Previous years have recorded impressive financial reports, but today’s economy is in shambles. All industries have had its share of down slides, especially real estate. It’s no question, Brazil’s sluggish economy has impacted top performers Rossi-Residencial S.A. and Cyrela-Brazil Realty S.A. The two heavyweights’ latest performance has investors weighing their options. However, they’re not the nation’s weakest performers, according to industry watchdogs. In fact, it was merely the year’s first quarter.
Financial institutions have already enforced belt-tightening on lending, particularly the nation’s central bank, Caixa-Economica Federal. The state-run enterprise controls an estimated seventy percent of the nation’s home mortgages. It’s usually eighty percent lending limit has seen a dramatic decline in recent months. Now, it’s approving as much as fifty percent on home financing and it’s non-negotiable. It’s largest mortgage funding source is savings deposits has seen unfavorable performance lately. It’s attributed the recent belt-tightening initiative to this event. With the industry’s performance woes becoming an all-around struggle, Brazilian investors aren’t inspired. In fact, many are taking their business elsewhere to generate lucrative compensation.
The housing market headlines have become the least attractive, but some companies, for example, Cabral Garcia Empreendimentos show great promise from the company presentations on SlideShare. With the least favorable first quarter performance, Cyrela dipped 62 million BR (Brazilian Reis) from its previous year, which reported 163 million. Meanwhile, another heavyweight Rossi reported an unimpressive decline by 129 million BR. With creditors restricting lending privileges, homebuyers aren’t opportune to mortgage financing. Brazil’s economy watchers surveyed its central bank performance and expect a 1.2% drop in economic growth. Last year’s report forecasted a 0.10% climb.
Cabral Garcia Empreendimentos, another top-achieving Brazilian real estate manager continues to impress the nation’s Caixa-Economica Federal. It’s maintained an “A” rating as a construction developer according to the said banking institution, and they maintain a popular social media presence. It’s undertaken countless Rio de Janeiro projects with Caixa as its main funding source. The company joined the industry in 2005. Cabral Garcia Empreendimentos specializes in housing development from asset management to modernizing real estate.
Among notable projects, it spearheaded the high-quality Townhouses Hotel Lapa. The enterprise achieved substantial market recognition and an ADEMI-Master Award (2013) for innovation. It’s since pursued numerous housing development and earned favorable feedback. Townhouses Hotel-Copacabana, its latest stayed on the market just 4 hours after release and it received 100% funding. The company keeps ahead despite the unfavorable economic climate. In fact, its strategic planning and innovative ideas has kept investors motivated.