POSITIVE OUTLOOK FOR BRAZIL’S PROPERTY MARKET DESPITE FALLING HOME PRICES

The outlook for Brazil’s housing market is improving, fuelled increasing construction and home sales, as well as a positive economic outlook.

In Sao Paulo, house prices fell by 2.38% year on-year in the second quarter of 2018 – a growing trend since the financial crisis of 2013, when the when the central bank raised key interest rates nine times to 11%  causing a sharp economic slowdown.

Following the impeachment of President Dilma Rousseff in 2016, the nation has been swamped by further political controversy with the corruption scandal surrounding the new president, Michel Temer.

Brazil’s unemployment also remains stubbornly high at 12.4%, but the nation looks to be slowly emerging from the recession, with economic activity rising by 1% in 2017 from a year earlier, according to the Central Bank of Brazil.

This year the economy expansion has continued to rise by 1% year-on-year, and experts predict the property market will soon be seeing some slow growth. This is expected to have a positive impact on house prices within the next three-to-five years.