Patrimar Engenharia has won the Residential Development category at Brazil's Secovi Award for its luxury Oceana Golf project in Rio de Janeiro.
The award, widely considered the Oscar of the Brazilian real estate sector, recognizes the developer's flagship complex built in the coastal neighborhood of Barra da Tijuca.
Speaking in an interview with CNN Money, Patrimar chief executive Alex Veiga outlined the company's strategy to expand business volume while rebalancing revenue toward lower-income housing.
The award-winning Oceana Golf complex features six residential towers containing 264 apartments. The development offers views of the Olympic golf course, the Marapendi Lagoon, and Reserva Beach.
Veiga said the primary distinction of the project is its location on a 25,000-square-metre site. He noted that the land sits adjacent to the Olympic golf course, followed by a narrow section of the Marapendi Lagoon and Reserva Beach.
He also highlighted the quality of finishing across the complex, describing Oceana Golf as currently the best condominium development in the city of Rio de Janeiro.
The Secovi Award is presented annually by the Housing Union, representing the real estate and housing sector across Brazil. Barra da Tijuca hosted multiple athletic venues during the 2016 Summer Olympics, including the golf course bordering the site.
Expansion in Minas Gerais and São Paulo
Addressing Patrimar's expansion plans, Veiga stated that the company intends to concentrate its efforts on its existing operations in Minas Gerais and São Paulo over the coming years. The builder plans to increase its total volume of business across both regions.
Patrimar was established in Minas Gerais, a major state in southeastern Brazil, before expanding into São Paulo, the country's primary economic center.
Veiga identified the lower and middle-income housing segments as the company's main growth driver. He explained that expansion in these categories is being propelled by Minha Casa Minha Vida, Brazil's federal social housing program.
Minha Casa Minha Vida offers government subsidies and favorable mortgage terms to broaden home ownership among lower-income families. Veiga noted that the low and middle-income sector currently enjoys a far more favorable operating environment than high-income real estate.
Between 60 percent and 65 percent of Patrimar's revenue currently comes from high-income properties. The company has set target milestones to shift that balance over the next several years.
Veiga said Patrimar aims to adjust its revenue split to approximately 60 percent high income and 40 percent lower income by 2027. The company's goal for 2028 is to achieve an equal 50-50 division between the two segments.
High interest rates weigh on buyers
Veiga also addressed the obstacles created by elevated interest rates in Brazil's property market. He said high rates are leading consumers to delay purchase decisions and creating difficulties in securing home financing.
He observed that prospective buyers think two or three times before withdrawing funds from banks. High borrowing costs also squeeze household budgets when buyers commit to financing packages.
Although mortgage defaults have increased as a result of tight financial conditions, Veiga noted that delinquency levels have not reached a critical point.
Veiga emphasized that an interest rate reduction is the main condition needed for the real estate sector to accelerate. He identified a rate of around 9 percent as a reasonable level that would allow companies to operate comfortably.
He concluded that consumer appetite for buying homes remains strong across the country, with prospective purchasers waiting for more favorable financing terms before completing transactions.
