Luxury property has moved to the top of the investment agenda in 2015 for the world’s richest people with a significant percentage planning to buy property this year. The number rises even higher in Latin America where Brazilian cities feature among those with high property price increases.
On the back of solid demand from society and increased mortgage lending, there’s plenty of room for growth in the Brazilian property sector. With the total home loans to rise by 10 per cent next year, 2015 looks set to see further consolidation in the market.
There have been signs that consumer spending in Brazil has slowed down, but the luxury car sector tells a completely different story. Booming sales so far this year confirm that the upper middle class in the country still has money to spend and plenty of it.
The Brazilian labour market continues to be buoyant with the unemployment rate reaching a record low of 4.3% at the end of 2013. This downward trend continued into January 2014 where unemployment was lower than economist estimates, as surveyed by Bloomberg.
The Brazilian housing market remains strong with steady house price increases. The final quarter of 2013 saw house prices rise by 3.5% from the previous quarter with all major Brazilian cities benefitting from increased property values. Brazil continues to hold its position as a hot property location for real estate investors.