Fortaleza property market sees exponential growth in 2020

Fortaleza property market sees exponential growth in 2020

After a strong year for purchases of resale homes, Fortaleza property market also registered an excellent year for sales of new developments in 2020. According to the latest figures, the volume of transactions went up by 5%. Analysts believe this exponential growth demonstrates the solidity of the market and augurs well for this year.

New-build sales in 2020

Statistics released by the Civil Construction Industry Union in Ceará (Sinduscon-CE) show that just over 5,050 new-build units were sold in the Fortaleza region last year. This represents 5% growth compared to 2019.

The highest volume of sales took place in the Aldeota, Parque Dois Irmaos and Messejana districts within Fortaleza city itself. In outlying areas, Eusébio and Maracanaú saw the most transactions.

The figures are based on a survey of around 250 developments and 83 developers. All show growth in sales and construction rate compared to 2019.

Rise in high-end property sales

While sales of mid to high-end new property in Fortaleza experienced a slow start to 2020, by the end of the year they began to speed up. “By November and December, their growth was substantial,” said Sergio Macedo, Director Research at Sinduscon.CE.

The value of sales of luxury homes in Fortaleza increased by 11% compared to 2019. The rise took the high-end sector to the levels last seen in 2015.

Sharp increase in new development

The renewal of demand at the higher end of the Fortaleza property market led to an increase in the number of new luxury projects. Developments of apartments classed as mid to high-end went up by an average of 325% in 2020.

In terms of launches of luxury homes, this translates to a rate of 98 units a month. This is almost four times the rate seen in 2019 when just 23 high-end units joined the market every month.

Prime time for Fortaleza property market

Macedo highlights the growth trends in all aspects of Fortaleza real estate. He also underlines the advantages of for homebuyers looking to purchase now.

“Nowdays, because of low interest rates, property investment is possibly the best option,” he commented. “For investors, rental returns are better than any other in the market and for those looking to buy, they can purchase a new build at a very low rate.”

Continuing trend in 2021

The rise in sales of new builds in Fortaleza mirrors those seen in statistics for resale properties and land in Ceará last year. Both sectors saw high increases and both have started the year on a strong footing.

Fortaleza property looks set for a busy year in real estate. The city and Ceará rank as one of the top five best places in the world to buy frontline beach property in 2021, particularly for investors buying in dollars.

(Source: Sinduscon-CE)