A recent poll carried out on real estate and financial experts regarding the Brazilian property market has revealed that a steady increase of up to 10% is expected across the residential market over the next 12 months.
The poll, which was carried out by Reuters on 15 banks, research groups and business associations suggests that fears of a sharp downturn in the Brazilian residential market have been exaggerated.
Waseem Saddique, a Brazilian property expert and CEO of Housetech Developments based in Rio de Janeiro, comments: ‘A recent credit boom and a substantial improvement in worker salaries and affordability conditions has meant that any fears of a downward turn in property prices is unfounded.’
The fast growing Brazilian middle-class population is very likely to keep a close watch on property investment opportunities as they look to move on from renting into home ownership. This will allow house prices rises to remain steady and contribute to the overall 10% increase that is expected throughout 2012.
Nine out of 14 forecasts highlighted in the Reuters poll back up the claim of residential property price increases in Brazil, but the numbers do vary between 5% and 10%. What remains clear though is that the market is on an upward trend.
For instance, between 2009 and 2011, Sao Paolo alone saw the average price of a new home increase dramatically, with an 85% rise across some areas of the city. During the same period consumer inflation also rose by an estimated 15%.
The thriving nature of the Brazilian housing market does provide a bright spark in a global market that is currently under severe pressure. However, a note of caution has been revealed by the poll, with experts predicting that continued property rises are only likely throughout the first six months of 2012.
Yet, for most people who watch the Brazilian property market closely, the overriding positive factor is that having seen the housing market struggle for much of the 1980’s and 1990’s, experts who took part in the Reuters poll are seeing vast improvements during the modern era.
The economy has also played its part and alongside government initiatives to improve property standards across Brazil, the future looks good. A statement from ‘My Home, My Life’, a government funded housing initiative said that: ‘With unemployment levels at a record low, demand for housing should remain steady for the foreseeable future.