(PRWEB) November 20, 2012
Waseem Saddique comments: “One of the areas of north-east Brazil, which is currently experiencing a housing boom, defying misconceptions that the Brazilian Real Estate Market has entered a ‘bubble’, is Pernambuco.
The state of Pernambuco is home to around 9 million people, according to the IBGE, and federal integration minister, Fernando Bezerra Coelho, has described Brazil’s north-east as one big building site at present as the surge in infrastructure gathers momentum.
There are many factors behind the housing boom currently being witnessed in Pernambuco; in particular the cost of real estate in the region is much lower than in the South and Southeast regions around São Paulo and Rio de Janeiro, attracting Brazilian buyers and investment from property investors based overseas. However, much of the boom can be attributed to surging economic growth.
In 2011 Pernambuco state’s economy witnessed a phenomenal growth of 9.3% and other north-eastern areas like Ceará and Maranhão are also experiencing large-scale economic growth and the emergence of industrial developments such as port expansions.
Waseem Saddique states: “There has never been a better time to invest in the Brazilian Real Estate Market, especially in north-eastern locations. The potential for huge returns on investment are proving to be an attractive prospect for investors looking to invest in the Brazilian Real Estate Market.”
Alongside reduced real estate prices, Brazilian credit rates are also at their lowest in history (currently around 7.25%) and terms have been increased from 10-15 years to as much as 35 years. This has meant that a significant number of the Brazilian population now have access to affordable mortgages and are able to purchase property, which was not within their reach previously.
Waseem Saddique comments: “In just the last 3-4 years we've seen mortgage rates drop from the high teens to high single digits, and mortgage agreements have risen from 15-20 year policies up to 30 year standard agreements and in some circumstances even 35 years.”
Brazil is currently experiencing a rise in those people deemed as ‘middle-class’ citizens, as Brazilians begin to earn more and seek to purchase a property of their own. This means investors have been buying up Brazilian properties for re-sale to first time buyers and those able to take the next steps on the Brazilian housing ladder.
The need for homes in Brazil is certainly apparent as the country currently has a housing deficit of approximately 8 million according to public coverage, however, industry experts believe the deficit to be much higher leading to a boom in housing construction, housing development projects and social housing programs as Brazil looks to meet the demand of those seeking a home.