The document discusses the partnership between Fipe and ZAP to build real estate market indexes for Brazil. It provides background on both companies, with Fipe being a research institute and ZAP an online classifieds portal. Their partnership leverages Fipe's real estate data expertise and ZAP's large property listings database to create the first national home price and rental indexes for Brazil. The indexes and other products from the FipeZAP collaboration have helped analyze price trends and provide transparency to the Brazilian real estate market.
4. Launched
2007
ZAP TIMELINE
140x more listings
1000x more audience
than the newspapers
2010
100% owned by Grupo Globo –
The largest media group in Latin
America
70% of TV audience market share
2012
5. Approximately
400 employees
27 offices in all of Brazil
TODAY
ZAP TIMELINE
Sponsors Formula 1
Top of Mind in classified ads
40.1% revenue growth
2015
ZAP 50% larger than the competition
Acquisitions:
2014
6. ZAP IN NUMBERS2015 VS 2014
Source: Internal database
VISITS
116mi
36%
SEARCHES LISTINGS
AD IMPRESSIONS LEADS TRANSACTIONS
412Mi
76%
1.1Mi
139%
13Bi
180%
8.4Mi
61%
169.7K
61%
2015
8. Indexes
Expertise
Indicators
F I PE
INSTITUTE OF ECONOMIC
RESEARCH FOUNDATION
Consumers
Public Sector
Real Estate Market
Academic Programs
Ad-Hoc Projects
Researches
Economic and Financial Indicators
Indicator for Developers
Indicator for Auto Market
Salary-meter
Indicator for Job Market
9. WHY DOES THE PAS T M ATTE R ?
1890 1910 1930 1950 1970 1990 2010
+ 60
+ 200
+ 80
+ 100
+ 120
+ 140
+ 160
+ 180
HOME PRICES IN THE USA
In 2005, the Nobel Prize Winner Robert
Shiller foresaw and demonstrated the
evolution of real estate prices in USA
’
10. HOW
ABOUT
BRAZIL?
Necessity to create an
index of historical pricing
High volatility in the
political and economic
environments
Historical data is rare
12. Largest economy in
South America
and Latin American
region (40% share)
USD 11.38k
in 2014
GDP per capita:
GDP:
USD 2.39
trillion in 2014
Population:
205 million
2nd largest economy
in the Western Hemisphere
Size
3,286,488
square miles
World’s 7th
largest economy
Total homes
50 million
BRAZIL IN
NUMBERS
13. 1964
Beginning of
the military
dictatorship
Until 1964
Market totally
deregulated
1967
New Currency:
Cruzeiro
1964
Establishment of the
Housing Finance
System
1970
New Currency:
Cruzeiro Novo
1966
Creation of the
National Housing
Bank
1964 1970MAIN FACTS
IN BRAZIL
Dictatorship Regime
IN THE REAL
ESTATE MARKET
Time for structuring
14. 1975
Expansion of
the middle class
+ Consumption
= inflation
Low resources
for the real
estate financing
1976
Impact of the
International
oil crisis
1971 1976MAIN FACTS
IN BRAZIL
Economic Growth
IN THE REAL
ESTATE MARKET
Housing Shortage Accumulated Units(Total)
6.000.000
5.000.000
4.000.000
3.000.000
2.000.000
1.000.000
0 1970 1974 19781972 1976 1980
Evolution of the number
of financed homes (Units)
15. 1980
Accumulated
inflation
(110% a.a in 1980)
Banks restrict
new credits
1977 1982MAIN FACTS
IN BRAZIL
End of the
economic miracle
IN THE REAL
ESTATE MARKET
Delinquency as high
as a skyscraper
GPD Evolution
1950 to 1987
15
13
11
9
7
5
3
1
-1
-3
-5
1951 1957 1963 1969 1975 1981 1987
Economic
Miracle
“Lost
Decade”
Real Estate
Developers take on
the role of financiers
16. 1984
Social
movement
wanting
democracy
Big unemployment rate
1983 1990MAIN FACTS
IN BRAZIL
End of the dictatorship
IN THE REAL
ESTATE MARKET
Delinquency still growing
Stratospheric
delinquency
Delinquency SFH rate evolution compared to
total financings (1980 – 1984)
20,0%
10,0%
0,0%
60,0%
40,0%
30,0%
50,0%
1980 1981 1982 1983 1984
54,6%
Total
1985
GDP growth
reaches 7.8%
1986
New president
and new
currency:
Cruzado
1989
New currency:
Cruzado Novo
Accumulated
inflation:
1.035%
1990
The first
president
elected
by the
brazilians
