Lopes – Brazil’s largest estate agency group – has recently stated that it will be gearing up its presence in the second hand home sales market, a segment which the company previously viewed as ‘marginal’ according to vice-president Marcello Leone in the Exame magazine.

As organisations within the real estate sector have been seen reanalysing their future strategies in what is being widely perceived as period of market evolution, Leone believes that resale property will enable the group to bring equilibrium into its activities due to an expected fluctuation in the demand for new units.  Leone commented to Exame that used property forms 22 percent of the group’s operations, which they aim to grow to 50 percent in the long term stating: ‘there is a clear opportunity here over the next few years.’

Lopes have bought out 12 Brazilian estate agency chains in the last 12 months and are looking to continue to expand in the South and South East as well as regions where their current presence is low such as in the North East and the Centre West.  In the second quarter of 2011, the group had an operational cash flow level of $R 48.2 million – up from R$ 17 million from the first quarter of 2011.

Despite Secovi-SP recently divulging that the level of residential sales in the São Paulo region fell by 28.6 percent between July 2010 and July 2011, Leone affirmed that the group has not seen a drop in demand levels.  He stated to Exame: ‘when there is an economic shock, the real estate sector always feels it – but, despite all the turbulence being witnessed in Europe and the USA, the macro-prudential measures adopted by the Brazilian government since the end of 2010 has meant that the effects have been minimal.’

Ruban Selvanayagam www.brazilinvestmentguide.com