Minha Casa Minha Vida Investment in Brazil on Track

Taking stock of Minha Casa Minha Vida, the largest real estate investment in Brazil, President Dilma Rousseff believes the social housing programme has benefitted the country hugely. She has pledged total government commitment to these affordable housing developments in Brazil.

One of the most ambitious social housing projects in the world, Minha Casa Minha Vida aims to build a total of 3 million properties in Brazil by the end of 2014. The bulk of these properties (1.2 million) are for the lowest income Brazilian families - those earning between zero and three times the minimum wage.

Progress in Minha Casa Minha Vida in 2011

Speaking on her weekly radio programme, Dilma reviewed the situation of Minha Casa Minha Vida (MCMV) in 2011. According to government figures, over 354,000 contracts for social housing projects have been signed so far this year; more than 500,000 MCMV properties in Brazil (houses and apartments) are under construction; and around 400,000 units have been finished this year.

The balance for 2011 plus the units built in 2009 and 2010 bring the MCMV total to around 1.5 million properties, half the target in this large-scale Brazilian real estate investment. Dilma announced that government priority for 2012 is the zero to three times minimum wage bracket. This social sector will benefit from 60% of the MCMV allocation.

A Win-win Investment Opportunity

As well as giving thousands of Brazilian families a much-needed opportunity to get on the property ladder, MCMV has provided huge benefits to Brazil as a whole. The massive injection of government funds into the Brazilian real estate market - investment between now and 2014 will total R$125.7 billion - has boosted the economy and the job market.

Highlighting these benefits, Dilma pointed out that MCMV is responsible for the current boom in civil construction in Brazil. Over 309,000 jobs have been created within the sector this year, a figure that goes some of the way to explaining Brazil's lowest unemployment levels ever. "Minha Casa Minha Vida helps maintain a healthy employment market," said Dilma, "despite the international economic crisis affecting the US and European countries."

The new provisions recently introduced by the Brazilian government to bring MCMV investment to smaller towns will undoubtedly boost the economy and job market further. Towns with under 50,000 inhabitants can now form part of the social housing programme. North east Brazil will receive the largest share of the 110,000 units with the construction of nearly 44,000 properties.

"In spite of its huge scale, Minha Casa Minha Vida is achieving excellent results," says Gary Hardacre, CEO of Obelisk International, one of the international developers involved in this real estate investment project. "With its massive social and economic benefits plus great investment potential, this really is a win-win investment all round."

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