Despite higher interest rates, 2022 registered excellent results for real estate sales in Brazil. Transactions in many large cities reached high levels, resulting in an extremely positive year for the sector. The capital of Ceará was one example, as Fortaleza property sales posted their second-highest ever.
Busy year for Brazilian real estate
The latest report from the Brazilian Property Registry (Registro de Imóveis do Brasil/RIB) reveals that 2022 was a busy year for real estate in the country. Property sales were brisk in most large cities on the back of high demand after the pandemic.
Sao Paulo registered the most transactions in Brazil, with 266,782 in total, of which 68% were sales. The figure is the city’s second-best on record, just slightly behind 2021, the highest ever.
Fortaleza property sales brisk
The capital of Ceará in Northeast Brazil also registered its second-best year for property transactions. According to the RIB, there were 11,396 transactions in Ceará last year, the best on record after 2021.
As the graphic below clearly shows, Fortaleza property sales have followed a steady upward trajectory since late 2020. The city mirrors a nationwide trend of high transactions, and several other cities also registered their second-best results ever. They include Campo Grande, Santos and Joinville.
Positive year for the sector
According to Patricia Ferraz, Head of Research at RIB, the 2022 results “were very positive for the real estate industry”. “We are currently experiencing an exceptional time in which both supply agents, such as developers, builders and land developers, and demand agents, such as families, found opportunities and investment alternatives,” she said.
The latest results for sales in Brazil reflect those registered for mortgages last year. Loans totalled R$241 billion in 2022, slightly below the figure for 2021 but still the second-best year on record.
Ferraz also highlighted how some trends that emerged during the pandemic appear to be here to stay. “For example, the search for your own home, a healthier lifestyle with working from home,” she said. As a result, she believes these factors have created unprecedented dynamics in the market.
The latest results for sales in Brazil reflect those registered for mortgages last year. Loans totalled R$241 billion in 2022, slightly below the figure for 2021 but still the second-best year on record.
Looking forward to 2023
While the RIB report doesn’t offer predictions for property sales in 2023, the 2022 figures come when interest rates in Brazil remain high. Most analysts believe that rates will not rise further and may drop slightly as early as the summer.
Consequently, the President of the Brazilian Mortgage Association expects 2023 to register the third-best year on record. Given that demand remains high, the general impression is that the Brazilian real estate market will enjoy another buoyant year.
(Source: RIB)
