Brazil property prices are continuing to climb, according to new figures.
Brazil has been ranked in 20th place worldwide, just one spot below the UK, according to the latest Knight Frank Global House Price Index, achieving 5.4 per cent growth over the last 12 months.
Indeed, Latin America has been ranked as the second fastest growing global region in terms of its house prices, with the region achieving above-average year-on-year house price growth of 5.1 per cent this year, far above the Global House Price Index’s overall growth of 0.3 per cent.
Luiz Fernandes, CEO of leading Brazilian developer, Ritz-G5, comments: “Latin America, and Brazil in particular, is taking a strong position on the world stage, with the newly released Knight Frank data showing outstanding house price growth. This, coupled with the increased bank reserve requirements towards housing, means that the future of the Brazilian construction and real estate sector looks increasingly bright.”
Under the new resolution put forward by the Brazilian National Monetary Council, R$22.5 billion ($7.3 billion US Dollars) will be directed towards farm and housing credit, whilst banks are set to increase their reserve requirements on saving deposits from 20% to 24.5%, which will be used for housing credit. These measures will help to direct a significant part of the Brazilian economy towards the real estate sector, therefore spurring on an increase in activity.
Specifically, Brazil’s cities are witnessing the greatest positive activity, with Sao Paulo achieving 5.8 per cent house price growth and 1.4 per cent rental growth over the last 12 months, according to Fipe Zap Index. House price growth across Brazil’s largest cities has been gaining since 2010, amounting to 89.7 per cent in accumulated growth, equalling an average of 20 per cent per annum.