Why Investors Should Take Brazil Seriously

According to banking group Cetelem BGM the official C-Class population of Brazil now stands at 101 Million people, an increase of almost 65% in only 5 years. The Middle class now is the largest class segment of Brazil’s population of almost 200 million people accounting for 53% of the total population as outlined in their recent study - "The Observer Brazil 2011".

As a testament to the economic growth of Brazil as a nation, the growth in the middle class is staggering and creates an official middle class population to rival that of the UK, Italy and France combined. What is also interesting is that the A/B Class segment (upper classes) has also grown by the same margin of 65% rising from 26 million people to over 42 million people.

Throughout this same five year period since 2005 the same report shows the D/E classes in Brazil has reduced by almost half from 92 million people to 47 million making this one of the most successful multi-class economic growth periods, across any nation in recent history.
When you consider this growth, it is clear to see that with so many new entrants into the A-C class category there is going to naturally be a massive growth in demand within consumer products, real estate and property targeted at these markets. The Cetelem BGM report also points to a 45% average growth in disposable income in 2010 alone and is expected to further fuel access to credit, mortgages, etc.

If you apply these figures when considering property and real estate investment in Brazil, then the numbers suggest that projects that target and capture the Brazilian domestic A-C middle and upper class market, (where demand is growing fastest, and credit/finance is becoming ever more available to the domestic market), are the ones to consider high on your agenda. As a mentor once said, ‘Open your restaurant where there are hungry customers who have the money to pay.’