The Fortaleza property market has started the year well. In tune with the general trend within the Brazilian market as a whole, volume and value of sales went up sharply in Q1 this year. The trend was particularly pronounced within the high-end sector. Prices in Fortaleza also rose in the year to March, prompting analysts to declare the city as one of the best places for property development in Brazil.
Sales values up
One of the best indicators of high activity in the Fortaleza property market comes in the figures for sales values during the first three months of this year. According to the Flash Imobiliario report issued in late April, the value of all properties sold in Q1 totalled R$342 billion. The figure represents an increase of 29% on the same period in 2018.
The report showed a particularly strong uptick within the high-end property sector. Luxury apartments in Fortaleza are reportedly selling fast – one of the latest developments to enter the market sold 60% of its units off-plan within three months of its launch.
Sales up in Fortaleza property market
Along with the 29% rise in the value of sales goes the increase in the number of sales. Between January and March, sales within the city went up by 10% compared to Q1 2018. The pattern so far this year mirrors that seen in 2015, one of the best years ever for the Fortaleza property market. On the back of this, analysts believe figures for 2019 will be similar.
The city has experienced a marked reduction in supply over the last 15 months. By the end of 2018, the supply of new-build property in Fortaleza had dropped to just 7,000 units, almost 40% less than at the end of 2017. Supply is expected to drop still further this year and should stand at 6,000 units at the end of June.
Prices up in Fortaleza
After a year of very moderate increases, Fortaleza property market has entered a new phase in 2019. According to Imovelweb, prices for property in the city went up by 3.6% in the year to March. The latest increase brings the average square metre price to R$5,135.
Price hikes were considerably higher in specific districts of the city. In SER III, property prices saw a rise of 14.4% while those in SER II went up by 4.3%. Meireles remains the most expensive place to buy property in Fortaleza. In this district, the average square metre price stood at R$7,262 at the end of March.
Best for Brazil property development
Based on the figures in the latest survey, the CEO of Imovelweb, Leonardo Paz, believes that Fortaleza represents one of the areas with the best potential for property development in Brazil.
“With the latest investments in infrastructure and large-scale residential and commercial construction, the Fortaleza property market has seen high increases in value,” he said. “The trend is for this to continue in the area, one of the places with the highest potential for property development in Brazil.”
(Sources: O Lagoa and O Povo)
