Brazil's Property Market Thriving Due To Demand

Brazil’s property market is currently flourishing due to a large demand for new homes, most apparent within the middle class sector of Brazil.

Brazil’s middle class is one of the fastest growing class segments within the Brazilian economy, having seen a 65% increase in this demographic over the last 5 years, currently representing over 50% of the population.

Portfolio manager of BlackRock Latin American Investment Trust, Will Landers, said that he expected Brazil to “experience a huge amount of growth” in its economy due to class mobility.

This is a direct result of a decrease in the number of Brazilian residents considered to be lower classed, coinciding with an increase in both the middle and upper classes.

This shift in the population will increase the amount of consumer goods brought by Brazilians and it is also the driving force behind the escalation in demand for credit, especially concerning housing finance.

There is currently a suggested 9.1 million deficit in the amount of homes available such is the immense requirement for homes in Brazil, providing a clear opportunity for investment in Brazilian real estate.