Booming economy brings higher house prices in Brazil
As the country continues to enjoy a booming economy the cost of residential real estate in Brazil is on the up and is expected to stay upbeat for the foreseeable future according to several experts.
As a result of the global credit crisis property markets across the world were badly hit by the recession that followed and several markets have yet to recover. USA real estate prices crashed and although some regions show tentative signs of recovery industry insiders suggest a full recovery is many years hence, the same can be said for Spanish property, property in Dubai, Ireland and Greece.
Some economists are concerned that Brazil’s real estate industry will suffer the same fate but real estate experts believe it will not happen in Brazil as property speculation does not play a large part in the country, most people buy homes to live in and not necessarily to profit from in the short term.
Banks in Brazil already have fairly strict lending criteria and a shortage of homes to buy is pushing prices upwards.