Brazilian real estate developer Even offered on Sunday (18) over a thousand residential and commercial properties with discounts of up to 36%, as we have reported a few days ago. This is the company’s second promotional campaign in three months.
Another developer, Rossi, is also elaborating promotional campaign with 12 of its projects this month. The discounts, the company said, are of about R$ 150,000 off. Last Saturday, Camargo Corrêa also offered up to R$150,000 off housing purchases made at an event held in São Paulo.
Most real estate developers are hurting from a cash flow perspective, so it seems that accelerating sales would alleviate their pain. Many specialists in this market are also quick to state that potential buyers should not expect that these discounts will reduce the market’s property prices as demand for real estate and credit supply persist. But others say that in neighborhoods with more unit deliveries these rebates could trigger a downward movement of prices.
Other discounts, according to Valor Economico…
Trisul: 3% to 15% off on cash purchases on 270 units in Sao Paulo. “In three years, several homes had appreciation of 80% to 100%. Hence, this small discount will not hurt our margins,” says company Director Ricardo Stella. About 30% of 270 units were sold in the first month of the campaign that began on February 8.
Even: up to 37% off in 1,000 units. According to the company’s CFO Dany Muszkat, the impact of these discounts on Even’s gross margin will be “small.”
EzTec: average discounts of 8%. In one of the units, the rebate was R$ 170,000.
MRV: discounts of 3% to 4% of the property value… “margins will not be impacted”, says the MRV’s president, Rubens Menin.
Camargo Corrêa (CCDI): up to R$ 150,000 in discount.
We could be wrong, but it seems like a correction is starting to take place…