Brazil is an emerging market and has proven to be a hot spot for property investors in the last year or so. In 2010 Brazil had a tremendous year economically as well as in the real estate sector, though some predict that things will slow down in 2011.
Recent figures show that perhaps Brazil’s property market hit its peak, but the potential still exists for further growth. From September to October 2010, the average home price fell 3.53 percent and there were 25.6 fewer houses sold.
These statistics do not surprise experts, as Brazil has experienced such a rapid increase. At some point, the market growth hits its peak and a slowing down will occur.
The real estate organization EMBRAES reports that since 2008, the average value of a one, two, three, and four bedroom apartments in Sao Paulo is worth more than 50 percent more now when compared to the previous two years.
Some say that the slowing of the market is simply a sign that the market is returning to normal after a surge of real estate over the last couple of years. The supply and demand are closer now and experts think that the market is where it ought to be now.
Overseas investors have been very interested in Brazilian property and they are expected to continue to invest in the market. With low unemployment, income growth, and a strong economy, property investors see the potential of a high return yield in the years to come as property prices increase.
Additionally, the Olympic Games and FIFA football World Cup are planned to be held in Brazil this year which will boost confidence in the area as well.
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