Property prices not expected to fall in Brazil in 2014
|Tuesday, 11 February 2014|
| Real estate prices in Brazil have been cooling since the end of 2011 but they are not expected to decrease in 2014 due to supply and demand inbalances, according to a new report.However, although statistical data are scarce and there is a wide dispersion of prices and incomes, available information shows that residential properties in large metropolitan areas have become very expensive for the broader middle classes.
The most up to date analysis of the housing market from Fitch Ratings points out that for many property is only accessible through high leverage and long term financing of up to 35 years.
‘This explains the slowdown of income adjusted price increases in the last two years to a cumulated 10%. Rental yields have fallen to levels below low risk investments and are sharply below mortgage rates,’ it points out.