That’s a tiny one-bedroom apartment in downtown Belo Horizonte for £108,000. Think about how much house that buys in Miami or Manchester, and then remember the average annual salary in Brazil is £6000, or US$10,000.
The price for a home in Belo Horizonte has increased 93 per cent since 2009. In Sao Paulo and Rio de Janeiro property has risen 200 per cent in six years, a boom that began right after the financial crash in the US.
Analysts say Brazil is not experiencing a property bubble like the US, however, because mortgages are only given to those who can prove monthly payments would be no more than 30 percent of their income. As such, only 20 percent of Brazilians have mortgage debt.
And yet the chief emerging markets economist at Capital Economics estimates that Brazil’s residential real estate market may be overvalued by as much as 50 per cent.