Brazilian property market is still favourable
The Brazilian property market is going from strength to strength, with a private investment company predicting 2011 to be the country's biggest year yet.
Obelisk International said that a clear way to gauge the success of a property market is to look at levels of real estate funds, as in Brazil these investment funds are bigger than ever.
In 2010, the number of real estate investment funds grew to 101, an increase of 13 per cent.
However, the value of the funds is even more impressive, net worth reached R$8.3 billion (£3.2 billion) last year, an increase of 62 per cent on the previous year.
"With the supply of property in Brazil unlikely to satisfy demand at least until 2030, real estate investment funds have a very bright future. They offer several advantages such as low-cost operations and diversification of products," the firm suggested.
In addition, the growth in the Brazilian real estate market is built on strong foundations, as mortgage lending still only accounts for four per cent of GDP in the country.
