The deal between Gafisa and Odebrecht is paying of: the profits of Gafisa's rose 89% last year and jumped to 143,8 million R$.
The underlaying dynamics:
1. Brazil's unemployment rate fell in December to the lowestsince 2002, spurring borrowing.
2. Contrary to the US and the US, the mortgage rates in Brazil were very low. In Belgium mortgages account to more than 113% of the GDP. In Brazil this is currently only 1% ! Gafisa expects mortgages to swell as much as 12% of Brazil's groos domestic product in five to seven years.
Gafisa is Brazil's second largest real estate company.
Disclaimer: my wife is related to Odebrecht.
