Mortgage loans in Ceará registered their highest monthly total ever in September. Not only did the figure surpass August’s record, it also represented a yearly increase of 156%. Pent-up demand after lockdown, consumer-friendly prices and rock-bottom interest rates are behind the sharp uptick in mortgage lending in the state.
September sets new record
Figures for mortgage loans in Ceará in August already reached a new high, but those for September have surged past them. A total of R$255.1 million financed purchases of homes in the state in September, the highest since 2015 and by extension, on record.
September’s statistics represent a 54% increase on August and confirm the trend this year for a busy property market. However, it’s the year-on-year figures that have caught analysts by surprise. The R$255.1 million for 761 properties is 156% more than in September last year.
Mortgage loans in Ceará in 2020
The property market in Ceará shows no signs of lagging; in fact, all figures point to quite the opposite. Mortgage lending so far this year totals R$1.19 billion, up from the R$911.1 million registered between January and September last year.
In the first nine months of 2020, mortgages were taken out for 4,696 properties in Ceará. This is a 30.9% increase on 2019. The figures lead analysts from the Brazilian Mortgage Association (ABECIP ) to expect a record year in Ceará. They calculate that the year will end with R$2.4 billion in mortgage loans, up a massive 76% on 2019.
The Ceará real estate market currently presents several attractions to buyers. First and foremost are rock bottom interest rates. The SELIC stands at just 2% making mortgage loans cheaper than ever. Monthly repayments are now around half of what they were in 2014.
As well as affordable mortgages, buyers also have access to a market with plenty of good deals. Many developers are offering attractive packages on completed complexes before they start building new ones.
“There are now opportunities on the market with fantastic and very competitive prices,” said Patriolino Dias, President of the Ceará Civil Construction Union (Sinduscon-CE). “This together with record low mortgages means sales increase as buyers make the most of the last units at lower prices.”
Mortgage lending up in Brazil
Property market conditions are broadly similar throughout Brazil and as a result, mortgage lending rose countryside. The figures saw an significant increase, although not as substantial as those seen in Ceará.
In Brazil, mortgage loans went up by 10.2% in September compared to August. The year-on-year figure was a much higher 70.1%. As was the case in Ceará, September 2020 marked a new record.
Banks for mortgages in Brazil
When it comes to mortgage offerings, the Caixa Economica Federal dominates the Brazilian mortgage market. So far this year, the bank has financed 18,900 units throughout Brazil and lent a total of R$5.6 billion.
Bradesco bank lies in second place with 7,300 units and R$2.3 billion financed. Close behind in third place is Itau Unibanco. This bank has lent R$2.1 billion so far this year in mortgage loans for 6,900 properties in Brazil.
For Brazilian buyers, the timing is perfect for mortgage loans in Ceará and many are taking advantage of the current conditions. At The Coral, we have seen unprecedented interest from buyers in the different products available at the resort.
Foreign investors too can make the most of the current financial situation. The Brazilian Real has been losing value against the US dollar for several months. This weakness translates into opportunity for international buyers who can get more for their money.
Prices for plots at The Coral currently stand at RS227,700 (around US$40,500). Turnkey villas start at R$704,700 (US$125,000/ €106,500) and apartments at R$425,000 (US$75,500/ €63,750). Find out more about investing in prime real estate in Brazil.