Spending on Brazilian Real Estate Rises | Obelisk International News
Obelisk International News - Consumer spending looks set to reach record levels this year in Brazil with families spending over a quarter of their income on expenses relating to property. This confirms the potential for strong growth in the Brazilian real estate sector.
A recent survey by IPC Maps reported in Exame magazine finds that all social classes in Brazil are spending more. Total expenses on consumer goods from basic foodstuffs to property in Brazil is expected to reach R$2.5 trillion this year, a significant increase on last year.
A breakdown of spending shows that housing expenses account for a large proportion of family income. Brazilian families spend around 26% of their income on their homes with food and beverages the next largest expenditure (17%).
Population Pyramid Points to Boom in Real Estate
The IPC survey takes a look at the Brazilian population and finds Brazil has a young and growing population, two factors that explain the current boom in the Brazilian property market. They also point to further massive growth in the development of real estate as Brazil strives to provide housing for new households.
According to the survey, almost half of Brazil is aged between 20 and 49. In the younger age bracket (10 to 19 years of age), there are 34.6 million Brazilians. Between them, these two population groups make up the main demand for property in Brazil and will continue to do so at least until 2030.
Middle Classes Drive Spending
Brazil has one of the world’s fastest growing middle classes. According to the IPC Maps survey, the middle class (Class C) grew by an amazing 20% last year. This massive addition to the middle classes translates into bigger spending power – unsurprisingly, Class C expenditure will rise by 19% this year.
Class C makes up almost 50% of the population and their over 24 million households are a major focus of investment in Brazil. Numerous multi-nationals – Whirlpool, Nestle and Ford – have tapped into this potential with spectacular results for their sales. Banks and developers of Brazilian real estate have also been quick to realise this middle class potential.
Big Spenders in North East Brazil
The survey also looks at geographical trends in spending by consumers in Brazil and finds that trends are changing, reflecting the new importance of inland and northern regions. Brazil’s biggest spenders are in the south east, which accounts for 52.2% of the total. Second in the ranking comes the north east, confirming this area’s potential for growth and Brazilian investment.
Obelisk International recognises the power of the middle classes in Brazil, particularly Class C, the main market focus of investment in Brazil social housing and an investment priority for Obelisk International. The growth of Class C, both in size and purchasing power, ensures that Brazilian real estate investment potential will be realised for many years to come.
Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
Follow us on Twitter (Obelisk International) and LinkedIn (Obelisk International).
A recent survey by IPC Maps reported in Exame magazine finds that all social classes in Brazil are spending more. Total expenses on consumer goods from basic foodstuffs to property in Brazil is expected to reach R$2.5 trillion this year, a significant increase on last year.
A breakdown of spending shows that housing expenses account for a large proportion of family income. Brazilian families spend around 26% of their income on their homes with food and beverages the next largest expenditure (17%).
Population Pyramid Points to Boom in Real Estate
The IPC survey takes a look at the Brazilian population and finds Brazil has a young and growing population, two factors that explain the current boom in the Brazilian property market. They also point to further massive growth in the development of real estate as Brazil strives to provide housing for new households.
According to the survey, almost half of Brazil is aged between 20 and 49. In the younger age bracket (10 to 19 years of age), there are 34.6 million Brazilians. Between them, these two population groups make up the main demand for property in Brazil and will continue to do so at least until 2030.
Middle Classes Drive Spending
Brazil has one of the world’s fastest growing middle classes. According to the IPC Maps survey, the middle class (Class C) grew by an amazing 20% last year. This massive addition to the middle classes translates into bigger spending power – unsurprisingly, Class C expenditure will rise by 19% this year.
Class C makes up almost 50% of the population and their over 24 million households are a major focus of investment in Brazil. Numerous multi-nationals – Whirlpool, Nestle and Ford – have tapped into this potential with spectacular results for their sales. Banks and developers of Brazilian real estate have also been quick to realise this middle class potential.
Big Spenders in North East Brazil
The survey also looks at geographical trends in spending by consumers in Brazil and finds that trends are changing, reflecting the new importance of inland and northern regions. Brazil’s biggest spenders are in the south east, which accounts for 52.2% of the total. Second in the ranking comes the north east, confirming this area’s potential for growth and Brazilian investment.
Obelisk International recognises the power of the middle classes in Brazil, particularly Class C, the main market focus of investment in Brazil social housing and an investment priority for Obelisk International. The growth of Class C, both in size and purchasing power, ensures that Brazilian real estate investment potential will be realised for many years to come.
Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
Follow us on Twitter (Obelisk International) and LinkedIn (Obelisk International).
Labels: Brazilian middle classes, Brazilian real estate, investments, investments in brazil, Obelisk International
posted by Alison Kane at 1:36 pm
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