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62 entities

National and international representative of firms active in the Construction Industry and Real Estate Market. UNIONS, ASSOCIATIONS, AND CHAMBERS. Construction segments. Real estate market. Sanitation and sewage treatment. Highway projects. /. 62 entities. 26 states and the FD.

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62 entities

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  1. National and international representative of firms active in the Construction Industry and Real Estate Market

  2. UNIONS, ASSOCIATIONS, AND CHAMBERS Construction segments Real estate market Sanitation and sewage treatment Highway projects / 62entities 26states and the FD

  3. GENERAL INFORMATION BRAZIL

  4. POPULATION DISTRIBUTION Source: IBGE, 2010 Census.

  5. GDP GROWTH RATES In the period 2011-2014, the consolidation of investments (driven by construction) and increased domestic demand is expected to spur average annual economic growth of 4,7%. Source: Brazilian Institute of Geography and Statistics (IBGE). Preparation and estimates by the Ministry of Finance.

  6. GROWTH WITH POVERTY REDUCTION POPULATION IN POVERTY (% OF POPULATION) Sustainable growth associated to inclusive policies will enable a 70% reduction in poverty in the period 2003-2014 Source: FGV. Preparation and estimated by the Ministry of Finance

  7. ASCENSION OF THE MIDDLE CLASS COMPOSITION OF THE BRAZILIAN SOCIAL CLASS (MILLIONS) From 2002-2009 (7 years), a total of 25.7 million people were incorporated to the middle class (C) (in 2011, Socioeconomic Class C represented 55% of the population). Note: Monthly household per capita income by class at 2009 prices: Class A/B: more than R$ 4,800.00; Socioeconomic Class C: R$ 1,115.00 – R$ 4,800.00; Class D: R$ 804.00 – R$ 1,115.00; Class E: up to R$ 804.00. Source: Getúlio Vargas Foundation/National Household Sample Survey. Prepared by the Ministry of Finance

  8. FORMAL JOB CREATION GROWTH IN BRAZIL Source: CAGED, Ministry of Labor and Employment. Prepared by the Ministry of Finance *12-month cumulative through January

  9. MARKET EXPANSION • DEMOGRAPHIC BONUS (expansion of economically active population) From 1995-2040, Brazil the number of economically active individuals will exceed the number of dependents (larger supply of labor and new consumers Source: IBGE.

  10. REAL ESTATE MARKET

  11. KEY SOURCES OF RESOURCES Source: Brazilian Central Bank (BACEN) and Federal Savings Bank (CEF) – FGTS Channel. CBIC Database.

  12. GROWTH IN REAL ESTATE CREDIT 2002 – 2011 (financing volume)28 The first quarter of 2012 registered a 10% increase in financing volume against the same period of the previous year Note: New and used units Source: Brazilian Central Bank (BACEN), Brazilian Association of Real Estate Credit and Savings (ABECIP), and Federal Savings Bank (CEF) – FGTS Channel. CBIC Database.

  13. CREDIT TRANSACTIONS FOR INDIVIDUALS CREDIT TRANSACTIONS FOR INDIVIDUALS (R$ BILLION) Real-estate credit has grown faster than other forms of individual credit Fonte: Central Bank of Brazil, Produced by: Ministry of Finance

  14. HIGH QUALITY REAL ESTATE CREDIT Brazilian Savings and Loan System (SBPE) – Agreements with more than 3 outstanding installments signed after 1998 MortgageGuaranty + FiduciaryLien FiduciaryLien Source: Brazilian Central Bank and Brazilian Association of Real Estate Credit and Savings (ABECIP)

  15. REAL ESTATE FINANCING AS A PERCENTAGE OF GDP Source: Brazilian Central Bank (BACEN) and Brazilian Association of Real Estate Credit and Savings (ABECIP). Preparation: CBIC Database

  16. ? WHY HAS THIS DEVELOPMENT TAKEN PLACE

  17. BRAZILIAN ECONOMY: FORECAST * IMF Forecast Source: Brazilian Institute of Geography and Statistics (IBGE). Preparation and estimates by the Ministry of Finance.

  18. LAW No. 10931/2004 • Greater legal security; • Significant resource allocation; • Streamlined procedures; • Decision to serve as lever of growth; • Financial segment discovers real-estate credit.

  19. Increased Employment levels Increased demand for real estate Reduced interest rates LAW No. 10931/2004 Increased funding for real estate market VIRTUOUS CYCLE FOR REAL ESTATE MARKET Lower costs

  20. MY HOME, MY LIFE PROGRAM • Lowers interest rates; • Extends payment terms; • Reduces taxes; • Provides resources for subsidies; • Streamlines procedures; • Increases purchasing power of low-income households.

  21. MY HOME, MY LIFE PROGRAM • SEGMENT 1 • Householdincomesupto US$ 842.10 • Almostfullysubsidized. • SEGEMENT 2 • Householdincomesfrom US$ 842.10 - US$ 1,631.58 • Reducedfeesandcosts; • Lowerinterest. • SEGMENT 3 • HouseholdincomesfromUS$ 1,631.58 - US$ 2,631.58 • Reducedfeesandcosts; • Lowerinterest. Source: My Home, My Life Program. US$ = R$ 0.526

  22. BUSINESS OPPORTUNITIES • Investments in publicly traded companies; • Production of enterprises; • New technologies.

  23. OTHERS BUSINESS OPPORTUNITIES

  24. SHOPPING CENTERS Source: ABRASCE Photograph of the Pátio Brasil Shopping Center – Federal District

  25. TOURISM TOURISTS TO BRAZIL Source: Brazilian Federal Police Department and Ministry of Tourism Foto do Shopping Pátio Brasil - DF

  26. BUSINESS OPPORTUNITIES • Commercial projects • Built to Suit;

  27. RECOMMENDATIONS • Local partnership; • Choose your business well; • Analyze opportunities throughout Brazil; • Understand technical and legal standards and regulations.

  28. HOW CAN CBIC HELP ? Institutionally • At Government level • Executive • Legislative • Civil Society at large • NGOs and Social Movements; • Employers and Business Organizations • Unions (workers’) • CBIC has associates across the country and participates in all construction activities, where it may offer institutional support to investors

  29. www.cbic.org.br vicepresidente@cbic.org.brPhone: +55(61) 3327-1013 Fax: +55(61) 3327-1393 BRAZILIAN CONSTRUCTION INDUSTRY CHAMBER Thanks !

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