Brazil’s real estate market is booming again according to New York-based real estate private equity firm GoldenTree Insite. President Thomas Shapiro stated “we sold every unit in four hours” when referring to a recent 104-unit residential project in middle-class Sao Paulo launched two weeks ago at the start of June.
Shapiro said the fundamentals of the Brazilian economy looked better than expected for the year ahead and a stimulus package from the government had helped the real estate market heat up again. He outlined that the Brazilian upper class prefer hard assets when crises arrive, and discarded any signs of a real estate bubble occurring in Brazil. “Brazil was never leveraged” he said, adding “mortgages represent only 2% of Brazil GDP”.
From these simple facts the likelihood of a bubble is understandably reduced, and in a country with an 8-million housing deficit “buyers of these units are simply not speculators”. For the full report visit Reuters.
Tags: Economy, mortgages, Real Estate
