The firm also applies its vast experience in matters related to real estate investment funds, mergers, subdivisions and condominiums.
Presentation made by the attorneys Iris Bennett, Partner of the US Law Firm Smith Pachter McWhorter PLC, and her associate Paulo Gusmão, together with André de Almeida and Leonardo B. Leite, partners of Almeida Advogados.
Brazil’s real estate market has rapidly expanded, thanks to significant foreign investment in companies and projects. At the same time, large Brazilian real estate companies have invested capital and gained market share through mergers and acquisitions.
Based on information made available by the Central Bank of Brazil, new real estate financing totaled R$20.2 billion between April 2007 and March 2008, as compared to R$10.46 billion between April 2006 and March 2007.
Another positive growth factor involves increased credit for low-income purchasers. Recently, Brazilian financial institutions have liberalized lending rules, while nonetheless maintaining legal guarantees in the event of breach.
The country’s financial market also offers numerous real estate-related options, including securitization of receivables, real estate funds and financing subject to built-to-suit developments.
As one of the most important banks for real estate financing, Caixa Econômica Federal currently handles 70% of the real estate purchase agreements in Brazil. In addition, the civil construction sector will receive over R$3 billion for construction of houses and apartments.
Area specialists also emphasize the pent-up demand for 7 million units at all levels and regions throughout Brazil, particularly for first-time buyers. For purchasers of second homes, international investments (mainly in Brazil’s Northeast region) often target foreign purchasers.
In Brazil, we see a developing real estate market that both adopts international trends and adjusts them to the country’s unique environment, which includes its architecture and specific (urban and rural) characteristics.
Almeida Advogados provides intelligent and effective solutions for the real estate market based on clients’ administrative, tax and environmental needs. We have years of experience in assisting with real estate investment funds, mergers, subdivision of land and condominium construction. We also provide representation in drafting and reviewing agreements, and for structuring all types of real estate developments.