Brazil's real estate market has been thriving over these last years, but economists believe the current growth may not be sustainable.
South Americas largest country currently has one of the strongest residential real estate market in the world. The nation’s middle class is enjoying an upgrade in lifestyle, and property values have soared over the past ten years.
Property prices in some neighborhoods have risen sixfold in the past decade and now rival those in cities such as New York, Paris and London.
Many of those living in the prime neighborhoods of Rio are international visitors. Executives from the biggest industries, including oil, cosmetics, and banks all own property in the area along the beach of the ocean.
The cost to rent a house or apartment in Rio has become so high that most citizens cannot afford them. Even properties with bedrooms too small for beds are commanding obscene prices.
Many of those living in the prime neighborhoods of Rio are international visitors. Executives from the biggest industries, including oil, cosmetics, and banks all own property in the area along the beach of the ocean.
While one might think that only the premier areas of Rio would be unattainable. However, rental prices have become so exorbitantly high that they are grossly unaffordable for many citizens. Even properties with bedrooms too small for beds are commanding obscene prices.
The market as a whole is booming unlike anyone has even seen in the past. However, economists are starting to question whether or not the growth is sustainable.
Some believe that Brazil may face a crash that is similar to or worse than that experienced by the United States five to six years ago. Many believe that the market will not stand the test of time, and may plummet following the 2016 Olympics.
Although, it's all speculation now what will happen, home owners will definitely enjoy profiting from the boom till and if the time comes.
