Mortgage lending in Ceará began 2021 well and, halfway through the year, has just registered its highest volume on record. Between January and June, new mortgage applications topped R$1.65 billion, the most ever and the third highest in the country. Analysts believe that the rest of 2021 will see a similar pattern as demand for properties continues to grow.
Best six months on record
Mortgage lending in Ceará reached R$1.65 billion in the first six months of the year. According to the Brazilian Mortgage Association (ABECIP), the figure is the highest since records began in 1994.
It also represents an increase of 169% on the same period in 2020. In addition, it’s well above the national average (124%) and ranked as the third biggest uptick in the country. Only the states of Rio Grande do Norte and Pará registered higher mortgage lending volumes.
Did you know? The Ceará property market is set for 10% growth this year.
More mortgage lending in Ceará for new builds
In terms of numbers of units, mortgages were approved for 7,914 properties in Ceará between January and June. The figure more than tripled the 2,595 units in 2020.
Of the properties, most mortgages were for new-build homes with a total lending volume of R$55 billion. Loans for resale properties in Ceará reached R$24.7 billion and the construction sector took out mortgages worth R$17.4 billion.
High demand all-round
Competitive prices and low mortgage interest rates explain the surge in mortgage lending in Ceará in the first half of this year. In tandem, demand remains high and across all sectors.
“We are seeing that all types of properties are registering strong demand,” said Patriolino Dias, President of the Ceará Construction Union (Sinduscon-CE). “It’s just as high for social housing as it is for the high-end property sector.”
Surge in national lending
The record levels for mortgage loans in Ceará this year reflect a national tendency. 2020 was a boom year for lending in Brazil when volumes reached R$124 billion. However, 2021 promises to register even higher figures.
By June, mortgage lending had reached R$309 billion, increasing 124% on the first six months of 2020. The figure is also well ahead of the ABECIP’s original prediction of 57% mortgage growth for 2021.
According to the President of ABECIP, Christiane Portella, mortgage lending in Brazil has plenty of room for growth. It currently represents 9.8% of the country’s GDP, a figure that is far below regional averages. For example, in Chile, it is over 20%.