The Fortaleza property market is currently riding a wave. The city registered the second highest price rise in Brazil during Q2 and experienced an excellent month of June. Holiday rentals too are on the up with properties on the best beaches in Ceará in high demand.
Strong Q2 for Fortaleza property market
According to quarterly data published by VivaReal, prices in Fortaleza rose by 6.42% in the year to Q2. The average price per metre reached R$4,702 in the city where prices went up by 2.49% between Q1 and Q2. Price increases were considerably sharper in some districts, led by Cidades dos Funciónarios where properties rose by 11.3%.
The quarterly price rise represents the second highest among the 30 cities that form part of the VivaReal statistics. In Brazil as a whole, prices fell on average by 1% between Q2 2016 and Q2 this year.
The Fortaleza property market also experienced a very strong month in June. According to the Flash Imobiliario data compiled by one of the city’s property portals, Lopes Immobilis, sales of apartments and flats rose in the city by 5% over the 12 months to June.
The total value of properties sold in Fortaleza reached R$111 million, up from R$99 million, a year earlier. This translates to a 12.12% increase. The month-on-month rise in value was 4%. The number of units sold between January and June this year totalled 1,112. These sales brought inventory levels down by 8.4%.
The most sought-after districts in the city were Guararapes, Aldeota and Papicu. These three neighbourhoods made up 46% of all sales on the Fortaleza property market. Meireles, a popular district with both residents and holidaymakers, registered the most expensive property in the city with an average of R$10,165 per square metre.
When the entire range of property in Fortaleza is taken into account, including second homes and commercial real estate, sales rose by 2% in the year to June. Prices went up by 8.3%.
“If anyone had any doubt about whether the real estate market in Fortaleza was reacting, there is the answer,” said Ricardo Bezerra, the Director of Lopes Immobilis, commenting on the figures.
Holiday rentals on the rise
While long-term rentals on the Fortaleza property market generally remained static during Q2, holiday lets are experiencing an excellent season. According to figures published in O Povo newspaper, demand for holiday accommodation in Fortaleza in July rose by 7%. This increase is attributed to strong domestic demand on the back of the high dollar that makes international travel more expensive for Brazilians.
O Povo reveals strong demand for holiday lets located on the best beaches in Ceará, specifically those situated within a 150km radius of the city. The newspaper quotes rates of R$200 a day for furnished apartments with a pool in a beach location.
“These figures show that the Fortaleza property market is, yet again, leading the rest of Brazil,” says Dies Poppeliers, Managing Director of BRIC Group. “We expect the demand for holiday homes and rentals to rise exponentially over the next year as more and more Brazilians seek beach locations outside Fortaleza.”
An investment company specialising in global real estate opportunities, BRIC Group is currently developing The Coral resort, in Northeast Brazil, a luxury beachfront resort. BRIC Group also offers US real estate investments including turnkey properties in Florida and Houston, and land plots in Florida. BRIC Group has been creating wealth for its clients since 1996 and has offices in Brazil, Dubai (consulting office), Hungary, Spain and the US.