Sao Paulo property prices seen staying low until at least next year

Sao Paulo

REAL estate prices in Sao Paulo, Brazil's biggest market have bottomed out. And they should remain near that level until at least next year as Brazil's recession plods on, according to two of the city's largest real-estate companies. The outlook is a dismal reflection of business activity in the city, the country's major financial hub and third-biggest contributor to economic output after its surrounding state and the state of Rio de Janeiro.

Brazil's spiralling economy has hit the real estate industry at its core, with two consecutive years of contraction, unemployment above 10 per cent and high inflation. Consumer confidence has tanked, and banks are refraining from offering credit.