Exame magazine’s latest article on the real estate bubble in Brazil is astonishing (download the print issue below the article – it’s in Portuguese). For instance:
“The launch of the new Cyrela building is the greatest evidence of the euphoria surrounding the Brazilian real estate market. Six months ago, when the firm Ibope measured the move in house pricing in the country, it was found that no market in the world had the valuation acceleration of Brazil: 2010 to 2011, prices rose 25% on average. Many suspected that the surge would stop there and that the market might have already hit the roof. But in the last quarterIbope updated its numbers in four cities (Porto Alegre, Recife, Rio de Janeiro and Sao Paulo) and the researchers conclusion was that the euphoria was still going strong.
The market in Rio de Janeiro is watching a real estate carnival (“oba-oba”) that defies logic. On average, each square meter appreciated 18% between April and October. Only in the Maracana Stadium area the price per square meter rose 50% in the last six months. The outermost regions are being pacified, and the infrastructure works are attracting the attention of those looking to buy a property in Rio. This expansion should continue until 2016,” says Rogerio Zylbersztajn (Cyrela’s Vice President).
Some irony (by us): Yes Mr. Rogerio, you are right, this time is different. Like everyone have been saying in Brazil, “The bubble will only pop after 2016”.

Farra Imoveis Continua Exame

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