According to newspaper Hoje Em Dia, the real estate development industry cut 16,000 jobs in the city of Belo Horizonte, Brazil’s third largest metropolis, between September and October. The number is four times greater than the one recorded between August and September, when four thousand jobs were eliminated. Although the current unemployment figures in Brazil are at record lows (close to 6%), recent activity indicators have pointed to a sharp slowdown for the sector.
The amount of property launches in September was 72.8% lower than the same month of 2010, according to study by IPEAD insitute. Sales of new homes fell 42.2% in the same comparison. There were 188 properties sold in September this year, against 325 in the same month of 2010.

The PED technical coordinator, Gabrielle Selan Cicarelli, said the reduction of employment in construction is a reflection of the decline of investments because of the uncertainty generated by the international crisis and the cloudy economic outlook.

Our comment: The big question is whether the slowdown stems from the international crisis or because of the current sector’s economic fundamentals (supply x demand), considering the current real estate bubble in Brazil.
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