The latest annual review of Brazilian property has just been published and its findings confirm that the market for new builds continues to strengthen. Furthermore, the report highlights Northeast Brazil as one of the fastest growing areas in the country.
The Anuario do Mercado Imobiliario Brasileiro 2013, compiled by Lopes Real Estate Consultancy, takes a snapshot of the property market in 134 municipalities. Between them, they include 36 per cent of the population and 53 per cent of Brazil’s GDP.
Total New Construction
The report found that 196,292 new units entered the Brazilian property market last year with a total value of R$90 billion. Residential housing was by far the most active sector with 85 per cent of the total market. Commercial construction accounted for 11 per cent of new builds with hotels taking up the remaining 4 per cent.
The average square metre price for new-build housing came in at a nationwide average of R$5,560, a 9 per cent increase on 2012 when new homes averaged R$5,110. This figure varies hugely from one municipality to another with the most expensive property found in Sao Paulo with square metre prices of R$8,470. Shortage of building land and Sao Paulo’s position as financial centre of Brazil explain this high figure. The vast majority of residential units had 2 or 3 bedrooms, a statistic that confirms the Brazilian market trend for larger homes.
Most Expensive Cities
The report locates Brazil’s most expensive properties in cities in the southeast. Sao Paulo city, Niteroi (in Rio de Janeiro district) and Santana de Parnaiba (Sao Paulo district) take the top three positions with prices considerably in excess of the national average.
Further down the table, however, the shift moves to the northeast and a total of three cities in the region feature in the top 20. The first is Recife, capital of the state of Pernambuco, and the fourth most expensive city in Brazil to buy property. The average price in the city last year was R$6,600.
At the top of the second half of the table is Fortaleza, capital of the state of Ceará and one of Brazil’s top tourist destinations. The report confirms Fortaleza’s position as one of the places in Brazil with highest demand for property. The average square metre price in the city in 2013 was R$5,710 with a 50 square metre home costing an average of R$285,500 and a 100 square metres R$571,000.
Completing the northeast’s presence on the table is Jaboatao dos Guararapes, also in Pernambuco and ranked as the 14th most expensive city to buy property in Brazil.