Brazilian residential property prices expected to rise by up to 10pc in 2012

Property prices in Brazil are likely to increase modestly, around 5 to 10%, in 2012 and the real estate sector should avoid a bubble, according to a poll of real estate and financial experts.

The Reuters poll of 15 banks, research groups and business associations downplayed the risk of a sharp downturn, with a recent credit boom underpinned by a steady improvement in wages and affordability conditions.

The rapidly expanding Brazilian middle class is expected to keep a close eye on opportunities to stop renting and move into ownership, holding up prices even after they almost doubled in some neighbourhoods.

‘When the slums disappear and the Brazilian housing sector gets more mature, then prices will stop rising,’ said Andre Perfeito, chief economist at Gradual Investimentos. brokerage.

Source: PropertyWire.com