After all, it’s all about credit…

Between January and November 2011, Brazilian banks loan contracts for the real estate market (developers and individuals) reached R$ 71.68 billion, up 43.3% over the previous year (R$77.84 million in the 12-month period ending November). Despite a deceleration from March, when growth was around 65%, the real estate loan business remains strategic for banks (click here to see the list of 10 largest home lenders in Brazil).

“It is increasingly difficult to repeat the performance of previous years, but we expect significant growth of this type of loans.
It is the fastest growing banking product,” says the vice president of Banco do Brazil, Paulo Rogério Caffarelli. The public bank, controlled by political party PT, estimates that it ended 2011 with a loan portfolio of R$ 7.5 billion, more than twice the one registered in December 2010.

The absolute market leader in the segment is Caixa Economica Federal. Other players are Itaú , Bradesco and Santander… and it seems like there is no sign of a slowdown.

How is this chart for real estate loan growth?

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