Categorized | International

Brazilian Residential Property Market Expected to Increase in 2012

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Many analysts are predicting that Brazil’s residential real estate market will experience strong gains in the next year. While the market is expected to see increases at an impressive rate, a bubble won’t likely form for at least a few years in Brazil’s residential property sector.

As Brazil’s middle class continues to experience strong growth, it is likely that many families will make the change from renting to home ownership. Over the last two years, home prices have surged at unprecedented levels. Despite the tremendous increase in prices, many potential homeowners are still expected to purchase their first home in the coming year.

Prices are expected to jump as much as ten percent throughout Brazil, where consumer confidence remains at record high levels. The anticipated growth makes Brazil one of the few nations around the world that will likely see an increase in home pricing.

There was a fear that Brazil’s uncharted growth over the last few years would result in a bit of a downturn for 2012. However, the most recent data to surface indicates that the market will continue to gain strength throughout the year. As such, some analysts have gone as far as saying that the market won’t stop gaining until the slum areas of Brazil have finally disappeared.

There are many factors that are certainly contributing to the rise of the Brazilian residential real estate market. The unemployment rate stands at a record low. In addition, many Brazilian homeowners opt to purchase homes for permanent residence, thus eliminating any such risk of rapid sell-offs of homes. Those reasons alone have helped Brazil maintain a healthy housing market.

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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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