Brazil is creating Brazilian real estate inflation index to monitor Brazilian property market
Posted: 10/15/10 with the tags Economy in Brazil Property market
The Brazilian government is creating the new Brazilian property inflation index to monitor the development of the real estate market in Brazil. The index is meant to act as a helping tool in avoiding similar property bubbles that occurred in most of the western real estate markets prior to the global financial crisis. The index will be called "Índice Nacional dos Preços de Ímoveis" and is expected to be launched during 2011.
During the last 12 months, the amount of property mortgages in Brazil has grew by no less than 50,6 % and is expected to see continuous strong growth numbers for the following years. At the moment Brazil still has a housing deficit of around 6 million homes, and the real estate market will see many years of expansion before slowing down to more normal levels.
Traditionally property bubbles are hard to see coming, and the new index will be a helpful tool in following the development of the property market in Brazil. At the moment, the only index that is actively monitored related to the Brazilian real estate market, is the INCC which is the national construction price index which is published each month.