Brazilian research highlights

Itaú Asset Management & SITAWI, Real Estate, 2012

Luiz Felix Cavallari, Alexandre Gazzotti & Frederico Seifert, Gustavo Pimentel 
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Real Estate Developers are usually placed in top positions on rankings of consumer complaints. Irregularities related to consumer rights, such as delays and poor quality projects, have been increasing steadily, even leading to suspension of new sales. The Brazilian Government’s programs for house financing are being successfully incorporated to the strategy of Home Builders, generating strong revenue growth, but the need to abide to price caps and tight deadlines are leading to more complaints and lawsuits for the violation of consumer and employees’ rights. The Brazilian real estate sector is highly exposed to the new National Policy on Solid Waste Management, but the specific sector norms are still being discussed, bringing substantial regulatory risk. In addition, the waste management processes adopted on construction sites can be used as an efficiency indicator.