In order to access the texts, please click on the respective titles or on the separately indicated links. Each link is accompanied by a short summary/abstract of the text´s or essay´s contents and main tenets. The page is constantly being updated with recent literature. The focus here, opposite to the news section, is to divulge more fundamental and sometimes academic/analytical articles and analyses about Agriculture, Real Estate and Renewable Energy Projects in Brazil.
Additionally, you will find several databanks as well as a glossary explaining technical and legal terms and abbreviations regarding the real estate market in Brazil. You may also navigate directly to the thematic subsections:
- Agronomics, Agriculture and Rural Investments
- Real Estate/Investment and Economic Studies
- Renewable Energies, Photovoltaic and Eolic
- Subsection 2: Websites and Databanks
Keyword: Literature Brazil
Agronomics, Agriculture and Rural Investments
Araujó, Paulo Fernando Cidade de/Nicolella, Alexandre Chibebe et altera 2018: Contribuição da FABESP ao Desenvolvimento da Agricultura no Estado de São Paulo. Centro de Documentação e Informação da FAPESP (Fundação de Amparo à Pesquisa do Estado de São Paulo).
Short Summary and Abstract: This extensive and detailed publication, created and edited by numerous authors of the FABESP (Fundação de Amparo à Pesquisa do Estado de São Paulo – further information: https://fapesp.br/ ), accounts for the tremendous significance of the agricultural sector for the state of São Paulo. While it appears that in modern times there is a trade off between industrialization and a decline of the significance of the agricultural sector, the authors in this study argue contrarily. The importance of agriculture for the Brazilian economy has increased continuously over time, and the agricultural sector benefits from tendencies of modernization and technical revolutions brought about the R&D as well as non-agricultural developments. The more than 400 pages article provides numerous examples of modern developments in agriculture, focussed on the state of São Paulo, and also the contributions by the renowned FABESP. It is additionally a hommage to Prof. Paulo Cidade (1932 – 2016), one of Brazil´s most renowned agricultural researchers who influenced the field significantly. This literature is highly recommended for all those that want to get an in depth view of Brazilian agriculture and its future perspectives.
Buol, Stanley W. 2009: Soils and Agriculture in Central West and North Brazil, in: Sci. Agric. (Piracicaba, Braz.), v.66, n.5, p.697-707
Short Summary: This relatively compact paper, elaborated the by renowned agronomist and soil expert Stanley Buol, pinpoints the agricultural expansion in Brazil to previously non-fertile or highly acid areas by applying new methods of soil improvements. He affirms that ” naturally acid soils with high contents of aluminum and iron oxides and low CEC (Cation Exchange Capacity) values and organic matter contents long considered insurmountable obstacles to crop production in tropical latitudes could be extremely productive.” He concludes that Brazil “has the potential to lead the world in its quest to provide food for growing human populations”.
Cezar de Souza, Climaco 2015: Gaseificadores de biomassa: um novo futuro energético sustentável e justo, do Brasil para o mundo
Short Summary: The author advocates a new energetic approach in Brazil, focussing on the use of biomass, which is abundant in Brazil, in technologically advanced gasification systems. He enumerates different forms and modalities.
Cezar de Souza, Climaco 2015: Estudo Comparativo de Geração de Energia Elétrica por Cavacos de Madeira
Short Summary: A rather compact and comparative study of Energy Generation based on wood and splints, with several continuative links to further literature.
FGV Fundação Getúlio Vargas, Various Authors 2017: Brazilian Agribusiness: China and international Trade, in EESP/Agro Publications N° 30, 2017
Short Summary: The Brazilian Agribusiness: China and International Trade (Original Title: O Agronegócio Brasileiro – China e Comércio Internacional) is a bilingual publication made in partnership with the Agribusiness Center of the Getulio Vargas Foundation (GV Agro – https://gvagro.fgv.br/en/node/143 ). The study focuses on Brazilian agribusiness, which, during the last decades, has played an important role in the expansion of the country’s international trade, and bilateral relations with China, which, besides being the second largest global economy and one of the markets, is a major trading partner of Brazil. Thus, the study addresses not only the insertion of Brazilian agribusiness in global value chains, reflecting on the new export agenda and the international investment flows, but also conducts a broad analysis of the Chinese economy, pointing out challenges and opportunities, especially agribusiness and relations with Brazil
Francisco, Eros/Gimenez, Leandro 2015: Brazilian Precision Agriculture in Perspective, published by the IPNI (International Plant Nutrition Institute)
Short Summary: The Presentation reflects a lecture held by Dr. Eros Francisco and Dr. Leandro Gimenez in 2015, highlighting the enormous potential of the Brazilian agricultural sector. Their main statement is that expansive and intensive agriculture can be performed without causing environmental damages, like expanding into the Amazon area or natural reserves.
Short Summary (Abstract): Brazil, while having developed a strong industrial and service sector, is also still an agricultural country, with an astounding 190 Mha of pastures sustaining 209 million cattle. Fewer than 10% of the cattle are fattened in feedlots, while cattle reared on pastures have a competitive advantage for export, eliminating the risks caused by the mad cow disease (bovine spongiform encephalopathy) and considerations related to animal welfare. Brazil has been the world’s largest exporter of beef since 2004 and has the largest commercial herd in the world. In 2011, 16.5% of its production was exported, and the livestock sector contributed 30.4 % of the GNP from agribusiness and 6.73 % of the total Gross National Product. A large number of forage breeding programs, mainly at Embrapa, have contributed to the development of improved pastures, and cultivars of Brachiaria brizantha, B. decumbens, B. humidicola and Panicum maximum are the main pastures used in the country. All have apomictic reproduction, which means there are few cultivars occupying very large, continuous areas, thus suggesting a risk to the productive system. Such is the case of B. brizantha cv. Marandu, which occupies around 50 Mha. The Brazilian tropical forage seed industry is also significant, and Brazil is the principal seed exporter, supplying all Latin American countries. Due to pasture degradation, around 8 Mha is renovated or recovered each year. Forages are also used and planted each year in integrated crop-livestock and integrated crop-livestock-forest systems. Nowadays, these systems occupy 4 Mha. Improved pastures are thus a major asset in Brazil not only for the beef production chain but also for the dairy industry.
