Rocket Economy and Real Estate

Rocket Economy and Real Estate

Brazil has the fastest growing economy in the world. Lula (elected on the socialist Workers Party ticket) has turned out to be great for capitalism. Lula’s fiscally conservative policies have strengthened the economy and the middle class. His social programs have boosted 36 million people from poverty to lower middle class.

What does this mean for real estate? It means demand. According to the National Real Estate Investor magazine http://www.nreionline.com , office rents jumped 25% from 2005 to 2006 and 28% from 2006 to 2007. Demand for retail space is still strong and demand for housing is really skyrocketing.

Brazil is an excellent example of what South America needs. For too long the wealthy people have had their status preserved by benefiting disproportionately when times are good and moving their money out of the countries when times are bad. Lula has used the national wealth to build the prosperity of everyone and expand the middle class (which is the backbone of any successful economy). Hugo Chavez is a perfect example of the old style South American caudillo. He is using the wealth generated by the surge in oil prices to bolster his own position and feed his own follies.





David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com