Increasing wealth 'fuels demand for Brazilian property'
Date added: 1st October, 2010 at 09:19
(view all articles from October, 2010)
Categories: Economy, Property News
Brazilian property is benefiting from the increasing affluence of the country's population, it has been claimed.
Writing on the Daily Profit Blog of Wyatt Investment Research, Jason Cimpl noted the nation's minimum wage has leapt 46 per cent since 2003.
Due to higher salaries, a middle-class demographic is growing in the country, with 50 per cent of Brazilians now belonging to this group.
The real estate market has profited from this social mobility and the expert described it as "one of the biggest opportunities for growth in Brazil's low-income market".
Investors are capitalising on the nation's growth, with the country's stock market index the Bovespa gaining 83 per cent in 2009 and continuing to trade highly this year.
Many are buying into property developers, the expert noted, including the largest homebuilder in the country Gafisa.
Shares in the firm jumped from $4 (£2.54) to $20 in 2009, while the specialist predicted they will eventually reach $22.
"The rising standard of living will continue to fuel real estate development in the future," he asserted.
Gafisa's peer BR Properties is also performing well, with Fitch Ratings recently ranking it B+, citing consistent profits and low vacancy levels.
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