Brazil's recession dampening demand for housing

Sao Paulo

BRAZIL'S once red-hot housing market has turned cold quickly, forcing many developers to slam the brakes on new construction, though one corner of the industry is so far riding out the nation's worsening economic slump.

The Brazilian real estate market is witnessing a drastic reversal from four years ago, when an economic boom lifted millions into an expanded middle class and fuelled a home-buying frenzy that pushed prices up by as much as 30 per cent on an annual basis.