Latest statistics for Brazilian property show signs of stable price growth throughout the country. In terms of mortgage lending, September’s figures are the best for 20 years, particularly in the state of Ceará, northeast Brazil, where home loans have increased by nearly 40 per cent this year.
According to the monthly FipeZap Index for October, prices in Brazil’s 20 largest cities have experienced a year-on-year rise of 8.23 per cent on average. This figure is higher in several cities such as Fortaleza, the capital of Ceará, where prices increased by 9.75 per cent and in Rio de Janeiro and Sao Paulo (9.54 and 9.26 per cent respectively).
The monthly change for October was 0.45 per cent nationally, reflecting the stability in the market after the sharp rises during 2013. In Brazil’s financial capital Sao Paulo, property market activity increased significantly in September after a quiet August. Some 2,787 units were sold in the city in September, 55.1 per cent more than the previous month.
But the biggest activity in the Brazilian property market is taking place in the mortgage sector where both the number and value of loans continue to rise to record levels. According to the Brazilian Association of Mortgage Lenders (ABECIP), financing for property purchase in September totalled R$10.3 billion, the highest for this month ever.
Nationwide year-on-year figures are equally buoyant. Compared to September 2013, the total amount lent is 12 per cent higher and the 50,100 units with new mortgage loans in September this year represent an increase of 13.3 per cent.
However, these national figures hide much more impressive regional variations and one of the star performer in mortgage lending is the state of Ceará in northeast Brazil. Here, home loans are experiencing spectacular increases on the back of strong economic growth in the state and corresponding employment opportunities.
In Ceará, mortgage lending from January to September this year reached a total of R$2.09 billion, a hike of 38.7 per cent over the same period in 2013. The number of units with mortgage financing has also seen a dramatic increase – in June 2014, 2,058 properties were purchased with a home loan in Ceará, almost double the number bought in June 2013.
Source: Exame.com, ABECIP-Associacao Brasileira das Entidades de Crédito Inmoniliário e Poupanca