Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 07SAOPAULO910, Brazil's Real Estate Market Booming

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07SAOPAULO910.
Reference ID Created Released Classification Origin
07SAOPAULO910 2007-11-13 10:58 2011-07-11 00:00 UNCLASSIFIED Consulate Sao Paulo
VZCZCXRO4624
RR RUEHRG
DE RUEHSO #0910 3171058
ZNR UUUUU ZZH
R 131058Z NOV 07
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC 7668
INFO RUEHBR/AMEMBASSY BRASILIA 8786
RUEHRI/AMCONSUL RIO DE JANEIRO 8434
RUEHRG/AMCONSUL RECIFE 3875
RUEHAC/AMEMBASSY ASUNCION 3171
RUEHBU/AMEMBASSY BUENOS AIRES 2935
RUEHCV/AMEMBASSY CARACAS 0597
RUEHMN/AMEMBASSY MONTEVIDEO 2494
RUEHLP/AMEMBASSY LA PAZ 3557
RUEHSG/AMEMBASSY SANTIAGO 2198
RUCPDOC/USDOC WASHDC 2946
RUEATRS/DEPT OF TREASURY WASHDC
RUEHC/DEPT OF LABOR WASHDC
RUCPDOC/USDOC WASHDC 2947
UNCLAS SAO PAULO 000910 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR WHA/EPSC, WHA/BSC, EEB/OIA 
STATE PASS USTR FOR KATE SUCKWORTH 
TREASURY FOR JHOEK 
USDOC FOR 4332/ITA/MAC/WH/OLAC 
USDOC ALSO FOR 3134/USFCS/OIO 
 
E.O. 12958: N/A 
TAGS: BTIO EINV EFIN ECON BR
SUBJECT: Brazil's Real Estate Market Booming 
 
REF: Sao Paulo 0832 
 
1.  (U) In an October 23 meeting with Eli Horn, president and 
founder of Cyrela Brazil Realty, Ambassador Sobel discussed Brazil's 
booming real estate business.  Horn expects company sales in 2007 to 
reach USD 1.2 billion, compared with less than USD 200 million in 
2004.  Cyrela's stock is up 50 percent over the past 12 months, the 
strongest period in the company's history.  Horn noted that 60 
percent of Cyrela's shareholders are American.  Hedge funds in 
particular foresaw Brazil's real estate boom. 
 
2. (U) Cyrela is Brazil's largest developer of residential 
buildings.  Since taking the company public in 2005, Cyrela has 
expanded out of the cities of Sao Paulo and Rio de Janeiro and into 
twenty smaller cities across the country.  Whereas prior to 2005, 
Horn claims his company "never saw money," today it is paying cash 
for land.  According to Horn, Cyrela's strategy mirrors that of 
other real estate development companies: expand beyond the 
traditional geographic and demographic markets.  While the appetite 
among Sao Paulo and Rio de Janeiro's upper and upper-middle classes 
for luxury residences remains strong, the real boom is among the 
middle class and in smaller cities across the country.  Horn gave a 
recent example of a 400-unit building in the state of Espirito Santo 
that sold 90 percent of its units in less than a week. 
 
3. (U) During 2007, there has been one new building project 
announced daily in the city of Sao Paulo, which translates to 2000 
new units per month.  This intensity is double that of 2006, and now 
there are no more cranes available in the city; construction 
companies are rushing to import them from China.  In the first 
semester of 2007, the construction industry hired over 100,000 
workers nationally. 
 
4. (U) The real estate boom is directly correlated with the strong 
economy and the expanding credit market.  Real estate mortgages are 
up 74 percent over the past twelve months (reftel).  International 
banks such as HSBC, ABN Amro and Santander are leaders in the 
mortgage industry.  The thirty-year mortgages offered by Brazilian 
and international banks have altered the real estate market, making 
companies like Cyrela less dependent on the stability of the 
state-owned Caixa Economica Federal, the traditional mortgage 
lender.  U.S. investment banks have just begun to enter the mortgage 
market.  Goldman Sachs recently invested in Brazilian bank Daycoval, 
specializing in home mortgages.  Horn predicts that as soon as 
Brazil achieves investment grade - which analysts widely expect will 
occur over the course of 2008 - others will follow suit. (Comment: 
It is unclear as yet how the subprime mortgage crisis will affect 
this growth outlook.) 
 
5. (U) Horn was uncertain about how long the boom can go on.  He 
expressed fear that an internal or external crisis could destroy the 
market, but did not offer any specific predictions.  As a way to 
buffer itself from such a shock, Cyrela is keeping large cash 
reserves on hand.  Cyrela's current land holdings are sufficient to 
ensure five years of new projects.  Despite his personal hesitation, 
Horn noted that the general sentiment in the industry is that the 
honeymoon has just begun.  In addition, Horn praised President Lula 
as "the best president in terms of real estate that Brazil has ever 
had." 
 
6. (U) COMMENT: Most commentators believe that Brazil's real estate 
boom is just beginning, as are opportunities for international 
investors.  In addition to the mortgage market, recent IPOs for 
companies in construction and real estate development have sold as 
much as 70 percent of shares to international investors.  On the 
brokerage side, Century 21 and Coldwell Banker are in the initial 
steps of identifying local partners.  END COMMENT 
 
7. (U) This cable was cleared by Embassy Brasilia and approved by 
Ambassador Sobel.