Despite an economic slowdown in the country, property in Brazil remains an excellent investment. ThatÃ¢â¬â¢s the view of two leading experts who point to a strong economy and a high demand for homes from a young population as reasons why prices in the South American country are set to remain strong.
Brazil a Ã¢â¬â¢very good place to invest in real estateÃ¢â¬â¢
Dr David Lynn, the chief executive and the founder of Lynn Capital Management, told nreionline.com that he remains bullish about the long-term future of the Brazilian property market. The expert believes that Brazil has actually performed very well since 2010 in relation to rival markets and that the country remains a vibrant environment for real estate investment.
"The entire world economy has slowed down, and Brazil's GDP growth slowed down in 2011 and 2012, but I still think Brazil is a very good place to invest in real estate particularly because the fundamentals are still very strong," he said.
"The economy, after the current slowdown, will increase its GDP growth rate. The demographics are still very strong. The industrial engine of Brazil is also still very strong and itÃ¢â¬â¢s got very good fiscal management."
Dr Lynn also pointed out that the demographic makeup of Brazil should also help support property prices. The median age of Brazilian citizens is 28.6 years, significantly younger than that of many other major countries.
"These younger people are going to be forming households and they're going to be demanding housing in all forms, they're going to be buying retail goods and theyÃ¢â¬â¢re going to be travelling more so hotels and hospitality will be in higher demand Ã¢â¬â and thatÃ¢â¬â¢s a big driver of economic growth," Dr Lynn commented.
Another expert, Andy Parsons, head of investment research at The Share Centre, also recently observed that the investment characteristics of Brazil are Ã¢â¬ËcompellingÃ¢â¬â¢. Mr Parsons explained that just under two thirds (62 per cent) of BrazilÃ¢â¬â¢s population are population under 29. "This is a young population with room for growth," he said.