Bank of lands guarantees investments in high class
DCI
The "My House, My Life" (Minha Casa, Minha Vida) program of the Federal Government has affected the mood of the building sector, taking into consideration that several companies, after the announcement of their results in the second quarter of 2009, said they were making efforts to invest in projects for the lower class. In the other end, however, the high class will not lose vigor should it depend on some building companies and land developers accredited by the Federal program.
What guarantees the continuity of investments in this strong segment of the real estate sector is the bank of lands the large companies of the sector have. For the president of the real estate market consulting firm Newmark Knight Frank, Sérgio Negro, "those owning a stock of land for the high income will not stop investing in this segment". The commercial director of Rossi Residencial, Leonardo Diniz, assures the company "has great volume in the bank of lands". The executive says the company intends to invest outside the State of São Paulo, but he affirms it will not stop "taking advantage of the opportunities in São Paulo".
From the R$ 20.9 billion (US$ 11 billion) of general sales value (VGV, in Portuguese) in the bank of lands of Rossi, R$ 1.089 billion (US$ 573.2 million) is intended for the next launchings, with units above R$ 500 thousand (US$ 263.2 thousand), in the metropolitan region of São Paulo. Cyrela Brazil Realty also showed in its results for the second quarter of this year it is ready to invest in high class. The company accumulates a VGV of R$ 4.7 billion (US$ 2.5 billion) in bank of lands, with exchanges, all over the Country. "No one wants to lose its share", affirms the vice-president of the Brazilian Construction Industry Chamber (Câmara Brasileira da Indústria da Construção) (CBIC), José Carlos Martins. For him, those interested in luxurious real estate "hardly suffer with the crisis like the middle class purchasers".
Rossi's results from the last quarter explain the confidence Diniz has. There are records of the launching of 245 units of high class with a VGV of R$ 163 million (US$ 85.8 million). It is a considerable value if compared to the R$ 211 million (US$ 111.1 million) of the VGV of launchings for the low income segment. Diniz does not disclose how much Rossi will invest in launchings in the second quarter, but he emphasizes the goal is to increase the production in relation to the second quarter.