Brazilian Consumers Are Renegotiating Properties Bought on Instalment Plans

Drop in income leads Brazilians to request payment deferrals in installments for new properties and the spreading of upcoming payments on the outstanding balance.

RIO DE JANEIRO, BRAZIL - The drop in income of a large number of Brazilians, due to the coronavirus crisis, has rekindled fears within the real estate market of facing once again an old problem in the sector: abrogation, jargon used by consumers to return property purchased on instalment plans before construction has begun.

This was the nightmare of developers and owners of newly constructed real estate during the recession that started in 2014, when the sector reported record levels in the number of properties returned to the builders.

Now, in the face of the pandemic, consumers have begun to seek . . .

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