Analysts looking back over the last year for the performance of property in Brazil are unanimous. Market conditions in 2015 were much better than many had predicted since prices rose rather than fell. And for the coming 12 months, experts are forecasting the year of the buyer.
Brazilian property prices up
Figures for 2015 have taken many analysts by surprise. Across the board, property prices in Brazil went up by 2.5 per cent in the year to November 2015 according to the national price index compiled by FIPEZAP.
This nationwide number hides big regional variations. While in Rio de Janeiro property prices dropped by 1.3 per cent last year, those in Florianopolis rose by 8.3 per cent. Property in Fortaleza in Northeast Brazil also saw an impressive rise – 5.8 per cent in this case.
Brazilian property portals also report that prices in Brazil rose last year. Their latest figures for the first half of 2015 show that property prices went up by 4.1 per cent throughout the country.
Several markets continued their upward trend, most notably with luxury property in Brazil, a market sector that experienced a strong surge in both sales and prices during 2015.
A buyer’s future
Property market analysts believe that 2016 will be the year of the buyer. “2015 was a year of accommodation,” said Moacyr Schukster, president of Secovi-RS construction union interviewed in Jornal do Comércio, “but 2016 will be the year for the buyer looking for property.”
Bruno Oliva, economist for FIPEZAP, echoes this opinion and points out that prices will not yield much during the year. Lucas Vargas, vice-president of Vivareal claims that this year will be especially good for buyers “who can afford to buy on sight”, i.e. cash buyers. Foreign buyers of Brazilian property can reap particular benefit from both the opportunity to get a good deal for cash and from the best exchange rate for years.
Source: ABECIP, Jornal do Comércio