(PRWEB) January 25, 2013
Referring to mortgage lending figures accumulated for 2012 and published in 2013, Housetech Developments has learnt that Brazilian Real Estate lending, covering both mortgages and loans to real-estate developers, reached a staggering 82.8 billion Brazilian reais ($40.6 billion) in 2012. This has been confirmed as an all-time high by the Brazilian Association of Mortgage and Building Lenders.
Waseem Saddique comments: “It’s a staggering turn of events for a nation, which only a few years ago, witnessed barely any mortgage lending activity. It’s a sign of how far Brazil and the Brazilian Real Estate Market have come in terms of supply and demand of mortgages.”
Although the mortgage lending record previously reached an all-time high in 2011, 2012 figures have far surpassed previous figures. In 2011, mortgage lending figures reached 79.9 billion Brazilian reais. Prior to that, in 2010, the number only stood at 56.2 billion Brazilian reais.
In a statement from the Brazilian Association of Mortgage and Building Lenders’ president, Octavio de Lazari Jr, he said: “Credit for real estate development and mortgages has risen steadily in Brazil and reached a satisfactory level in 2012. Every condition now exists for this process to continue at an annual expansion of 15%.”
Waseem Saddique states: “For national and international investors, a combination of increased mortgage lending and a low level interest rate, means that the Brazilian Real Estate Market is a safe investment venture.”
Further evidence of an increase in mortgage lending in Brazil, supplied by the association, shows that ‘Brazilian mortgage-holders saw an increase in levels of indebtedness in 2012, but rising salaries more than compensated for the increase in debt loads. In addition, the many holders of new mortgages gain, in terms of family income, because their mortgage payments are equal to, or below, what they previously paid in rent’.
Further good news for potential investors looking to invest in the Brazilian Real Estate Market is that banks in Brazil are likely to broaden their focus in terms of mortgage and development lending.
A further statement from the association said: “There isn't the slightest risk of a real estate bubble in Brazil. Brazilians are cautious when it comes to mortgages. It's not a case of impulse buying.”
This is a statement echoed by Housetech Developments founder, Waseem Saddique, who said: “The Brazilian Real Estate Market is in a stable position despite continued hype from the media suggesting otherwise.”