The growth in the Brazilian property market is backed up by a whole range of encouraging trends in the nation. The impressive expansion in the sector rests firmly on factors which many believe are here to stay regardless of detractors and their warnings of a 'property bubble'.

On the contrary, the real indicators are extremely encouraging. They include the increasingly falling level of unemployment among the labour force, the general rise in wages and salaries and of course the continual drop in interest rates. All this bodes well for the economy in general of course but also for the property industry in particular.

This optimism is backed by no less an authority than the president of Brazil's esteemed Association of Home Loan & Savings Banks Mr Octavio de Lazari, who stated lately "The outlook remains unchanged and will carry on growing." He also reminded spectators that the huge deficit of affordable social housing in the country, while steadily falling due to the influx of 'minha casa minha vida homes', still exists on a massive scale. furthermore, mortgages for the average middle class family have only been available in very recent years and are very much still in demand. in spite of the thirst for these, Mr de Lazari emphasised that the situation is still well controlled, as outstanding mortgages still only equal 4.8 percent of GDP, although set to double by 2014.

To take the three key indicators in turn, unemployment in Brazil fell to a record low of six percent in 2011. That was a further improvement from the previous record of 6.7 in the preceding year. Coupled with that was the advance made in the second element, wages and salaries. The average income for Brazilians is now $R 1625 per month which is a rise of nearly three per cent over the previous year.

This brings us to Interest Rates. During the latter part of 2011 and also early 2012, they’ve been steadily reduced by cautious (but continuous) half-point steps. The level now is almost at a record low but still of course is greater than many of the leading BRIC nation’s competitors.

Among the other optimists for the housing sector is Brazilian Finance Minister Guido Mantega, who unequivocally agrees with Mr. de Lazari. The Minister said that the government is pleased but is of course carefully monitoring the situation, as any sensible administration should Government supervision is enthusiastic. At the smallest sign of difficulty, the government will intervene with steps to guarantee an organized real estate market."

There is also the probability, it seems, of new financial instruments being authorised this year. These new mortgage-backed bonds ( LFI’s) are eagerly awaited….Plus the minha casa minha vida social housing program will enter it's 4th phase in 2012.. Watch this space!