The number of middle and higher class citizens in Brazil has increased by more than 50m people since 2003. Since January 2009 alone, according to a study by FGV the top of the social pyramid grew 12.8% and the middle class (C) grew 11.1%, reaching a total of over 100m alone now living with middle class standards.
Importantly however, unlike inflationary growth in ‘developed’ countries that was experienced during the previous decade, Brazil’s growth is not based on increased debt. Stable inflation coupled with economic growth and wage increases have resulted in steady and sustainable growth.
Importantly for Brazil real estate investment, this will not result in a Brazil real estate bubble as still less than 5% of real estate value is mortgaged. For the detailed story click here.