Lima, Antônio Agostinho/Oliveira, Francisco Nelsieudes/Aquino, Antônio Renes Lins: Solos e Aptidão Agrícola das Terras do Estado do Tocantins, in: Embrapa Agroindustria, Documento 31, 2000.
Short Summary: An abundant analysis detailing the soil conditions in Tocantins, including a taxonomy, general geographic and pluviometric conditions, as well as recommendations for agricultural use. The text focusses on different soil types (like argila or latossol) and derives the most appropriate cultivating methods. Only a few studies of this kind of been conducted in contemporaneous literature.
Lobato, J.F.B. et altera: Brazilian beef produced on pastures: Sustainable and healthy, in: Meat Science 98 (2014) p. 336–345
Short Summary (Abstract): With a herd of about 209 million cattle, Brazilian beef production estimate for 2023 is 10,935 million tons, representing an increase of 28.9% and accounting for 20% of the world trade. Beef cattle production is constantly evolving; however, there are extremes, ranging from simple existing farm ranches to intensive forage systems, strategic supplementation, updated health and genetic improvement programs for the production of quality beef. This modern production is based on scientific research carried out at universities and other research institutions. A new generation of professionals with multidisciplinary knowledge and a holistic vision of the productive chain proposed management practices to decrease greenhouse gas emissions in the production of grass-fed beef cattle, whose meat has elevated omega-3 and CLA contents. Significant increases in the ratio calves/100 cows, adequate traceability for pastoral systems with hundreds or thousands of animals per farm and a more intense transference of technology are required.
Lopes, Mauricio Antonio: Agricultural Innovation and Challenges for Promotion of Knowledge and Information Flows in Agrifood Systems in Brazil, Brazilian Agricultural Research 2011
Short Summary: A presentation for the OECD Conference on Agricultural Knowledge Systems, focussing on innovative measures in Brazil´s rapidly growing agriculture, based on information distribution and the introduction of innovative management concepts.
Oliveira, Fábio Alvares/Sfredo, Gedi Jorge/Caso, César/Klepker, Dirceu: Fertilidade do solo e nutrição da soja, in: Circular Técnica, Londrina 2007
Short Summary: The analysis provides a fertility study of Brazilian soils, focusses on a cientific approach for measuring the fertility in general, the acidity in specific and recommends approaches in order to correct for over-acidity of soils.
Short Summary: This overview presents an encompassing synopsis of the geographic and pluviometry conditions of rural areas in all Brazilian states. It contains actual data (2012) with abundant statistics regarding price developments, production and productivity patterns etc. The analysis gives a preliminary impression of Brazil´s agricultural potential.
Taliarine, Adriana Botelho 2015: A importância da Gestão no Agronegócio Brasileiro, in: Revista Perspectiva em Gestão & Tecnologia, Vol. 4 No. 8
Short Summary: The study sheds light on the significance of planning and controlling in the agricultural sector in Brazil. The author critizices that, while the contribution of agriculture in Brazil to the PIB is immense, the degree of efficient planning and controlling is less developed than in other parts of the economy. Thus, she emphasized the importance of improving the administrative and financial capabilities of a sustainable agriculture.
Yeo, Frank/Ortmeyer, Kent 2020: Investment Opportunities in the Brazil Agribusiness Sector, Brazil-Agri-Invest: Brazil Agribusiness Investment Opportunities 2020 v8
Short Summary: The Executive Paper provides a comprehensive outlook on the Brazilian agriculture sector in 2020, focussing on the farmland and cattle sectors.
Further Reading/Extending Literature:
Hungria, M./Campo, R.J./Mendes, I.: Fixação biológica do nitrogênio na cultura de soja, Londrina, Embrapa Soja, 2001 (Circular Técnica, 35)
Short Summary: Investments into the agricultural sector, agribusinesses and farms in Brazil premise ample knowledge about the chemical and geological conditions present in the various regions of Brazil. The current study focusses on the cultivation of soy, with the authors advocating a new “technology”, that is a symbiosis between a bacterium and nitrogenium to provide for sustainable growth of soy, without exhausting natural resources.
Short Summary: The study, authored by the renowned agronomist Bernardo van Raij, provides an overview over the conditions of the soil in different regions of Brazil, parting from the geological conditions of the soils, to the interactions between soil and nutrients to methods of increasing soil fertility. A highly recommended study for those aiming at investing into crop-planting in Brazil.
Real Estate/Investment and Economic Studies
Agência Nacional de Transportes Aquaviários 2020: Anuário Estatístico (Annual Statistics) 2019: Anuário-2019-vFinal-revisado
Short Summary: This presentation, published by the National Agencies of Maritime and River Transportation, summarizes the growing economic performance of maritime and water transport in Brazil in 2019. The numbers are impressive and represent a direct improvement in infrastructure, which impacts several connected economic sectors, among them agriculture.
Almeida, Renan P. 2020: Real Estate Markets in Brazil’s Second-, Third- And Fourth-Tier Cities, Universidade de São João del Rei, Department of Economic Science.
Short Summary: This paper analyzes the real estate markets in Brazil’s second-, third- and fourth-tier cities (opposed to first tier cities as the big metropolis like Rio de Janeiro or Belo Horizonte). Taking advantage of a unique dataset, this study explains the variability and creates typologies of real estate markets in the selected cities through several multivariate methods. This approach allows for understanding the most relevant variables to study real estate markets and shows similarities and dissimilarities. Results indicate that real estate markets are quite segregated within each urban agglomeration. Inside each of them, real estate markets vary substantially; outside each of them, there are intriguing similarities. The city rank in the urban-system is not a key criterion for being classified in a given cluster. These findings hold relevance for housing policy, migration debates and for the relationship between macroeconomic cycles and real estate markets.
Short Summary: This 32 pages report summarizes quite concisely the advantages and benefits of investing in the real estate market, showing a constant growth since 2017.
