The latest Credit Suisse report on Brazilian Homebuilders & Real EState Brokers is available and titled “Is There A Bubble Ready to Burst?”. Thanks to HousingMarketBr for the information. Here is a summary:
1. Prices have gone up about 90% since 2008
2. Homebuilders’ margins remained flat during the period
3. Rising land costs is the biggest challenge.
4. Better financing conditions boosting demand
5. Not competitive from an international standpoint.
Their conclusion (not ours): “We believe rising prices do not properly characterize a bubble yet.” Full report below.