Price rises for property in Fortaleza during Q3 this year were the second highest in the county and well above the inflation rate. Rental rates also rose in this Northeast Brazil capital where demand for property easily exceeds supply.
The latest quarterly property price index released by an online real estate portal shows stagnancy in many parts of Brazil where house rises in most areas are rising at rates below inflation or decreasing. Property in Fortaleza, capital of the state of Ceará in Northeast Brazil, is one of the few exceptions. Between July and September this year, prices in the city rose by 6.1 per cent compared to the previous quarter, the second highest rate in the country behind Porto Alegre with an increase of 6.3 per cent.
Most expensive districts
The survey found several neighbourhoods in Fortaleza where price hikes were considerably higher than the city average. The biggest increase in prices was seen in Agua Fria, a new and expanding residential area to the east of the city centre. Property in this part of Fortaleza went up by 8 per cent. Prices for homes in Benfica, a neighbourhood south of the city centre, rose by 7.9 per cent while property in Fortaleza centre increased by 7.8 per cent.
The most expensive districts to buy property in Fortaleza were Mucuripe and Meireles, both front-line beach neighbourhoods and highly desirable as a result. Here, square metre prices averaged R$7,429 and R$7,042 respectively. Average prices for property in Brazil reached R$4,865 in Q3 this year with the highest seen in Brasilia (R$8,243) and Rio de Janeiro (R$7,262), currently one of the most popular places to buy property in Brazil because of next year’s Olympic Games.
The most desirable neighbourhoods for buyers in Fortaleza were Messejana, a middle-class district located south of the airport, and Meireles. Both districts also topped the list of desired locations for rental properties in Fortaleza too.
Demand above supply
Properties in Fortaleza priced up to R$350,000 were in the highest demand in Q3, although supply of property in the city across the board falls short of demand. According to the Index, while 66 per cent of buyers in the city were looking in this price bracket, only 34 per cent of Fortaleza property meets this criteria, a shortfall of almost half.
This imbalance is reflected in the Fortaleza rental market. The city saw the second highest rise in rental rates in the country in the three months between July and September. The monthly rental for Fortaleza properties rose by 5 per cent, second only to Florianopolis (6 per cent). The city of Joinville in the state of Santa Catalina was the only other Brazilian city to see an above-inflation rise in rental rates.
The index is compiled using data from the leading property portal in Brazil and publishes quarterly price indices for 30 cities throughout the country. Each index takes data from over 3 million properties in Brazil.