Minha Casa, Minha Vida Initiative Continues To Revolutionise Brasilian Real Estate Market

Since its inception back in March 2009, under former President Lula

, the Minha Casa, Minha Vida programme has sought to address this problem. The Minha Casa, Minha Vida initiative is the largest social-housing scheme ever to have been undertaken in Brasil and it has had a profound impact on the Brasilian Real Estate Market, encouraging wide-scale investment from within the nation and on an international front.

The scheme aims to complete the construction of 3 million homes by the year 2014, as well as aiming to achieve a number of other objectives such as opening up the Brasilian mortgage market (which in itself grew by 55.5% back in 2010), to decrease the number of slums and to act as a catalyst for the Brasilian construction sector, which would ultimately create employment and improve wages.

Minha Casa, Minha Vida targets the lower realms of Brasilian society. The majority of properties (1.6 million) are for families earning between R$0 and R$1,635 a month (0-3 times the minimum monthly wage, currently R$545), 1 million homes will be built for Brasilians whose monthly wages range from R$1,635 to R$3,270 (3-6 times the minimum wage) and 400,000 units for those earning between R$3,270 and R$5,450 (6-10 times the minimum wage).

The programme is currently in its second phase aiming to build 2 million homes by the end of 2014. During this stage a number of changes were implemented including: raising the price ceiling for units (e.g. from R$100,000 to R$130,000 in capitals with over 500,000 inhabitants, e.g. Natal in Rio Grande do Norte), the installation of solar panels and the end of height restrictions on apartment blocks.

Since the project began, the Minha Casa, Minha Vida initiative has continued to revolutionise and contribute to the massive growth of the Brasilian Real Estate Market. Fundamentally, it has attracted international investment and aided the recognition that Brasil has received as an investment opportunity.

British property investors in particular have been drawn in by the appeal of the Brasilian Real Estate Market and year-on-year, more British investors continue to invest in Brasilian property.

Furthermore, the Minha Casa, Minha Vida programme has also revitalised the Brasilian Construction Industry, encouraging housing development companies to get involved in helping Brasil to grow and enhance its reputation as rapidly developing nation and a prime hotspot for investment.

With 2014 on the horizon, the Minha Casa, Minha Visa scheme remains on track to complete many of its objectives and with fresh investment continuing to pour in, the opportunities that the project is creating and the waves that it is making, the future of the Brasilian Real Estate Market looks bright.

by: Waseem Saddique

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