Housing plan already improves builders earnings
DCI
The growth of the economy in the third quarter is motivating the real estate market, pushed also by the "My Home, My Life" ("Minha Casa, Minha Vida") program and the resumption of the investments in residential and commercial properties. Because of the housing program of the Federal Government, Camargo Corrêa Desenvolvimento Imobiliário (CCDI), a subsidiary of the Camargo Corrêa group, saw its sales increase by 300%.
"We felt a retraction in sales from 2008 to 2009: from 500 units a month to 150. With the program, in April, our sales went up to 550. Today, I don't have anything else on hand, our sales increased by 300%", says Henrique Bianco, President of HM Engenharia, construction company acquired by CDI to operate in the low-income segment. The company has 4,737 units, contracted through the "My House, My Life" program with the delivery scheduled for December this year. Until next year, it intends to launch another 23,000 units in the State of São Paulo (Metropolitan Region of Campinas and Sao Paulo).
According to Caixa Econômica Federal (the Brazilian Federal Savings Bank), the real estate credit reached R$ 30.7 billion (US$ 17.8 billion) until September, exceeding the same period of last year by 79.3%. In the third quarter, it was R$ 13.2 billion (U$ 7.7 billion) in real estate credit, 94% more than what was registered last year.
Even, a land developer, presented strong increase in the profits in the third quarter, 152%, amounting to R$ 51.9 million (US$ 30.2 million). The contracted sales reached R$ 435 million (US$ 252.9 million) in the period, R$ 202 million (US$ 117.4 million) of which from the stock the company wasn't being able to sell in the beginning of the year, giving signs of recovery. The company ended the third quarter with R$ 283 million (US$ 164.5 million) in cash.
Even selling less than in the third quarter of last year, Tecnisa registered profit of R$ 32.6 million (US$ 19 million) in the third quarter, which corresponds to an increase of 119.9% compared to the R$ 14.8 million (US$ 8.1 million) verified in the same period in 2008. The net earnings increased 54.4% to R$ 195.3 million (US$ 113.5 million). The General Sales Volume (GSV) fell 71% in the quarter, to R$ 121.4 million (US$ 70.6 million), due to the 121% increase on the average value per square meter.