that is continuing to lose international competiveness whilst weighing down the trade-weighted exchange rate and boosting consumer costs, a growing current account deficit, low comparative international savings levels, the ever rising need to improve infrastructure as well as low comparative innovatory and education levels,’ he explained.

‘For the real estate and land investor, despite possible issues related to over supply, rising mortgage finance costs and ownership, industry professionals within the country remain positive that, for at least the next few years, the housing market will remain buoyant,’ he added.

The industry needs to address a number of issues, he believes, most prominently the fact that real estate finance for foreigners is not available out with some development finance programmes being offered by developers. Other issues include excessive bureaucracy, title protection, exchange rate issues, obtaining a sufficiently valid investment visa and acquiring real estate related assets transparently in accordance with international legal standards.

‘Nevertheless, as these issues are unlikely to disappear any time soon, investors, including an increasing amount from other emerging nations such as China, India and South Korea,  have been striving to work through the complex system. We believe that it is a task that is well worth undertaking considering the wealth of opportunities available in a country with such strong medium to long term growth prospects,’ added Selvanayagam.

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Article source: http://www.propertywire.com/news/south-america/brazil-property-prices-slowing-201101104837.html

A US economic slowdown will not hurt Latin America as much as it would have just a decade ago, though some of the benefit of the region is waning.

Stronger industries as well as financial help from other markets mainly benefit this. The Latin American countries have seen great growth over the last ten years. In fact, many of the very new economies and markets here just ten years ago are not stable and considered good investment areas. During that time, Latin America has managed to move away from being dependent on the US and US economies.

While Latin America has regularly seen growth, there are some areas which it may begin a decline. Stock markets, for example, have struggled with loss this year thus far.

The question is, with a shaky economy will Latin America weather the US recession worries?

Some areas may be hurt, such as those linked to consumer activity within the US. Other sectors will continue to grow. The largest growth areas are still going to be construction as well as the booming service industry here.

Latin America saw an overall growth of 5 per cent in 2007. This is mostly due to the production of more or new commodities including oil and soybeans. Prices on these particular goods have increased drastically.

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Article source: http://www.propertywire.com/news/south-america/latin-america-not-dependent-on-us-economy-20080129270.html

Costa Rica and Aruba are excellent tourism locations in Latin America, and the governments are actively starting ad campaigns to boost the numbers.

In Latin America, many economies are based on the tourism industry within. With a global cool down in the economy, many of these dependent countries may see a drop in tourism numbers. Many have put out ad campaigns hoping to draw back in the tourists that are so necessary here.

Costa Rica is one of the US tourist favourite destinations. Minister of Tourism there, Carlos Benavides will push a US $14 million campaign for advertising and marketing of the country to generate tourists. The goal of the campaign will be to lure back in many of Costa Rica’s tourists who have started to wander to locations in Asian countries such as Thailand. Additionally, the campaign will centre around the fact that Costa Rica is closer as well as more affordable to visit than these far off destinations. The Minister here is worried about what a US recession could do to tourism in the country.

In other areas, such as Aruba, bad press is holding the country back from reaping the rewards it once saw in tourism. Here, many believe that the US tourism fell off after the Natalee Holloway case surfaced. The tourism officials here will invest too in ads hoping to draw back in necessary and needed tourism dollars. Up to 70 per cent of visitors to Aruba are from the US. A major ad blitz is planned to market the country.

A drop in tourism dollars in any of these regions could hurt these country’s economies considerably, most economists believe.

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Article source: http://www.propertywire.com/news/south-america/latin-american-countries-hoping-to-boost-tourism-20080208385.html

Subprime lending crisis has not hurt much of Latin America’s housing market and with low to middle income housing growing quickly, the market here looks good.

In Latin America, the last months have shown significant benefit to the country with improving housing markets. Part of this has been due to the expansion of credit markets within these emerging countries. Yet many fear that the subprime market will cause the Latin American trends to falter - this has not been seen as of yet.

In Mexico, the increased amount of options for mortgaging properties has allowed for more affordable solutions. There is a large market for lower and middle income housing here, which has shown considerable growth. This was due to the creation of residential mortgage securities here back in 2003. In the last quarter of 2007, these insurers helped to provide US $1.5 billion worth of new mortgage loans.

That does not mean that there will be no effect from the subprime lending industry. Most investors believe that locations like Mexico will be hit by the slowing US economy, which would drive down the purchases of foreign produced products.

The US housing market and the credit crunch, which will help to tighten the belts of many lenders, have not hit Mexico or other Latin American countries just yet. Here many homes cost about US $40,000 and are very small. One of the factors helping to avoid the small fall as seen in the US is that Mexican lenders do not provide loans like this to borrowers that have poor credit histories.

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Article source: http://www.propertywire.com/news/south-america/latin-american-housing-market-strong-20080215439.html