Brazil is beginning to develop a secondary mortgage market after the housing industry averted collapse, according to Itau Unibanco Holding SA.

Brazil's real estate market reached bottom last year and is recovering, David Lawant, a real estate analyst at the Sao Paulo lender, Brazil's largest nonstate bank, said at a conference in New York. "We are on the verge of seeing a very large increase of securitization of receivables" of residential real estate, Lawant said at the Brazilian-American Chamber of Commerce event.

Latin America's largest economy became the latest Group of 20 economy to emerge from recession last week as the government reported local demand helped gross domestic product expand 1.9% in the second quarter from the previous three months.

President Luiz Inacio Lula da Silva's government may raise its forecast for growth next year to 5% from 4.5%, Economic Policy Secretary Nelson Barbosa said Tuesday.

"We have a positive view here," Lawant said. Demand in Brazil for the government's housing program is more than the planned 1 million houses, he said.

The president unveiled a plan on March 24 to spend $18.8 billion building 1 million homes for low-income workers.

Under the program, families earning less than $770 a month would make only symbolic home payments of as little as $28 per month. Those making less than $1,500 also are eligible for subsidies.

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