Araújo, Cristina Pereira/Abreu, Luciano Muniz 2021: From fishing villages to international tourist destinations: where are the citizens? The cases of Cabo Frio, Rio de Janeiro and Porto Seguro, Bahia – Brazil, in: Sociedade e Natureza, Editora da Universidade Federal de Uberlândia – EDUFU
Short Summary (Abstract): The present article examines the relationship between tourism, production of space and the role of residents at two hotspot tourist destinations in Brazil: Cabo Frio, located in the State of Rio de Janeiro and Porto Seguro, in the State of Bahia. The
development of the tourist industry in the localities under study occurred at different points in time. In the first, the urbanization process was associated with the acquisition of second homes in the 1950s, while the second, located in the Northeast region of the country, this process emerged in conjunction with the mass tourism industry only in the late 1980s. We hope this research will enhance understanding of the process of urbanization and the configuration of tourism space and the conflicts arising from this in developing countries, notably Latin America.
Our methodology employed theories based on those developed by Chesnais (1996, 2005, 2016), Harvey (2005, 2008, 2011, 2014), Santos (2006) and others to explain the production of space in a way that goes beyond the use of historical data and
socioeconomic analysis. The initial conclusion was that, despite the differences in the process (mass tourism vs. second homes, development in space and over time and geographical position), the two geographical locations selected presented the
same findings: unequal production of space and the exclusion of local populations.
The tourism activity investigated in these two case studies thus appears to replicate the current stage of development in Brazil, characterized by inequality and exclusion and reflected in the landscapes of the country’s tourist destinations.
Araújo, Victor de/Vasconcelos, Juliano 2022: Timber housing economy in Brazil: 2013 to 2022 scenarios and crises, in: Advances in Forestry Science
Short Summary of the paper: In Brazil, a particular and well developed sector is Timber housing. The article highlights its development during the last 10 years, stating that it is essential for civil construction and forestry chains. This paper intends to estimate scenarios to delimit the annual volume of this sector. Three years were studied from rare data available in the literature. From these national outcomes, projections for next years were developed. Multiple case approaches composed the literature-based methodology. As a result, the sector endured distinct internal and external economic instabilities, whose associated factors compiled political and sanitary crises, specially, with negative influences. The economy of timber housing reached an average about 500 million Dollars in 2014, being halved in 2015 due to the government crisis marked by the impeachment of the Brazilian president. From 2016 to 2019, small improvements were verified for this sector. In 2020, this favorable scenario was stagnated by the global Covid-19 pandemic. After 2021, a sectoral recovery is forecast based on positive expectations on the Brazilian economy. The two-year period of domestic presidential impeachment was more economically catastrophic than the current three-year phase of sanitary pandemic with global implications. From our economic forecasts, it was possible to attest that the Brazilian sector of timber houses is economically perceptible.
Barbosa, Denis Borges 2016: Ganho de Capital na Alienação de Imóvel (por Pessoa Física), Denis Borges Barbosa Advocates, Rio de Janeiro
Short Summary: The paper considers the sale of properties in the case of Brazilian residents (Nationals and Foreigners) and the related capital gains and its taxation. The Brazilian legislation provides for annual reduction percentages for properties acquired up to 31 December 1988. These percentages should be deducted from the capital gain earned due to the sale of the property.
Short Summary: The study focusses on the improved economic parameters getting ever more visible since january 2019, including stronger growth perspective and an overall trust in the reform-capability of the new government.
Short Summary: News Paper article focussing on the current real estate situation in Brazil, in which the author of this homepage gave an interview about general economic traits in the beginning of 2018. While not up to date anymore (as of June 2022), some tendencies and developments can still be seen on the current real estate market.
Brito Silva, Átylla Fernandes et altera 2016: ANÁLISE DE INDICADORES ECONÔMICOS DO MERCADO IMOBILIÁRIO EM GOIÂNIA, monography of the University of Goiania, department of Civil Engineering:
Short Summary: This monography, published at the University Press of Goiania in 2016, is one of the most encompassing studies regarding the parameters defining a regionally focused real estate market. It analyzes the supply and demand structure in Goiania, including infrastructural “key points” and variables. Goiania is one of the most rapidly developing states in current Brazil.
Cardoso Junior, Ailton/Guerra, Rodrigo Ribeira 2003: Parecer referente à aquisição de Propriedade Rural por Estrangeiro e criação de Pessoa Jurídica Nacional
Short Summary: The juridical report by Cardoso Junior & Guerra provides a general evaluation of the possibilities of acquiring rural properties in Brazil, focussing on particular on the legal status-quo situation as well as the requirements/necessities.
Further Statistical Information about Rural Properties in Brazil here.
Dias, Victor Pinas/Oliveira, Èrica Diniz et altera 2019: Non-Durable Consumption and Real-Estate Prices in Brazil: Panel-Data Analysis at the State Level, in: Revista Brasileira de Economia, v. 73, n.3
Short Summary: The article studies, in a comparative perspective, the dynamics of the real estate market from 2014 – 2019, stating that in Brazil the real estate sector represents, relatively, a larger proportion of the general wealth, resulting in a stronger impact of price changes. They also observe and evaluate the significant value increases (price increases) during the last years. By applying panel data methods, they evaluate whether house-price variation has a positive effect on non-durable consumption.
In order to download the publication, you need to register at the site of the Revista de Economia Brasileira.
Giambiagi, Fabio/Tinoco, Guilherme 2018: O Crescimento da Economia Brasileira 2018 – 2023, in: Perspectives DEPEC, BNDES
Short Summary: The Report, published for the BNDES, estimates the growth of the Brazilian Economy until 2023, considering among other variables the per capita revenue and average income growth of mid-strata families. It takes into consideration “catching up” effects, based on the downturn of the economy during the previous years. It concludes a growth projection of 2,7 – 3 %, which is, despite new developments in 2019, correspondent to the current estimates. Among others, they consider the civil construction industry, whose dynamics serve as a proxy for the general condition of the real estate market. After a severe decline until 2017, e recovery and resumption of growth is being projected.
Goés, Carlos/Garcia-Escribano, Mercedes/Karpowicz, Izabela 2018: Filling the gap: Infrastructure investment in Brazil, in: Journal of Infrastructure, Policy and Development (2018) Volume 2 Issue 2.
Short Summary: The article pinpoints Brazil´s deficient infrastructural past as main bottleneck for development and growth. Using quality and quantity indicators, it shows that Brazil´s infrastructure is low rank compared to other emergent economies. This has had significant impacts on economic indicators in the past. However, they come to a positive outlook, more than just a silver lining on the horizon: that with the upcoming investments in infrastructure this gap will be gradually closed.
