Optimism surrounds the Fortaleza property market based on the city’s pent-up demand and lack of supply, a situation that contrasts with many other cities in Brazil. This conclusion was reached by some of Fortaleza’s most prominent business people in a recent interview published in O Povo newspaper. This latest BRIC Group news article provides a summary.
The local O Povo newspaper regularly provides updates and analysis on the Fortaleza property market, and in its most recent instalment, the paper talks to three prominent entrepreneurs from the city. These were Marco Novas, an entrepreneur and engineer from Novaes Engenharia, Eduardo Gomes de Matos, an economist and partner at Gomes de Matos consultancy and Wilton Daher, the director of the Brazilian Institute of Financial Executives in Ceará.
All three claim to feel “expectant” and “optimistic” about the immediate future, for Brazil generally and for Fortaleza and Ceará in particular. They believe that the imminent changes about to take place in the Brazilian government can only be positive for the country. And they are also convinced that the Fortaleza property market is solid and well-placed for the future.
Pent-up demand for property in Fortaleza
Novas bases his optimism on what he calls the “pent-up” demand for property in Fortaleza. He says this exists across the board, regardless of income levels. According to him, whatever their income – low, medium or high – “everyone wants a better life with a better property”.
He says that Fortaleza is a city with a huge potential for growth and highlights one particular characteristic of its property market. Fortaleza does not have excess supply of property unlike many Brazilian cities. On the contrary, he emphasises that the supply of homes in Fortaleza is “within the limits considered to be healthy”.
Solid business model
Another unique characteristic of the Ceará property market is, according to Gomes, the fact that the construction companies within the state are locally-based and well-structured. Unlike many of the large developers in Brazil, those in Ceará and Fortaleza are not publicly traded and a good number are family-run businesses.
“They understand this business better than anyone else,” Gomes says in the interview, pointing out that developers in Ceará have “done their homework”. In addition, with the help of the Ceará Civil Construction Cooperative, they have applied good cost management. Like Novas, he also points to the strong demand underlying the Fortaleza property market.
Shortage of 400,000 properties in Ceará
Dehar further emphasises the pent-up demand and cites the figure of 400,000 units as the actual number of properties needed to satisfy demand in Ceará. He underlines the need for more credit in the market to facilitate the purchase of property and make it more accessible to more potential buyers.
When asked what a buyer should look for in a developer, Dehar is adamant that the main criteria is the credibility and legal security behind the company. The interview ends with all three entrepreneurs reiterating the investment potential behind property and their optimism for the short and medium-term outlook for the sector in Ceará.
“At BRIC Group, we agree with this outlook,” says Dies Poppeliers, Managing Director. “We too have identified this unique market where there’s strong demand across the board. We expect great things from the Ceará property market.”
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.