The Brazilian property boom may be starting to slow down, according to the Brazilian Association of Home Loans and Savings Banks.

The country’s real estate market has soared in value since 2006, with lending expanding at 50% annually every year until now. However, the rate of expansion is slowing, says Octavio de Lazari Jnr, president of the Association, mainly attributed to the Brazilian economy, which is also experiencing a slowdown.

Brazil’s economy was expected to grow by 4.5% at the start of 2012, but that has since been revised to a much lower 1.8% thanks to the impact of the European financial climate.

‘Now we are revising our estimate (for mortgage growth) to an expansion of 20% amid the overall slowdown of economic activity’, Lazari reportedly said.