The Brazilian property market shows every sign of warming up with analysts talk of the “best possible forecasts” for 2019. They believe buyers will benefit from the winning combination. This includes attractive property prices, low interest rates and banks keen to approve mortgage loans.
The trend appears to be spreading nationwide. Sao Paulo, a city that tends to mark the beat for the country’s property market, has seen more sales and launches this year. Construction companies and developers in Ceará state in Northeast Brazil are also noticing stronger sales as 2018 comes to an end.
Both buyers and developers show greater confidence in the Brazilian property market now than they did at the beginning of the year. “People at the end of 2018 are confident in the new government,” said André Montenegro, President of the Civil Construction Union in Ceará (Sinduscon-CE). “So far, it has shown liberal policies and is business friendly,” he added.
Reflecting this rise in optimism, the Brazilian Construction Confidence Index (ICEI in Brazilian) reached 60.7 points in November. It increased by 8.6% on October and currently stands at its highest level since May 2012.
More sales in Ceará
Ceará state began the year with a supply of around 11,000 units. By late November, it had dropped to 7,000, a decrease of 36%. Analysts believe that by mid-2019, inventory levels will stand at around 6,000 in the state.
Sales in the latter half of the year have been strong. Purchases of all types of property including residential, retail and industrial in the capital of Ceará, Fortaleza, went up by 6% in October. For apartments alone, the increase reached 9%. In terms of value, the rise was even higher and reached 12%.
Another indication of a rising Brazilian property market come in new launches. By December, those in Fortaleza were already double the number of units launched in 2017. In Sao Paulo, the number of new units launched on the market at the beginning of October was higher than those for the whole of 2017.
Very positive forecast for Brazilian property market
Analysts from the development and construction sectors as well as real estate agents all coincide in high expectations for 2019. Buyers on the Brazilian property market have a winning combination, according to Joaquim Ribeiro, President of the National Association of Real Estate Agents (Fenaci), quoted in Diario da Regiao. “They can tap into attractive prices, low interest rates and banks keen to approve mortgage lending,” he said.
Back in Ceará, confidence also runs high for next year. “The forecast is the best possible,” said Ricardo Bezerra from Lopes Immobilis, one of the main agents in Fortaleza. “Our expectations are very positive for the Brazilian property market as a whole.”
(Sources: Diario do Nordeste, Diario da Regiao)