Categorized | International

Brazil Property Market Expected to Remain Strong

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As Brazil’s residential real estate market continues to exceed expectations, many are starting to wonder if a bubble may soon form in the growing nation. After all, other nations with rapidly growing real estate markets have enacted multiple measures to prevent a crippling bubble like those seen in the United States, Dubai, Spain, and Ireland.

 

Economists, though, continue to be very positive about the long-term success of Brazil’s residential real estate market, and have dismissed any thought of the formation and subsequent bursting of a property market bubble. Although the Brazilian market won’t be able to sustain its double-digit growth over the long-term, many believe that the market will, at the very least, continue growing at a more moderate pace.

 

One of the biggest differences between the Brazilian residential real estate market and others around the world is that the majority of those buying homes in the Brazilian market are doing so to actually live in them. There have been very few, if any, homes purchased for speculation purposes.

 

In addition to that point, it should be noted that, despite incredible growth over the past few years, the Brazilian market is still relatively small. Only a very small percentage of the nation’s GDP is made up of outstanding loans, and banks have not yet made it possible for non-residents to secure any kind of mortgage financing. As such, the market is still very much controlled.

 

While countries such as the United States struggle to keep its middle class intact, Brazil has seen its middle class grow exponentially. It is for that reason, as well, that many expect the nation’s property market to continue its strong performance.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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