The soaring real estate prices in Rio since 2008 have been stabilizing and, in the case of older homes, they are actually falling for the first time in a long period of rising valuations. Here is what Rubem Vasconcelos, president of real estate brokerage Patrimóvel, had to say about it (via O Globo):

“In the South area of Rio (Zona Sul), the prices of used apartments were unsustainable, so sales took a hit. This is why the owners are starting to accept counter-offers and give discounts. I strongly believe that property values in Rio ​​will suffer a 25% to 30% correction in 2012.”

Pricing it lower…

Last October, designer Marcio de Souza put up for sale his two bedroom apartment in an old little building at Jardim Botanico for a whopping R$900,000. Now, after six months and no offers he called his real estate agent re-set the price to R$670,000. “I think the market had gone crazy and it’s now back to reality,” says Souza, who is about to close a deal at the lower price.

Source: O Globo

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