On the back of solid sales and high demand for housing, the Ceará construction sector is enjoying a buoyant year. Job creation is strong and according to regional analysts, the outlook is optimistic for the future. As a result, property in Ceará continues to appeal to investors.
Construction ahead of the economy
Civil construction remains one of the pillars of Brazil’s economy and job market, with the sector expanding ahead of GDP growth. According to the Brazilian Statistical Institute (IBGE), construction experienced an increase of 2.7% in Q2 this year, well over double the national GDP (up 1.2%).
Annual figures are even more impressive. Between Q2 2021 and Q2 this year, activity in construction surged by 10.5% compared to the previous 12 months, while the economy expanded by 2.6%.
Ceará construction sector soars by 10%
The Ceará construction sector mirrors national figures. According to the state association, Sinduscon-CE, it is forecast to increase by 10% during 2022 compared to 2021. Even higher growth is expected during 2023.
“The scenario is optimistic,” said Patriolino Dias, President of Sinduscon-CE, “and we expect the Ceará property market to stay hot.” Solid figures back up this prediction, including a general improvement in economic figures such as GDP growth and the slowdown in inflation, plus a brake on interest rate rises.
Increase in jobs and activity in construction
In tandem with its boost to the economy, the building industry is also driving employment. For example, in September, the construction sector created 31,166 new jobs, 16% more than the same month last year. Of these, 1,193 were in Ceará.
In Q3 this year, 27.2% of construction companies in Brazil said they had increased their activity levels. Reflecting this uptick, the Brazilian Chamber of Construction (CBIC) expects growth within the sector to reach 6% this year.
In the two years 2021/22, the increase in activity is expected to reach 16.28%, the highest since 2010/11. The figure indicates that the construction industry has exceeded pre-pandemic levels
Growth of second-home market
Holiday homes make up one of the drivers behind the Ceará construction sector. Demand for this type of property in the state has grown since the pandemic and continues to boost sales among local developers.
“This trend is here to stay because people have realised they can work from home,” said Dias. As a result, second homes have almost turned into principal residences, leading to a rise in sales that “should continue”.
445% rise in transactions
Sales of holiday homes in Ceará have surged in the last year. According to the latest Flash Imobiliário for the city of Fortaleza, transactions skyrocketed by 445% in the first nine months of the year compared to the same period in 2021. 720 units changed hands between January and December, with a sales volume of R$997 million.
“This is a prime moment for the property sector,” said Ricardo Bezerra, from Lopes Immobilis, author of the report. “Property is seen as one of the safest and most profitable ways of protecting and maximising investors’ assets.”
(Source: Ootimista)
