Covid-19 has transformed the way we live and do things. Many activities have now moved almost completely online and as a result, transactions take place in the digital world. They include buying property in Brazil where the market looks set to change as it moves further into 2021. However, as a recent survey shows, seeing the property for yourself is still important for many Brazilian buyers.
Current property scenario
Prior to the year that changed everything, the Brazilian market was showing signs of a strong recovery. 2019 was an especially buoyant year for sales, both of resale and new properties. It followed a period of downturn that lasted from 2015 and 2017.
Then 2020 arrived and with it, Covid-19. The state of confusion that followed the declaration of the pandemic and lockdowns throughout the world paralysed property markets across the globe. Including Brazil.
However, as it did in many countries, real estate recovered and returned stronger than ever before. In Brazil, signs of a comeback were already visible at the end of the second quarter of last year. 2020 ended on a high for the market.
Reasons for the strong market
Like many countries, Brazil experienced a frenzy of activity in its property market during 2020, a scenario that has continued into this year. Analysts attribute the sharp rise in sales and mortgage loans to three main factors.
Low interest rate
In 2020, interest rates in Brazil fell to their lowest ever (2%) leading to a sharp rise in mortgage lending. According to figures from the Brazilian Mortgage Association (ABECIP), loans went up by 57.5% in 2020.
Did you know? Mortgage lending in Ceará almost tripled in Q1 this year.
Better returns from property
Low interest rates equal low returns from bank accounts and funds. Many investors therefore decided to turn their attention to real estate where returns were higher.
New trends in housing
In tandem with cheap mortgages came a shift in lifestyle trends. Have to work from home and homeschool led many families to rethink their priorities for their property. As a result, the majority said that having clearly defined spaces within a home was important, according to a survey by DataZAP+.
Did you know? Changes in living trends have also boosted the market for luxury property in Ceará.
Between them, the three factors have contributed to the boom in buying property in Brazil. To the extent that some analysts believe that 2021 will be one of the best years ever for the Brazilian market.
New trends for buying property in Brazil
Covid-19 has also changed the way the Brazilian real estate market works, particularly how potential buyers behave. The DataZAP+ survey also looked at buying trends and discovered the following:
Digitalisation essential – pandemic restrictions have forced many activities online including looking for property. While before 2020 the Brazilian market was reasonably internet savvy, it is now more digital than ever in response to consumer demand.
Did you know? In their search for a home online, Brazilian buyers value above all professional photos of the property and its exact location.
The real thing still important – despite their reliance on digital listings, those buying property in Brazil still want to see the house for themselves. DataZAP+ found that 57% of potential buyers said they had visited a property in the last three months even with lockdown restrictions.