IBAPE – Instituto Brasileiro de Avaliações e Perícias de Engenharia 2017: VALORES DE EDIFICAÇÕES DEIMÓVEIS URBANOS
Short Summary: This study aims to support the evaluation of urban buildings in the Metropolitana de São Paulo, either for the calculation of the sale value and for the application of the Evolutionary Method, as well as for the comparison of buildings of different standards, in the
application of the Direct Comparative Method of Market Data. It was updated in 2017 and is still up to date. It provides several orientations and guidelines for appraisers and property evaluations. Many of its parameters can also be applied to other Brazilian cities.
Short Summary: The report from KPMG provides a systemic base, covering the diversity and complexity of domestic and international structures and vehicles, which operate in long-term investment categories in Brazil. It provides for a very good overview, however with a slight pro-KPMG bias in its assessments.
Lamounir Locatelli et altera 2017: Real Estate Market of a Brazilian Metropolis: Sustained Growth or Speculative Bubble?, in: Strategic Finances, Mackenzie
Short Summary: The article intends to analyze the real estate sector of a Brazilian metropolis in the recent period of increased asset valuation in the country and to investigate if there are signs of a speculative bubble in this market. It concludes that the relative increase in property prices stems only from the belief that their selling price will be higher in the future. The effect is thus psychological. It is therefore foreseeable a decrease of real prices of housings, with equity losses for the participants in that market.
Leal, Denise Alves/Cavalcante Filho, J.U.P. 2018: Análise do Mercado Imobiliário da Cidade de Fortaleza A Partir do Calculo IVV, Universidade Federal do Ceará
Short Summary: The search for a better understanding of the real estate market behavior has been increasingly valued in times of crisis. In this context, the Sales Speed Index (SSI) is useful for variables such as neighborhood. This paper aims to analyze the results of the SSI of the Metropolitan Region of Fortaleza, Ceará, from January/2011 to September/2014 in relation to the most representative neighborhoods, allowing the inference of possible future behaviors regarding this criterion. It is concluded that there is a tendency of reduction of the SSI, especially during 2013-2014, possibly due to the economic recession. In addition, Maraponga, Cidade dos Funcionários, Cocó, Guararapes and Aldeota are the neighborhoods that presented the highest number of offers and sales. On the other hand, Centro, Varjota, Praia de Iracema and Mucuripe constitute the neighborhoods with the lowest results.
Matos, Thiago Oliveira de 2017: A expansão do mercado imobiliário no Brasil: Um paralelo entre a evolução dos preços no mercado
brasileiro e a bolha imobiliária norte-americana, Department of Economic Sciences, PUC-Rio de Janeiro
Short Summary: This monography, published at PUC Rio de Janeiro, section of Brazilian Real Estate, concentrates on a comparative and encompassing analysis of the real estate markets in the United States of America and Brazil. The author distinguishes between both country´s different histories, that led to different real estate market dynamics, but also credit policies. The author draws also a comparison between Brazil´s and the US real estate growing bubble, which in the United states resultated in quicker “corrective” market mechanisms, leading to a relatively short-term equilibrium between supply and demand. However, in Brazil this adaptation has taken considerably longer, resulting in a gap between supply and demand. This gap is now gradually being closed and the real estate market is returning to an equilibrium state.
Miele, Sávio Augsto de Freitas 2007: O movimento da economia financeira na dinamica imobiliária em São Paulo, Universidade de São Paulo
Short Summary: While this monography (a remarkable Dissertation by Sávio Augusto de Freitas Miele) was written 15 years ago, the dynamics described are still valid nowadays for many Brazilian cities, here exemplified for the real estate market in São Paulo. It describes in detail the financing modalities of larger residential constructions and the restructuring of the urban space after 2000.
Morais, Maria da Piedade/Oliveira Cruz, Bruno de, 2015: Demand for Housing and Urban Services in Brazil – a hedonic approach, in: Discussion Papers (120), IPEA
Short Summary: This extensive monography attempts to estimate the demand for housing and urban services in the major Brazilian metropolitan areas, as a contribution for the formulation of public
policies of urban development. The theoretical approach used is the hedonic prices
model (Rosen, 1974), which relates price with the property characteristics. The data
was sourced from the 1997 National Household Survey (Pnad), published by the
Brazilian Institute of Geography and Statistics (IBGE), encompassing 10 MAs. We
have verified that the provision of proper housing and urban infrastructure services can
significantly increase property prices in metropolitan areas, implying that such policies
may have strong redistributive impacts and can be used to fight urban poverty in
Brazil. Among the MAs studied, São Paulo presented the highest average rent,
independently of the characteristics of the properties. The importance of the present
study resides in trying to evaluate the impact of the governmental urban policies
through regression analysis, what would allow policy makers to obtain more detailed
information on the nature of housing demand – regarding the consumers’ preferences
for the different attributes of the house and levels of provision of urban services – as
well as on the capacity of cost-recovery, and the social impacts of the different housing,
sanitation and urban development programs.
Morder Intelligence 2023: Brazilian Residential Real Estate Market – Growth, Trends, Covid-19 Impact and Forecasts (2023-2029)
Short Summary: The report focusses on the residential market, analyzing the major players on the construction market, studying Covid 19 impact and the increasing segmentation on the market. It projects that there will be overall strong and linear growth until 2028, with Ceará/Fortaleza leading the market.
Short Summary: The current OECD Report about the Economic Perspectives of Brazil focusses strongly on three variables, tied to three policy recommendations: Sustaining inclusive growth with further significant reforms, Stronger investment and productivity are key for future growth, Brazil can seize greater benefits from greater global and regional. While highlighting these as key targets of future growths, the report shows that Brazil is improving rapidly on all key economic figures, highlighting a low inflation, low interest rates and resuming economic growht.
Otto, Samira 2015: Real Estate Policy in Brazil and Some Comparisons with the United States, in: Papers of Center of International Development, Stanford
Short Summary: This paper belongs to a rather rare category: comparative analysis between the American and Brazilian real estate sector. While already somewhat aged (from 2015), it still contains valuable information that help understand the public aspect of the Brazilian Real Estate Market. Empirical observation suggests that economic development does not stem from historical determinism. Forces that operate in a market reflect institutional factors, and especially public policies. In 2009, the Brazilian government announced an ambitious program of housing development, “Programa Minha Casa, Minha Vida” (PMCMV), with social goals. The growth of
the housing market in recent years and its slowdown since 2014 has generated discussion about a
possible bubble scenario.
