Buying to let in Brazil - investors cash in

Traditionally pyramid shaped, Brazil's society profile, due to sustained economic prosperity over recent years including the highest GDP growth rate at 7.5% for 25 years in 2010, is changing rapidly to a diamond shape commonly seen in the western world with some 33 million people rising to the middle class since 2003 alone.

 There is currently a 7 million housing deficit in Brazil with the majority residing in the North East of the Country. In addition to this many reports state that there is due to be a 20% rise in the country's population over the next 10 years.

Higher incomes and greater access to finance have had a significant impact upon consumer spending amongst Brazilian's with the nation now the fifth most important market for car manufacturers and 9.1 million looking to buy property this year alone.

Ray Withers, Director of international real estate agent Property Frontiers, comments:

"Whilst the rest of the developed world has suffered during the recession, Brazil has shone brightly as a safe haven for many investors due to the strength of its economy.

"Things are really changing in this BRIC nation with the aspirations of millions of Brazilian rising fast and suggestion made that the economy is on track to become the fifth largest in the world 5 years ahead of schedule, by 2016."

Access to finance has been a real turning point, especially for the Brazilian property market as recent reports suggest that 67% of the population are now in a position to buy a home, a massive increase from the 10% estimated in 2005.

The demand for home ownership is so great that over R$34 billion has been injected into the construction of residential property across the country in recent years - yet supply still fails to meet demand.