New home sales climbed 22.3 % to 24,712 units in the first quarter, up from 20,209 units last year, according to Brazil’s Cbic construction industry body. Launches of new projects by Brazil’s homebuilders, however, dropped some 30.7 percent from the same period a year ago.
After a brutal recession that caused a number of homebuilders to go bankrupt in Brazil, the market is heating up. But many homebuilders still need to get rid of units that did not find buyers during the crisis, meaning that some builders are not in a position to aggressively launch new projects.
The key market of Sao Paulo also saw a drop in launches due to a number of bureaucratic issues with the city government.
Cyrela Brazil Realty SA and MRV Engenharia e Participacoes SA, Latin America‘s two largest homebuilder, are both based in Brazil. (Writing by Gram Slattery; editing by Jonathan Oatis)