Petrini, Gabriel/Teixeira Lucas 2021: Macroeconomia imobiliária: notas para uma agenda de pesquisa, Instituto de Economia Unicamp
Short Summary: The purpose of this paper is to highlight some aspects of a new research agenda, here called “housing macroeconomics”.
This reseach agenda concerns the impacts, changes, and the real and financial macroeconomic consequences of the housing market, taking into account theoretical, empirical, and institutional elements. To achieve this goal, the paper discusses the institutional aspects related to housing finance; presents some empirical questions about the determinants of residential investment; and debates the topic of integrating the real and financial sides of theoretical models.
Short Summary: The News Paper Article sheds light on the modalities of property purchase in Brazil as well as some economic parameters. It also presents an exemplary upscale property in the rural regions of the state of Rio de Janeiro. The author of this webpage has been interviewed for this article.
Ronquim, Ademar Filho/Aldair, Ramos Rios 2014: Aquisição da Propriedade Imobiliária no Brasil por Estrangeiros, in: Revista de Direitos Sociais e Políticas Públicas (UNIFAFIBE)
Short Summary: This paper aims to present the conditions imposed on the foreigner for the acquisition of real estate property in Brazil. Considering the social changes and economic factors that have occurred in the last decades that have led to the growth of of urban and rural properties by foreigners in the country, it is being considered imperative to analyze the regulations determining the purchase of real estate in Brazil.
Short Summary: Despite its age (published in 2008) this case study provides several arguments and considerations that are still valid today and describe in detail the dynamics of real estate construction and in particular the economic viability in Brazilian metropolises, like Florianopolis, based on the internal return.
Short Summary: This annual paper of the São Paulo State Housing Syndicate (Sindicato da Habitação do Estado de São Paulo) provides each year and encompassing report about the economic dynamics and challenges in general, as well as the development of the housing and real estate market, specifically in São Paulo state.
Short Summary/Abstract: This analytical study has as objective to analyze how economic factors, for example the interest rate, Construction Cost Index, the speed of sales and the Growth Development Product, average income of the population and the economically active population, influence the market price of rents and sales of residential real estate in Porto Alegre/RS – one of the more affluent regions in Brazil with European style development and prosperity level. The real estate price it is related to his characteristics, and to economy of his country and, after a period of rise in the real estate market was verified that the real estates had gained an appreciation of real estate prices lower than the inflation. To this end, several variables can explain this phenomenon as price stability, the fall in interest rates and credit expansion. Through waste normality tests, we used the tests of Kolgomorov -Smirnov, Lilliefors and Shapiro – Wilk. To multicollinearity of the independent variables, was used factor inflation, or Variance Inflation Factor and for homoscedasticity we analyzed the constant variance. In addition, we had done a multiple linear regression analysis to associate the influence of macroeconomic factors. It is noteworthy that the appreciation/depreciation of real estates were influenced by the gradual increase of the National Construction Cost Index. Therefore, these factors contributed to the research aim could be achieved.
Tone, Beatriz Bezerra, 2015: São Paulo , século XXI: valorização imobiliária e dissolução urbana, Tese de Pós Graduação Faculdade de Urbanismo e Arquitetura, Universidade de São Paulo.
Short Summary: the post-graduate thesis, elaborated by Beatriz Bezerrra Tone, demonstrates in equal measure the advantages and drawbacks of the increased condominium building in Brazil´s largest city. While increasing the general market value and making real estate more accessible, it has also led to certain social exclusion effects. The author thus advocates a broader and more equilibrated urban development program
World Bank, 2012: World Bank Group Support to Public-Private Partnerships: Lessons from Experience in Client Countries, fy02–12
Short Summary: As the title suggests, the report highlights the ever-increasing role and importance of guarantees in PPP Financing. While traditional bank guarantees are increasingly rejected due to high capital costs, the report examines the use of alternative forms of guarantees like maintenance and performance bonds.
Cezar de Souza, Climaco/Hahn, Andreas 2015: Biomass Gasifiers: a sustainable and fair new future energy – originating in Brazil
Cezar de Souza, Climaco: Energias Solar mais Eólica, Etanol/biodiesel e Biomassa nos libertarão do petróleo e das hidro?
Short Summary: As the title implies, the analysis scrutinizes the current status quo of renewable energies in Brazil and follows the question whether photovoltaic and wind energies serve as sustainable substitutes to the traditional fossil energy carriers. It also provides a glimpse on new technologies and patents developed in the area.
Cezar de Souza, Climaco/Hahn, Andreas 2014: Solar Energy in Brazil – Opportunities in the Solar Energy Market
Short Summary: The text sheds light on the advantages of Brazil´s possible autarchy in terms of solar energy generation and the production of panels and equipment. It serves to promote Brazil as eminent site for solar energy.
Short Summary: Encompassing analysis of the Brazilian energy sector, including economic variables and political switch stands, based on the Ten Years Energy Expansion Plans. The article provides an overview of the market situation and the legislative process leading to a strengthening of the Brazilian solar, wind and biomass-sector.
Luomi, Mari: Sustainable Energy in Brazil: Reversing Past Achievements or Realizing Future Potential, in: The Oxford Institute for Energy Studies, August 2014.
Short Summary: An alternative and complementing evaluation of the Brazilian renewable energies status quo, focussing on Brazil´s advances and efforts in promoting eolic, solar and biomass energy. The author in evidence points a critical light on some failures and reversals, however hints to the fact that the Brazilian government remains strongly committed to renewable energy, by putting into reality a growing number of auctions, granting fiscal incentives etc. She concluded the analysis with Policy Recommendations that take into account the heightened demand for energy in Brazil in the years to come.
Tolmasquim, Mauricio: Energia Renovável: Hidráulica, Biomassa, Eólica, Solar, Oceanica; EPE – Empresa de Pesquisa Energética 2016.
Short Summary: The purpose of this excellent book is to give a glimpse on Brazil´s usage of alternative energies (hydraulic, biomass, solar, wind), embedded in an international scenario of strengthening sustainable energies. It evaluates how well Brazil managed to cope so far with the demands of these energies and which challenges still lay ahead.
