According to the latest figures released by the Brazilian mortgage association (ABECIP), the Brazilian property market continues on its strong upward trend this year. Mortgage lending in Ceará performed particularly well in the first eight months with an increase of 138% in the value of loans.
In common with many countries, real estate in Brazil is experiencing a booming market this year. On the back of high demand and low interest rates, property is selling fast and almost every month, new home loan records are set.
Record lending in the first 8 months of the year
Mortgage lending in Ceará is no exception and in the first eight months of this year, the state broke yet another record. Between January and August, buyers took out loans for 10,810 units, up 138% on the same period in 2020. The total mortgage volume reached R$2.23 billion.
Loans registered a strong August when 1,379 units were bought with mortgages. This translates to an increase of 86.6% compared to last year. The total volume, R$305.1 million, saw a similar rise in 12 months.
Exceptional year for mortgage lending in Ceará
The state has outpaced the country in general throughout most of 2021. Ceará registered the third-highest increase in loans for the first half of the year. So far, June has turned out to be the best month for value of loans – they reached R$309.1 million – and May for volume with 1,532 units financed.
Analysts attribute the frenzied mortgage market to three factors within the Ceará real estate market. Firstly, the lack of supply is driving demand within the state. Second, many developers have launched new projects this year to respond to the lack of inventory, which is, in turn, stimulating demand. And lastly, mortgage interest rates continue to be low, encouraging more people to buy property.
Home loans in Brazil
The increase in mortgage lending in Brazil also continued to show high rises in the first eight months of the year. Between January and August, the value of loans totalled R$136,9 billion, up 107.7% in the year. Mortgages in August alone reached a value of R$21.01 billion, an increase of 11.8% on July and of 79.2% in the year.
Property price rises across the country
Real estate prices are moving in time to the increased activity in the market and 45 of the 50 largest cities in Brazil saw price rises in September. The Fipezap Index reported a rise of 5.17% in the 12 months and an average square metre price of R$7,768.
Fortaleza joined the general trend and property in the city experienced a 5.82% increase in the year to September. The latest uptick brings the average price to R$6,156. The most expensive districts for real estate in Fortaleza were Meireles (R$7,798 per square metre) and Engenheiro Luciano Cavalcante (R$7,191).