Friday, 7 January 2011

Brazil Property Enjoying Sustainable Growth

While some countries have suffered heavily as real estate bubble’s were abruptly popped, other’s have remained stable and stayed on track for a steady trajectory of long term growth.

Brazil property is a prime example of this. Throughout 2009 when we all had realised the hopes that most emerging markets would avoid property market crashes were in vain, Brazil was frequently mentioned as a hotbed of potential growth, with big names like Sam Snell acting as patron saints.

The latest big name to put his weight behind Brazil as a property investment hotspot is Donald Trump, who has just entered into a joint property development venture in the country, and told the Los Angeles Times that he felt investing in the country to be a safe bet.

Another, Warren Buffet stated to Fox News that Brazil could just become “one of the world’s greatest investment opportunities in modern times.”

The former President Luiz Inácio Lula da Silva was highly committed to fuelling growth in the property and housing market. His increasing the maximum mortgage repayment term from 12 to 30 years, and the Minha Casa Minha Vida (My House My Life) scheme, have helped the youngest and those on a low income to buy a house.

It is predicted that the Brazilian economy will have grown 7.5% in 2010, making it one of the fastest growing economies in the world. 100 economists recently predicted that growth will slow next year, to a still-very-strong 4.5%. With da-Silva's protégé having taken the helm experts predict this growth to continue being channelled into housing market growth.

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