New loan offers
slowed down
17. 1992
President
Collor was
impeached
Blockage of
financial assets
and 60% of
savings
accounts
1994
New currency: Real
The most successful
economic plan
until nowadays
The lowest amount
of financed houses
since 1965
End of high inflation
4th World Soccer
Cup Title
1991 1995MAIN FACTS
IN BRAZIL
A new chance for Brazil
IN THE REAL
ESTATE MARKET
Stagnation
18. 1996
Monitary Policy
Committee was
established
1997
Establishment of
the Real Estate
Financing
System
1999
Implementation of inflation
targeting in 1999 by
Brazilian Central Bank
2000
300 times more
houses financed
compared to 1994
1996 2000MAIN FACTS
IN BRAZIL
Inflation under control
IN THE REAL
ESTATE MARKET
New housing policy
19. 2002
Record growth of formal jobs
Launched the largest income
distribution program: Bolsa Família
2001 2005MAIN FACTS
IN BRAZIL
Rise of the family
consumption
IN THE REAL
ESTATE MARKET
A new era in real
estate financing
2001
IPO of the 14 main
construction companies
2002
45.6 thousand units launched in
the city of São Paulo - historical
peak for launch and sale
Reduction of interest rates
Increase in financing terms
and percentages
New classified portals on the market
20. 2007
Brazilian GDP grows 6% yoy,
best performance since 1986
2006 2011MAIN FACTS
IN BRAZIL
Brazil takes off
IN THE REAL
ESTATE MARKET
Real estate boom
2007
Creation of
ZAP portal
2009
Minha Casa
Minha Vida:
the largest
federal housing
program for low
income families
2010
Economy grows 7,5%
2010
Number of
financed
houses doubled
2011
Launch of
FipeZAP index
21. 2012
Economy has a
weak performance
Only 0,9% growth
2012 2015MAIN FACTS
IN BRAZIL
Fall, recession
and pessimism
IN THE REAL
ESTATE MARKET
Cooling off period
Decline of home prices
Increase in interest rate in leases
Record number of cancellations up
to 41% over total sales of new homes
Huge offer of new properties
Construction companies deep in
debt
2014
Dilma Rousseff is
reelected president
2015
Decrease of loan-to-value
for pre-owned property
financing from 80% to 50%
2015
GDP estimated
by The International
Monetary Fund:
recession of -3,8%
24. 80.60%
64.50%
64.30%
62.10%
59.90%
43.80%
35.20%
23.20%
22.00%
18.90%
14.50%
9.80%
9.70%
7.00%
3.80%
1.50%
UK - 2013
Canada - 2011
Portugal 2013
USA - 2013
Spain - 2013
France - 2013
Germany - 2013
Italy - 2013
South Africa - 2013
Chile - 2012
China - 2012
Mexico - 2013
Brazil - 2014-11
India - 2011
Russia - 2013
Argentina - 2012
(%) Mortgage Loans as of GDP
Source: Abecip
Growth of real estate prices
in Brazil was very fast for
international standards
The current economic scenario
and the enormous volatility seen
over the last 30 years create
additional short-term risks
Over the long term, there
doesn’t seem to be any
abnormal behavior
Potential for development and
expansion of real estate credit
LESSONS LEARNED
25. PARTNERSHIP
FIPEZAP
TWO FORCES
COMBINED TO PROVIDE
KNOWLEDGE
Calculated based on
property ads published
on ZAP portal
Average price per m² of
ready to move properties
in 20 Brazilian cities
First indicator with a national
scope that monitors home
prices for sale and rental in
Brazil
Real estate market statistics
by area and type of property
WITH FIPE
27. FIPEZAP INDEXES FOR
S ALE AND R E NTAL
Main indexes of the real
estate market that monitor
the evolution of home
prices for sale and rental
28. X-RAY RESEARCH
SURVEY WITH OVER
2.000 RESPONDENTS
SEEKS TO IDENTIFY Buyer profile
Purchase objectives
Discounts praticed
Price expectation
29. B U Y O R R E NT
CALCULATOR
Widget that allows users to
compare purchasing options
from their economic/finance
point of view
30. FIPEZAP
BULLETIN
Quarterly publication with an
economic analysis focused on
the real estate market outlook
It addresses macroeconomic
topics, indicators and sector
specific perspectives