The number of ultrarich households in Brazil continues to grow despite the country’s deep economic troubles, including a currency rout and high unemployment.
A new report by WealthInsight says that the number of ultra-high-net-worth individuals in Brazil, those with more than $30 million in assets, is expected to grow by 15.7% in 2019, to 4,950, from an estimated 4,220 in 2014.
“This is partly due to a shift in the source of wealth to financial services as well as slicker wealth management practices stowing funds offshore,” says Oliver Williams, Head of WealthInsight. The wealth sector tracker headquartered in London found that 17.7% of multimillionaires in Brazil acquired their wealth from financial services.
When it comes to places to invest their wealth, Brazilians have long favored real estate.
Real estate was the largest asset class for Brazilian high-net-worth individuals in 2014, growing from 27.9% of total assets in 2010 to 33.8% last year. Much of this increase was recorded in residential property, which expanded from 18.5% to 23% of total assets over the same period, according to the WealthInsight report.
Brazilians have traditionally ranked among the top five countries who search for U.S. properties online, especially in South Florida, where they are one of the top foreign homebuyers as well, according to data from the National Association of Realtors and the Miami Association of Realtors.
WealthInsight predicts that real estate interests by Brazilian HNWIs would expand at a slower pace due to “increasing volatility in the world economy and growing interest in other asset classes” and represent around 27.3% of total assets by 2019.
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