Blog

Early 2012 indications from the FipeZAP index of Brazilian real estate asking prices have pointed to a deceleration of the huge leaps that have typified the market in recent years.  In spite of still being above the national level of inflation, the rise of 1.1 percent (for houses and apartments) in December represents one of the slowest average growth rates that the index has published since records began in January 2008.

In Rio de Janeiro – a city where it was recently reported that football player Ronaldo placed his property on the open market for R$ 40 million having paid R$ 12 million three years ago – prices in December grew by 1.1 percent, the slowest pace of growth in 2 years and 8 months.  The table below shows some of the patterns of 8 of Brazil´s major cities analysed by the index:

While Recife (Pernambuco state) continues to demonstrate strong performance (fuelled by the rapid economic growth owed to rising industrial investment and activity), many are debating that the recent statistics represent a new reality for Brazil property prices.  Combined with an uncertain global economic climate, lower sales figures have been deemed to represent a less motivated market and prices that have grown beyond the realms of affordability.   Please see my recent article on the Brazil property bubble via the Global Property Guide portal.