Skyrocketing rental prices in Brazil over the past year have some analysts comparing its housing market with that of the U.S. before the recession crippled home values. Prices are up more than 24% from last April, with the average price for a new property in Ipanema, Rio de Janeiro’s most expensive district, rising to US$8,212. Major contributing factors are increasing wealth in the nation, a more stable economy, a growing population and the availability of credit. Experts note, however, that interest rates are also on the rise, and the debt burden has spiked sharply in the country, causing fear of a bubble.
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