Credit Suisse has issued its meeting minutes on the annual real estate conference in Sao Paulo (thanks to Housing Market BR), where a gathering to discuss the sector’s outlook and home building funding took place. The meeting was arranged by the Brazilian Association of Real Estate Loans and Savings Companies (ABECIP), so the opinion here might be biased to the optimistic side … highlights below:
1. Opportunities exist but so do risks;
2. Seeing the cup as half full (“let’s be optimistic!”)
3. There is no bubble in the housing market
4. Market deceleration is expected for next year
5. Funding: high growth with tough challenges
Credit Suisse’s veredict: “We think that home builders still have attractive growth potential; nevertheless we are keeping our eye on the short-term obstacles such as funding, demand, costs, and cash generation.”
Our comment: so they don’t see a bubble in the market, but they see deceleration for next year – it is somewhat contradictory. It seems to us that Credit Suisse is on the fence.
Full report can be downloaded here.