Fortaleza, the capital of Ceará in Northeast Brazil, continues to hold a privileged position in the Brazilian property market. Not only is the city one of the few where prices are rising above inflation, Fortaleza also stands out in sales figures.
The national house price index for Brazil, FipeZap, has just published its findings for May. At country wide level, property prices have increased 11.38 per cent in the 12 months to May this year with the month of May registering a rise of 0.49 per cent, slightly below the rate of inflation.
However, there are certain pockets in the country like Rio de Janeiro and Fortaleza showing a marked acceleration. In Fortaleza, prices have risen 5.2 per cent since January and the year-on-year increase is 13.47 per cent. With one of the biggest hikes in the country, Fortaleza lies just behind Rio de Janeiro in the price rise ratings for May 2013 to May 2014.
Fortaleza is also home to some of the country’s most expensive property and its average price per square metre of R$5,380 is the ninth highest in Brazil. That said, housing in Ceará’s capital is considerably more affordable costing around half as much as in Rio de Janeiro where the square metre comes in at R$10,609.
In addition to strength in prices, the Fortaleza property market continues to show high sales figures maintaining a buoyant property market.
Analysts attribute the strength of the housing market in Fortaleza to two main factors: firstly, the city has seen massive infrastructure investment on the back of the FIFA World Cup (Fortaleza is one of the four Brazilian cities to stage a quarter final match). Improvements have included the widening and extension of boulevards, and an upgrade in public transport systems in the city. These have boosted house values in several key neighbourhoods within the city.
Secondly, Fortaleza has the added bonus of being Brazil’s favourite holiday destination, a status that guarantees value in property, particularly in the second home market. The vast influx of tourists expected over the next month for the World Cup will only enhance the city’s reputation as Brazilian premier holiday spot and by extension, the property market.