Brazil property prices ‘unlikely to fall’
The price of property in Brazil is unlikely to go down because of the high demand for quality housing, it has been reported.
According to The Motley Fool, mortgages in Brazil cover a smaller proportion of the value of a home than elsewhere, meaning less risk for lenders who would therefore be more likely to lend.
Bando Bradesco has predicted that mortgage lending for those buying property in Brazil will increase by up to 30 per cent this year, the news provider claimed.
The Motley Fool said the latest numbers from Brazilian lenders show a year-to-date mortgage increase of 35 per cent to the end of June.
It added that Gafisa, the second-largest real estate developer in the country, has seen pre-sales increase by some 62 per cent in the last quarter.
The Motley Fool added that "the current situation in Brazil – growing wages and employment opportunities, a stable economy, and strong demographic trends in housing" – means it is a good place to invest.
It has been predicted by the Economic Commission for Latin America and the Carribean that the region as a whole will grow by 4.7 per cent in 2008, compared with 4.8 per cent for Brazil.
