After a strong year all-round the Ceará property market registered its best December for three years. 2017 ended with more sales and launches of new-build properties leaving analysts predicting an even stronger 2018.
More sales in 2017
During the first ten months of the year the Ceará property market saw intense activity. Q2 registered particularly strong figures and in June, Fortaleza had the second highest price rises in the country. Between January and October, the value of properties sold reached R$1.6 billion, up 19% on 2016.
November was a quieter month but activity resumed in December. By the end of 2017, the sales value in Ceará state rose to R$1.9 billion, an increase of 14% on 2016. The figure also represents an 18% rise on the sales value in 2015.
The figures recorded in December, traditionally a quieter month for the Brazilian property market, were the best for this month in three years. One property agency representing 60 of the largest developers in Ceará, said that December had registered extremely positive figures.
New-build launches up in 2017
Ceará saw more property launches in 2017 with new builds attracting higher prices. In total, the number of new-build properties released onto the market last year rose by 77%. The value of new builds sold during 2017 rose by 36% compared to 2016.
Winds in favour of Ceará property market
Lower interest rates are one of the engines behind the strong growth in the Ceará property market. Brazil is currently enjoying record low interest rates and further cuts are expected this year as the country keeps inflation in check.
The improved economy is also contributing to the drive in property market activity. GDP growth in Ceará in Q3 last year (latest statistics available) stood at 2.79%, almost double the national increase of 1.4%. The state recorded a record trade balance in 2017 when it skyrocketed by 916.2%.
In store for 2018
Analysts believe 2018 will be even stronger for the Ceará property market. At the end of last year, the state supply of unsold new-build units stood at 6,900, down from 9,000 at the end of October. Developers and property agents forecast that the number of unsold properties will fall to 4,500 by the end of June with new construction starting in earnest for the rest of the year.
(Source: Diario do Nordeste)