Websites and Databanks
BNDES – Banco Nacional de Desenvolvimento (National Development Bank): The Brazilian Development Bank (BNDES) is the main financing agent for development in Brazil. Since its foundation, in 1952, the BNDES has played a fundamental role in stimulating the expansion of industry and infrastructure in the country. Over the course of the Bank’s history, its operations have evolved in accordance with the Brazilian socio-economic challenges, and now they include support for exports, technological innovation, sustainable socio-environmental development and the modernization of public administration. The Bank offers several financial support mechanisms to Brazilian companies of all sizes as well as public administration entities, enabling investments in all economic sectors. In any supported undertaking, from the analysis phase up to the monitoring, the BNDES emphasizes three factors it considers strategic: innovation, local development and socio-environmental development.
CNC – Confederação Nacional do Comércio de Bens, Serviços e Turismo (The National Confederation of Commerce, Services and Tourism): It is a trade union organization reuniting several federal and regional union councils, providing ample information about the labour market and regularly publishing ample information about economic growth, the labour market as well as educational and cultural developments in Brazil.
CRECI – Conselho Nacional de Corretores de Imóveis (National Realtor´s Council): The CRECI is the umbrella organization of Brazilian realtors, representing their interests and at the same time providing a regulatory quase-legislative framework which is binding for the realtor´s profession. Each state has its legal representation, as for example the CRECISP.
FABESP – is a public institution for the promotion of academic research linked to the Secretariat of Economic Development, Science, Technology and Innovation of the government of the state of São Paulo. It is in many ways considered a national reference. It was inaugurated back 1962 and is maintained by endowments by the State government which are guaranteed as a fixed percentage of the State’s tax, besides the income generated by the financial revenues of its own assets.
FGV – Fundação Getulio Vargas: The FGV is a Brazilian higher education institution founded on December 20, 1944. FGV produces a large amount of academic research. The subjects cover macro and micro-economics, finance, business, decision-making, law, health, welfare, poverty and unemployment, pollution, and sustainable development. The foundation also maintains research programs in the fields of History, Social Sciences, Education, Justice, Citizenship, and Politics. FGV also executes projects at the request of the public sector, private enterprise and international agencies such as the World Bank and the Inter-American Development Bank (IDB). One of the main economic variables published by the FGV is the IPCA (Índice Nacional de Preços ao Consumidor – Amplo), the National Consumer Price Index – one of the two Inflation Indicators in Brazil. The updated inflation values (IPCA) can be verified here: http://www.calculador.com.br/tabela/indice/IPCA
IBAPE – Instituto Brasileiro de Avaliações e Perícias de Engenharia.The Brazilian Institute of Engineering Assessments and Expertise is formed by engineers of different modalities, architects and agronomists who work in the areas of engineering assessments and expertise. It is an association of professionals who strive for quality and technique in the development of evaluation activities and engineering expertise. Its objective is to disseminate information and technical advances, defend professional and moral interests of the class, promote basic and advanced training courses and organize seminars for the purpose of fellowship, exchange and recycling. It has several regional branches in every Brazilian state.
IBGE – Instituto Brasileiro de Geografia e Estatística: The Brazilian Institute of Geography and Statistics or IBGE is the agency responsible for official collection of statistical, geographic, cartographic, geodetic and environmental information in Brazil. IBGE performs a decennial national census; questionnaires account for information such as age, household income, literacy, education, occupation and hygiene levels. It is the largest statistical instutition in Brazil.
INCRA – Instituto Nacional de Colonização e Reforma Agrária (National Institute for Colonization and Agrarian Reform): The INCRA, with seat in Brasilia (Federal District), is a Brazilian autonomous regulatory agency, responsible for land reforms and agrarian administration. Its objective is to implement models compatible with the potentialities and biomes of each region of the country and to foster the spatial integration of projects. Another important task is the implementation of the existing environmental guidelines, the recovery of the infrastructure and the sustainable development of the more than eight thousand settlements in the country.
IPEA – Institutio de Pesquisa Econômica Aplicada (Institute for Applied Economic Research): The IPEA is a Brazilian government-led research organization dedicated to generation of macroeconomical, sectorial and thematic studies in order to base government planning and policy making. It was founded in 1964 and provides ample information about Brazil´s macroeconomic state. Connected to the IPEA is the IPEADatabank with access to macroeconomic, regional and social data. It is the largest databank in Brazil. See Literature Brazil.
The glossary section contains the definition of frequently used terms and specifically acronyms in relation to real estate and agriculture. Also, in case of doubt we encourage our clients to contact us directly. The glossary, for the time being, will be structured in an alphabetical way:
APA – The Área de Proteção Ambiental (Environmental Protection Area) is defined as an extensive natural area, with a certain level of human occupation, which guarantees the protection and conservation of biotic, abiotic, aesthetic or cultural attributes that are important for the quality of life of the population in a given region. In other words, the APA values the conservation of nature with the sustainable use of natural resources, where certain activities are allowed as long as they do not pose a threat to renewable environmental resources and ecological processes. Further Information: https://oeco.org.br/dicionario-ambiental/29203-o-que-e-uma-area-de-protecao-ambiental/
APP – Área de Preservação Permanente (Permanent Preservation Area) denotes a protected area, covered or not by native vegetation, with the environmental function of preserving water resources, the landscape, geological stability and biodiversity, facilitating the gene flow of fauna and flora, protecting the soil and ensuring the well-being of human populations. It is part of the Código Florestal: https://www.embrapa.br/codigo-florestal/entenda-o-codigo-florestal/area-de-preservacao-permanente
ART – Anotação de Responsabilidade Técnica (Anotation of Technical Responsibility) is a document serving as seal of approval for engineering and construction works, especially in relation to commercial real estate (hotels, pousadas) that need to meet minimum standards. Further Information in Portuguese: https://www.confea.org.br/servicos-prestados/anotacao-de-responsabilidade-tecnica-art
CCIR – Certificado de Cadastro de Imóvel Rural (Inscription Certificate of the Rural Property). The Rural Property Registration Certificate (CCIR) is the document issued by Incra (National Institute for Colonization and Agrarian Reform) that proves the regularity of the registration of the rural property. The certificate contains information about the holder, the area, the location, the exploitation and the land classification of the rural property. The data are declaratory and exclusively cadastral, not legitimizing the right to dominion or possession. The CCIR is indispensable to legalize the transfer, lease, mortgage, dismemberment, remembrance and sharing of any rural property. It is also essential for granting agricultural credit as it is required by banks and financial agents. Further information please see here: http://www.cadastrorural.gov.br/servicos/ccir-certificado-de-cadastro-do-imovel-rural
CPF – Cadastro de Pessoa Fisica. It is a Natural Persons Registry and serves as an individual taxpayer registry. It was inaugurated in 1965. This number is attributed by the Finance Ministry to Brazilians and residents who, directly or indirectly, pay taxes in Brazil. It’s an 11-digit number in the format 000.000.000-00, where the last 2 numbers are check digits, generated through an arithmetic operation on the first nine digits.
