Cyrela reports increase in net operating revenue

Brazilian property builder Cyrela has reported increase in net operating revenue for the first quarter of the year.

Cyrela Brazil Realty is Brazil's largest developer of residential properties. It currently operates in 17 states and 55 cities in Brazil, and also in Argentina. According to Dow Jones Newswires, The Company has reported net profit of 100 million reais (£31.5 million) for the first quarter of the year, up from 68.5 million reais during the same period in 2008. Net revenue stood at 671 million reais for the January to March period, up from 550 million reais in the first quarter of 2008.

Elie Horn, chairman of Cyrela's board of directors stated that in residential sector, the company is growing at 80% to 90% a year for the past three or four years. In 2009, the growth was in low-income, middle-income and high-income. It was in the all sectors of Brazil. Of course, low-income is the category that is supposed to grow more because more people willing to buy such apartments.

Meanwhile, another Brazilian property builder Gafisa has reported a 59 per cent increase in net operating revenue for the first quarter of the year with the income of 541.9 million reais (£171 million), up from 340 million reais for the same period in 2008. The company has managed to "successfully ramp up" its sales efforts, generating over 558 million reais worth of income. The rise in returns has been attributed to an increase in sales of Brazil real estate during the first three months of the year.