As Ceará starts to emerge from the covid-19 lockdown restrictions, the Fortaleza property market looks strong. Analysts are predicting high demand and steady sales on the back of the underlying housing shortage and low interest rates.
Strong start to the year
The Fortaleza property market started the year with big interest from buyers and a steady uptick in sales. By March, mortgage lending had already increased year-on-year. The number of units financed went up by 11.3% and loan value increased by 5.24%, according to figures released by the Brazilian Mortgage Assocation (ABECIP).
Then, the covid-19 pandemic hit and like most of the rest of the world, Ceará and Fortaleza went into lockdown. However, despite the situation, the number of units mortgaged in Fortaleza in April only dropped by 9.22%.
Appetite for buying
Now that the state is starting to reopen, Fortaleza real estate too returns to its normal activity. As a result, many analysts expect big interest from buyers from June onwards.
“People are starting to research the market,” said Patriolino Dias, President of the Ceará Civil Construction Union (SINDUSCON-CE). “We can see big appetite among buyers and there’s also a big housing shortage.”
New trends in Fortaleza property market
Tiberio Benavides, President of the Fortaleza association of real estate agents (CRESCI-CE), agrees. “We expect excellent market potential this year,” he said in an interview published in Diario do Nordeste. “We have several new launches in the pipeline with innovative characteristics.”
Benavides also pointed out that new trends are emerging in the Fortaleza property market. After the lockdown, he expects there to be higher demand for larger properties with outside space. “Buyers want a decent terrace,” he said, “and preferably somewhere to put up a hammock.”
Mortgage lending favourable
Low mortgage rates are another factor in favour of a strong 2020 for the Fortaleza property market. Interest rates are currently at a historic low after the Brazilian Central Bank dropped the SELIC to 3% at the beginning of June. Analysts believe a further cut of 0.75% is in the pipeline for later on this summer.
The lowest interest rates in Brazil ever open the doors to more favourable mortgage terms for homebuyers. Brazilian banks already widened the market with new mortgage products earlier this year. And analysts expect many homeowners to take advantage of the low rates.
Invest in larger homes
BRIC Group has also seen big interest in property in Ceará this year and the company expects this trend to continue throughout the remainder of 2020. The Coral Resort, located north of Fortaleza, offers a range of property options including plots, villas and apartments.
All are spacious and have private outdoor areas. Furthermore, each property takes full advantage of the resort’s one million square metres of natural land including pristine beaches, sand dunes and lagoons.
(Source: Diario do Nordeste)