CNPJ – Cadastro Nacional de Pessoas Jurídicas. The CNPJ is a tax based and compulsory registry number of companies, partnerships, foundations, investment funds, and well as other juridical entities, which was originally created by the Brazilian finance ministry (Receita Federal do Brasil, “RFB”). At the present time, all companies are automatically enrolled in the system upon incorporation. The system is composed of a fourteen-digit number, consisting of an eight-digit unique identifier, a four-digit branch identifier, and two check digits. The CNPJ has turned into the most significant number for commercial transactions between companies due to its universality and official status. The RFB maintains a publicly accessible website where any CNPJ number can be checked; thus, for many purposes, it is now possible to discard all other non-essential information about a company and replace it with the CNPJ number. Additional and Official Information: https://www.gov.br/receitafederal/pt-br/servicos/cadastro/cnpj
Escritura Publica – Public Deed is any type of document prepared by a Notary Public whose purpose is to legally formalize the parties’ will. This is the main task of the Notary, whose instrument is considered authentic and true for all purposes. It is to be differentiated from the so-called “Posse“. The deed is a document of public faith that marks a sale transaction. It can be done for cars or any other object, but in real estate negotiation it is mandatory to prove that the good was sold and, consequently, changed owners. Further reading (article by lawyer Charles Torres): https://www.linkedin.com/pulse/purchase-property-brazil-brief-considerations-grazziotin-torres/
Habite-Se: The habite-se is the administrative act, as well as a document, emanating from a competent authority that authorizes the beginning of the effective use of constructions or buildings intended for housing. It is a document that proves that an enterprise or property was built according to the requirements (local legislation, especially the Municipal Works Code) established by the city for the approval of projects. The document is issued by the townhall (prefeitura) of the city where the enterprise or property is located. While the beginning of the work is authorized by a construction license, the owner attests to its completion according to the license initially given.
Originally, the term referred only to residential buildings, demonstrating that the place could be inhabited as a residence, due to the Latin origin of the term (habitare, which means to inhabit, to live, to reside). For further information, please see here: https://revista.zapimoveis.com.br/habite-se/
IGP-M – Índice Geral de Preços do Mercado (General Price Index): It is one of the primary inflation markers in Brazil, reflecting the variation of prices during 1 year and published by the FGV (Fundação Getulio Vargas). It is also frequently being used as reference frame for price adjustment in the real estate market. See also here: https://www.investing.com/economic-calendar/brazilian-igp-m-inflation-index-1561
INCC – Índice Nacional de Custo de Construção (National Index of Construction Costs). Responsible for measuring the variation in the costs of inputs used in housing and civil construction. It is published by the Fundação Gétulio Vargas and become of increasing importance, also as a partial inflation determinant in Brazil. From an international comparative perspective it can be stated that the INCC is far below the global average, especially compared with European countries.
IPHAN – Instituto do Patrimônio Histórico e Artístico Nacional (National Institute of the historical and artistic Heritage): It is a heritage register of the federal Brazilian government. Its main objective is the preservation of buildings, monuments, structures, objects and sites, as well as the register and safeguard of intangible cultural heritage deemed of historic or cultural importance to the country.
IPHAN currently has 1,047 sites in operation, which include historic buildings, city centers, and landscapes. It additionally lists a growing number of intangible cultural heritage entities.
Further Information: http://portal.iphan.gov.br/
IPTU – Imposto Predial e Territorial Urbano (Urban Property Tax), as opposed to the ITR, this tax applies explicitely to urban properties. It is a tax of municipal competence that falls on the taxpayer who owns a property in an urban area. However, this is not the only generating event of IPTU, which can also be applied to the utilization of the domain of the property (usufructuary) or the ownership of the property. Please see here for further details: https://economia.uol.com.br/noticias/redacao/2020/02/03/iptu-imposto-duvidas.htm
ITBI – Imposto de Transmissão de Bens Imóveis (Real Estate Transference Tax). The Real Estate Transfer Tax is a municipal tax that must be paid when a real estate transfer occurs. Thus, the purchase and sale process will only be made official after it has been settled, and, without confirmation of payment of the tax, the property cannot be transferred and the documentation is not released. Provided for in the Federal Constitution, this tax is charged only when the transfer of possession of a property involving living persons occurs. When there is succession through death or donation, the ITCMD (Transmission Tax “Cause Mortis” and Donation) is instead charged. The ITBI, depending on the municipality, ranges between 2 and 3 % of the sales value (valor venal). The ITBI is exclusive responsilibity of the buyer/purchaser of the property. Further reading: https://www.angloinfo.com/how-to/brazil/money/brazilian-taxes/further-taxation
ITCMD – Imposto Transmissão Causa Mortis e Doação (Inheritance Transmission Tax). This tax qualifies as state tax on transfers of goods on death-related inventories or donations. ITCMD is usually payable on real estate or lump sums of cash. Each single state may set a different rate; for example in the State of São Paulo the inheritance tax payable is collected at a four percent rate.
ITR – Imposto sobre a Propriedade Territorial Rural (Rural Territorial Tax). The application of the Rural Territorial Tax occurs when there is a useful domain or ownership of the property, located outside the urban perimeter of the municipality. Taxpayers can be the owner of the property (both individuals and legal entities), the holder of its useful domain or its owner in any capacity. The rate varies with the area of the property and its degree and magnitude of use. The bigger the property, the higher the tax to be paid. Productive properties, operated with agricultural or livestock activities, pay less tax (see tax exemptions and reductions on the income tax for rural producers). In the calculation of the tax amount, areas of environmental protection are excluded. For further information, please see here: http://www.cadastrorural.gov.br/cartilha-de-orientacoes/copy_of_itr-imposto-sobre-a-propriedade-territorial-rural
Laudemio – Laudêmio is an amount charged on transfers of real estate located in private or public areas under the leasing regime. The incident rate varies from 2.5% to 5% of the total transaction value. The right to laudêmio began to emerge even when Brazil was a colony of Portugal. This is because all properties belonged to the Portuguese Crown.
