Sao Paulo

Credit is a problem in Brazil. Factors like: lack of capitals; a law which overprotectes debtors and underprotects creditors; high interest rates, among others, have been preventing a growth of credit in Brazil.

This week, the total volume of credits in Brazil reached R$ 1 trillion (about US$ 600 billion), the highest volume in the History of the country; that volume amounts to 36% of GNP, also the highest figure ever.

The graph below shows the total credit as percentage of GNP over the past few years.

It is noticeable that credit has been growing very fast. The reasons are the opposite of the factors mentioned in the top paragraph: there is an abundance of capitals (foreign investors are bringing large amounts of money into the country); laws are being passed to safeguard the creditors (for example, specific laws have been giving protection to banks which loan money for purchase of vehicles and real estate); interest rates have been falling.

And, as São Paulo has the biggest economy in Brazil, a good part of that credit was directed to people in the State. And the consequences are visible: the market for cars is hot, and the traffic jams are getting worse; real estate prices are reaching new record levels; the poorer classes (which never had credit before) are buying stuff like computers, TVs and the like, making their lives happier and increasing the popularity of President Lula in the process.

São Paulo is one of the cities in Brazil with the highest cost of houses, apartments, flats and real estate in general. This is a consequence of the quick growth (which makes good loots of free terrain rarer and rarer), the relatively high average income (most Brazilian millionaires live in São Paulo) and, more recently, the increase in credit (which benefits mostly the middle class).

But, how do prices in São Paulo compare to those in other big and expensive cities, such as London, Tokyo or New York?

To try to answer that question, we present below some of the luxury apartments which are currently being sold in the city.

On the Park Towers; the towers were called Hyde Park and Central Park. Situated right beside Parque Burle Marx, in Morumbi. Each tower has 25 floors, with one apartment per floor, and a duplex penthouse.

Indoor and outdoor swimming pools, with warmed water. Sauna, spa, lounge with library. Balcony with 78 sq.m. overlooking Parque Burle Marx. Ready for moving in (since Oct. 2007).

Area: from 607 to 1034 sq.m.
Price: from R$ 3 million to R$ 5 million.

Adolpho Carlos Lindenberg apartments, in Morumbi.

Only twelve apartments, each with 1,233 sq.m., all with a view to a reserve of the Atlantic Forest.

Each unit has six suites. The master suite has an area of 237 sq.m., two closets, two bathrooms with warmed floor and sauna.

Each apartment has twelve parking slots. Each apartment has a small private cinema, and a balcony with 85 sq. m.

Ready to move in: January 2008.
Price: R$ 11 million.

Particolare apartments, in Campo Belo.

The design allows the owners to adapt the interior space to their own needs and tastes. Windows of 2,35 meters, allowing more luminosity.

Area of apartments: from 385 to 674 sq.m. Three swimming pools, one tennis court, play grounds, lan house and even a spa center ran by the Brazilian branch of French company L’Occitane.

Move in: October 2009.
Price: from R$ 1.6 to R$ 3.7 million.

Parque Cidade Jardim, situated by Marginal Pinheiros.

Designed to be a complex of shoppings, offices and apartments, Parque Cidade Jardim will implement the concept of cocoon: residents may have everything they need within the condo.

In a first stage, due May 2008, there will be four residential towers and a shopping center. Further on, commercial towers and more residential towers will be built.

Area: from 237 to 1,807 sq.m.

Price: between R$ 2 and R$ 18 million. Rumors go that the penthouses of this condo will be the most expensive apartments in São Paulo.