High-end Brazilian real estate continues to ride the crest of the wave this year. Buoyant demand is driving the sector, which skyrocketed sales by 109% in the first quarter of this year. Analysts attribute the surge to investors choosing property as a safe asset and one that offers actual returns in the long term.
Strong first quarter for property
In common with many countries in the world, Brazil is currently experiencing a booming property market. The latest figures for Q1 this year show proof of the solid market.
According to the Brazilian Association of Real Estate Developers (ABRAINC), new-build transactions in Brazil rose by 6.2% in the first three months of the year, compared to the same period in 2021. In total, 36,982 new units changed hands.
High-end Brazilian real estate sales surge
The high-end sector led the market, encompassing properties with medium to high prices. This type of home sales soared by 109% between January and March to reach a total of 9,553 new units.
In tandem with increased demand, launches of high-end Brazilian real estate also experienced a significant rise in Q1. Nearly 27,000 new luxury units joined the market, a 35.6% uptick on Q1 2021.
Further proof of the excellent state of the luxury market comes in the latest decrease in cancellations. The rate of cancelled reservations for high-end new builds fell by 1.7% in the first three quarters of this year.
Real estate leading the Brazilian economy
The President of ABRAINC, Luiz França, believes that the figures demonstrate the strength of the property market. As a result, the real estate sector is one of the major players in the economy's recovery.
Pent-up demand lies behind much of the current drive in the market at all price entry levels. However, as Patriolino Dias de Sousa, President of the Civil Construction Industry in Ceará (Sinduscon-CE), points out, the most demand lies in the upper echelons.
Property as safe as houses
França also underlines the perception of property as a safe asset. “Brazilians see the purchase of a property as a way of protecting some of the assets from high inflation,” he explained. Moreover, real estate also offers the opportunity for real returns in the long term.
High-end Brazilian real estate developments appeal to increasing numbers of buyers and investors as an alternative to more traditional financial investments. A recent survey on buyer intention in Brazil revealed that 34% of those interviewed plan to buy within the next 12 months.
(Source: ABRAINC)
