Will Brazilian Property Prices Continue to Rise?

The Brazilian property market has gone from strength to strength in recent years, and this has partly been financed by a growing mortgage market, the rise of the middle class and lower interest rates. However property prices have now risen so steeply that many ordinary people in Brazil cannot afford to buy a home. A two bedroomed apartment in Rio de Janeiro has appreciated by 220% between 2000 and 2009, while in Brasilia square metre values have increased every year by an average of 25%.

The lack of proper indices makes it very difficult to analyse what is actually happening to property prices, as many expert opinions remain divided. Some have been anticipating a quieter market in 2011 with prices rising less steeply.

However a drop in property prices doesn’t seem very likely which is partly due to the increasing numbers of middle-class who are enjoying more substantial incomes, and also the banking systems strict controls on lending. It’s expected that the population here will increase from 190 million to 234 million by 2030, and that economic conditions will continue to improve. All these people will need somewhere to live.

Join The Conversation - Be The First To Comment

Categories: Brazil Property / Property Invest

Tags:

Like What You Read? Stay In Touch

Follow Colordarcy on Twitter or Facebook