According to a recent poll by Reuters, residential property prices in Brazil are expected to increase in 2012 by between 5-10%.

The poll of 15 banks, research groups and business associations downplayed the risk of a sharp downturn, with a recent credit boom underpinning the market alongside a steady improvement in wages and affordability conditions.

Andre Perfeito, chief economist at Gradual Investimentos, said: “When the slums disappear and the Brazilian housing sector gets more mature, then prices will stop rising.”