Tracking Middle Class Investment in Brazil
The rise of the middle classes in Brazil is an ongoing phenomenon. It's also one that is driving many Brazilian investment opportunities.
O Observador Brazil 2011 report, published annually by Cetelem bank, tracks social and retail change in Brazil over the last year. It also gauges consumer trends for the forthcoming year and as such, offers an excellent insight in areas for investment in Brazil.
The report details household income and expenditure in different social sectors of Brazil and different geographical areas. It looks at spending on key consumer items like household appliances and cars as well as on major outlays such as mortgages and real estate in Brazil.
Middle Class Now 74% of Population
The latest Cetelem report finds that growth of the Brazilian middle classes during 2010 was particularly notable. Last year, 19 million Brazilians joined Class C from Class D/E and 12 million joined Class A/B. These spectacular jumps up the social ladder mean that 74% of Brazil's population is now designated middle class. This is a 51% hike on figures for 2005 when the Brazilian middle classes represented just 49% of the population.
The ongoing social change quickened in 2010 when Brazil's economy grew by 7.5%, unemployment reached a record low and foreign investment in Brazil soared. The middle classes can expect to grow quickly this year too since all the signs are pointing to more steady economic growth for Brazil.
Middle Class Investment
Brazil has evolved into a society of consumers and many manufacturers and retailers reported record sales last year. This increase in expenditure was seen across the board from health foods to property. And according to O Observador, spending intentions are similar for this year.
A high percentage of Brazilians claim they intend to purchase items such as cookers and cars this year. A similar number plan to install or upgrade telephone and internet connections, confirming the potential for online retailing in Brazil.
At the top end of expenditure, many Brazilians have plans to buy real estate this year. The intention to invest in property is particularly strong among the upper middle classes (Class A/B). In this social group, 20% state that they will "probably or certainly buy property over the next year". Given that Class A/B includes 42 million people, this translates into 8.4 million Brazilian real estate transactions, backing general expectations that 2011 will be another good year for property investment in Brazil.
Obelisk International is well aware of the huge potential behind Brazil's burgeoning middle classes. Their increased social presence and rising affluence means the best investments in Brazil will be those catering for Classes A, B and C.
And Obelisk International's latest Brazilian investment opportunity does just that - the portfolio of five different developments takes in the whole middle class spectrum. From Class C social housing to high-end Class A/B penthouses, this portfolio is the perfect middle class investment.
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