SAO PAULO, May 30 (Reuters) - New home sales in Brazil jumped over 20 percent in the first quarter from the same period last year, a study from an industry group indicated Wednesday, as the country’s real estate market picks up steam with the country slowly emerging from a downturn.
New home sales climbed 22.3 percent to 24,712 units in the first quarter, up from 20,209 units last year, according to Brazil’s Cbic construction industry body. Launches of new projects by Brazil’s homebuilders, however, dropped some 30.7 percent from the same period a year ago.
After a brutal recession that caused a number of homebuilders to go bankrupt in Brazil, the market is heating up. But many homebuilders still need to get rid of units that did not find buyers during the crisis, meaning that some builders are not in a position to aggressively launch new projects.
The key market of Sao Paulo also saw a drop in launches due to a number of bureaucratic issues with the city government.
Cyrela Brazil Realty SA and MRV Engenharia e Participações SA, Latin America’s two largest homebuilder, are both based in Brazil. (Reporting by Gabriela Mello; Writing by Gram Slattery; editing by Jonathan Oatis)