Why young population support house prices in Brazil

  • 12 years ago
  • Uncategorized

Despite an economic slowdown in
the country, property in Brazil remains an excellent investment. That’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 ’very good place to invest in real estate’

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 it’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 they’re going to be
travelling more so hotels and hospitality will be in higher demand – and that’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 ‘compelling’. Mr Parsons explained
that just under two thirds (62 per cent) of Brazil’s population are population
under 29. “This is a young population with room for growth,” he said.


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