Further Reading: https://pt.wikipedia.org/wiki/Laud%C3%AAmio
There is also a singular case of “urban Laudemio” in Brazil, only aplicable to the city of Petropolis, where citizens have to pay 2,5 % laudemio tax as royal tax. The Laudemio is bound to be abolished in the near future.: https://learningenglish.voanews.com/a/brazilians-dislike-tax-paid-to-royal-descendants/3807466.html
Matricula – The Matricula (Deed) is the document that legally identifies the real estate. Just as individuals have a birth certificate issued by the Civil Registry Office, the Property Registration Certificate is what legally identifies the existence of the property before society. It is thus closely tied to the Escritura Publica and the RGI.
Plano Diretor – Master Plan. The Strategic Master Plan is a municipal law that guides the growth and urban development of the entire municipality. Prepared with the participation of society, it is a social pact that defines the urban planning instruments to reorganize the city’s spaces and guarantee the improvement of the population’s quality of life. Usually the Strategic Master Plan can be accessed at the municipal townhalls (prefeituras).
Posse – Posse means, in principle, “ownership” and refers to the person who, according to article 1196 of the Civil Code, actually has the exercise, full or not, of any of the powers inherent to the property, that is, the usufruct, disposition or claim. It is part of the costumary law in Brazil and has been codified in the 20th century. It can be transformed, by legal procedure, into a public deed/escritura. Expressed differently, Possession document can be deed of property built by the city that you generally have possession until the discharge, it can be a deed of real estate built many decades ago in areas protected by the government where there is no real estate registration as in cases of some historic cities (Petrópolis-RJ) or it may just be a document that proves the purchase and sale of possession of invaded, abandoned areas. It depends on each situation. Currently the declaration and possession serves to be able to connect, light, water, negotiate unpaid IPTU of abandoned or deceased invaded area. For the purpose of adverse possession, it is currently not useful, being preferable the Notarial Deed in general with a high cost but the best document for those who have property in possession.
Reserva Legal – The Reserva Legal (Legal Reserve) denominates a protection area that cannot be built upon or commercially used. According to Brazilian law (Law 12.651/2012, an updated version based on previous provisions), every rural property must maintain an area with native vegetation which in english-speaking countries is known as Legal Reserve. It is an area located within a rural property or possession, with the function of ensuring the sustainable economic use of the rural property’s natural resources, assisting the conservation and rehabilitation of ecological processes and promoting the conservation of biodiversity, as well as as the shelter and protection of wild fauna and native flora. Its minimum dimension in terms of percentage relative to the area of the property is dependent on its location. The percentages vary, depending whether it is a forest region or for example rural/agricultural land (80 % versus 20 %)
For additional information see here: https://www.embrapa.br/codigo-florestal/area-de-reserva-legal-arl
RGI – Registro Geral de Imoveis (General Property Register). RGI is the acronym of Registro Geral de Imóveis, a document that presents all information about a certain property, such as conditions or encumbrances, if there is outstanding debt or any other type of impediment or irregularity that may exist. For a property to be sold or purchased, it must have its RGI, depicting the entire situation of the property (house, apartment, office, land and etc.). In almost all the main Brazilian cities and municipalities, there is a General Property Registry Office, where all properties in that region are registered, that have been sold, that are for sale, or that are undergoing seizure. Official Site: https://www.registrodeimoveis.org.br/
RI – Registro de Incorporação (Incorporation Index/Register). This document is closely tight to the above defined RGI as well as the escritura publica (public deed). It is usually emitted and presented by incorporaters together with the regionally responsible notary office and granting the right to commercialize the property.
SAC – Sistema de Amortização Constante (Constant Amortization System). This system allows fixed installments of real estate financing to be reduced over time. Thus, the idea is that the first installment is the highest, while the last installment would be the lowest of all, but the debt amortization remains the same. It is noteworthy, for our international clients, that financing in Brazil usually is only obtainable to local/domestic residents. The SAC can be relevant for proprietors of properties or landplots that sell subdivisions (partial landplots, houses etc.) at financing basis to Brazilian nationals.
TIR – Interna de Retorno. The TIR is widely used in Brazil to measure the internal rate of return. It is thus correspondent to the international IRR (Internal Rate of Return). It is a hypothetical discount rate that, when applied to a cash flow, makes the values of expenses, brought to present value, equal to the values of investment returns, also brought to present value. It is one of the main parameters when judging the commercial viability of residential and commercial properties in Brazil.
TR – Taxa Referencial (Reference Rate) – It s an abbreviation for “Reference Rate” – a comparative number created to serve as a reference for adjustments in financial transactions, such as, for example, real estate financing. It is published monthly by the Central Bank, according to the average remuneration of bank investments. Further Information: https://www.ceicdata.com/en/brazil/lending-rate-central-bank-of-brazil/reference-rate-tr-monthly-average-per-month
Urban Zoning (Zoneamento Urbano) – Federal Law No. 10257/2001, known as the “City Statute”, states that every municipality with more than 20 thousand inhabitants must have a master plan (Plano Diretor). In it, it is necessary to divide the city into several zones and determine how they will be occupied: residential, industrial, commercial or services. This planning is called “urban zoning”. Further Information: https://www.mma.gov.br/informma/item/8188-outros-tipos-de-zoneamento.html
ZPE – Zonas de Processamento de Exportação (Export Processing Zone) are commercial areas, usually Port areas in Brazil, representing an industrial district where companies located in it operate with tax exemptions or suspensions, free exchange (they are not obliged to convert the currency obtained in exports into Brazilian Currency) and enjoy simplified administrative procedures. Currently, there are 24 Export Processing Zones authorized by the Federal Government in Brazil, which are at different pre-operational stages. One example that is currently on offer: https://real-estate-brazil.com/estate/export-processing-zone-bahia/
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