2020 Sees record year for sales of land plots in Ceará

Land plots in Ceará registered record sales in 2020 when the market for buy to build soared throughout Brazil. Land saw brisk business last year as sales of plots mirrored the rise in activity in the real estate market generally. Analysts believe the trend will continue throughout 2021.

Prices double for land plots in Ceará

The Regional Association for Real Estate Agents in Ceará (CRECI-CE) reported a record year for sales of plots in the state in 2020. According to Tiberio Benevides, President of the Association, the high demand for land pushed prices up by twice as much in some cases.
He also reported that 2021 had started with a similar trend. “Sales of land in January this year are up 125% on those in the same month last year,” he said. He went on to point out that returns in excess of 10% were possible on land plots in Ceará in 2020.

Reasons for surge in interest

As well as high returns, buying land in Ceará also appeals to investors for other reasons. They include the possibility of creating a home tailormade to the buyer. Since the advent of the pandemic, many Brazilians have discovered the need for larger homes with private outdoor spaces. Building a home allows them to meet their own requirements.
Cheaper mortgages are another reason why land has risen in popularity. Record low interest rates makes financing more accessible. In addition, some banks such as Caixa are offering new models of mortgage loans specifically for buying land.

Uptick in sales of land in Brazil

The rise in sales of land plots in Ceará reflects the tendency in Brazil as a whole. The number of lots sold in the country during 2020 went up by 33%. According to online sales platforms specialising in land, demand rose by 20% last year throughout Brazil.

Demand for high-end developments

While many sales of plots were for land priced between R$90,000 and R$150,000, analysts have noticed an increase in demand for land on high-end developments. The uptick in demand comes on the back of shifts in lifestyle after the arrival of the pandemic.
“There are some luxury gated developments that we expected high demand for over the next 10 years,” said Guto Mota Mourao, a real estate agent in Fortaleza in Ceará. “However, the pandemic has brought this forward by at least 5 years.”
As a result, land agents in Ceará are expecting a growth of at least 50% in plot sales in the state this year.

Mortgage lending for land

Buyers of land plots in Ceará in 2021 will be able to take advantage of favourable mortgage interest rates. The SELIC, currently at 2%, is likely to stay low throughout the year and new loans for construction on individual plots will make buy-to-build investment more popular.
Ceará saw record mortgage lending figures in 2020. In December, loans financed 1,317 units, 37.7% more than the same month in 2019. The total value reached R$413.8 million, an increase of 114% in the year and the highest monthly level since June 2014.

Buy-to-build investment in Ceará

The Coral resort in Flecheiras offers some of the best land investment in the state. The 5-star resort has a beachfront position in one of the up-and-coming areas of the Ceará coastline. Plots start at R$214,509 (US$40,500) with finance options available from US$790 a month. Capital growth is expected to be between 10 and 15% a year.
As well as resale opportunities, buying land at The Coral also offers the investor the possibility of building a villa on the plot. The resort has a choice of designs, all conceived to offer maximum investment potential both for holiday lets and personal enjoyment.
Make the most of the surge in the rise in demand for land among Brazilian buyers and investors. Buy a plot at The Coral now and resell or build on later.
(Source: Badalo)