Jan 19 2014, 3:06am CST | by Forbes
Whether it’s because of the new mortgage market and low interest loans available to Brazilians earning more money, or just a plain old over-stretched housing bubble, the roof has blown off Brazil’s housing market. Anyone who has bought a home in Brazil is smiling wide with its increased valuation. Anyone trying to buy a home has surely been priced out of a market or two over the last five years.
The sober Bank for International Settlements — the Central Bank of the world’s Central Banks — said this week that over the last five years no market on earth was hotter than Brazilian housing.
In fact, Brazil home prices rose a whopping 121.6% from 2008 to 2013, more than housing prices in Hong Kong.
Hong Kong housing prices rose 101.4% in that same period.
Brazilians that bought homes during or slightly after the crisis have seen their housing values soar since.
The Bank (BIS) examined housing markets in 50 countries, using local real estate indices measuring average prices per square foot and average new home price. For Brazil, BIS used Central Bank indices that weigh housing prices in 11 major cities, including Rio and São Paulo, far and away the costliest cities in the country.
In 2012, Brazil’s housing market began to cool. And now, while prices are still going through the roof, they are not going through it as fast, or making as much noise. Still, a 9% increase in 2013 is nothing to suggest a bubble is popping.
Liam Bailey, a senior researcher at Knight Frank, told Estado de Sao Paulo newspaper on Friday that Brazil’s overheated real estate market actually made it a bit less attractive. He likes Dubai and big cities throughout Turkey for foreign real estate buyers.
“Brazil is still a market for local investors,” Bailey said.
Source: Forbes Business
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.
blog comments powered by Disqus