The Real Deal Miami

Brazil’s shaky economy could hit real estate

Crashing fortunes in Brazil could cool demand in South Florida

Miami homage

Brazil, an important source of the cash that has fueled South Florida’s real estate recovery, could soon play a different role – the cooler, CNBC reported.

With stocks and fortunes crashing in Brazil as mass demonstrations hobble the country, South Florida’s middle-market homes and condos, ranging from $200,000 to $2 million, could be the hardest hit, CNBC editor Robert Frank said.

“In Miami, 12 percent of sales come from Brazilians. At some of the higher-end condo towers, it’s two to three times that number,” Frank said.

At the same time, South Florida could draw more of Brazil’s ultra-wealthy looking to put more money into U.S. real estate, a globally perceived safe haven, the network reported.

Brazil’s stock market index has declined about 23 percent this year. This month, Standard & Poor’s cut its outlook on Brazil’s credit rating to negative, citing slowing growth and weakening finances. Inflation is becoming a growing concern, further battering the Brazilian real. [CNBC] –Emily Schmall