Property mortgages in Brazil reach new record levels
Posted: 08/19/10 with the tags Property market
The growing economy in Brazil and the strong growth in the Brazilian middle class, has also led to strong growth numbers in Brazilian bank mortgages for properties in Brazil.
Numbers from the first quarter of 2010 are the highest ever-recorded in Brazil. According to ABECIP, the Brazilian association of entities for real estate finance and savings, the numbers for 2010 already reaches 24 billion R$ BRL which corresponds to 187 000 Brazilian properties having been purchased in Brazil with bank finance.
It is forecasted that the total mortgages values for property purchases in Brazil for the year of 2010, will reach 76 billion R$ BRL. The governments program "Minha Casa Minha Vida" ( My Life My Home ) is the leading driver for the surging Brazilian mortgage market and an increasing number of Brazilian families are buying properties in Brazil due to this program. For the year 2014, the forecast is that the real estate mortgage values in Brazil will reach over 270 billion R$ BRL.
As Brazilian banks are offering lower interest rates along with longer mortgage times, the strong growth in the mortgage market is a direct result of this.
Bank finance is not yet available for foreigners buying property in Brazil. However, real estate prices in Brazil are still very low compared to most other advanced markets, and the capital growth opportunities for Brazil investment property are thought to be excellent well into the future. Please see our selection of Brazil real estate for sale to see solid investment opportunities.