Sales of new property in Ceará skyrocketed in July confirming that the market is back on track. The surge of transactions means that supply in the state is dropping fast and scarce in some areas of Fortaleza. Ceará also notched up the third consecutive month of increases in mortgage lending.
Surge in sales in July
The latest statistics for property in Ceará show that the market in the state has returned to pre-pandemic levels. According to Flash Imobiliario, issued by Lopes Immobilis every month, Ceará saw an annual increase in sales of 78% in July.
The general sales value (PSV in Portuguese) went up by 110% in the year to reach R$145 million. The figures confirm the trend seen during lockdown when interest in property soared as more families saw the need for larger homes. New properties generally fulfil this requirement better than resale.
Mid to high-end sectors the most sought-after
Sales of property in Ceará were particularly busy at the mid and high ends of the market. Sales of new homes within the price bracket of R$350,000 to R$700,000 totalled 69 units. Those in the high-end sector (priced at over R$700,000) reached 50 units.
Within the capital of the state, Fortaleza, Guararapes was the most sought-after district. In second place was Aldeota.
Shortage of property in Ceará
The high demand for new property in the state has led some experts to point to the beginnings of a shortage in supply. In particular, the second home market is showing signs of scarcity. Homes with 65 to 150 square metres are now in short supply.
The current situation has prompted industry players to predict a strong year ahead. “We should start 2021 well,” said Armando Cavalcante from the Federal Association of Estate Agents (COFECI in Portuguese). “We will see the rehabilitation of the property market.”
Rise in mortgage loans
In tandem with the rise in sales, mortgage lending has also experienced a surge in Ceará. July registered the third consecutive month of increases in loans. According to the Brazilian Mortgage Association (ABECIP), some 600 properties in Ceará were financed, an increase of 25% on the same month last year. The value of mortgage loans reached R$159 million in July, up 26% in 12 months.
To date, buyers have received mortgages for 3,196 properties in Ceará, an increase of 15% on 2019. The value financed has risen to R$771.9 million, up 9% on the same period last year.
Favourable conditions to buy
The interest rate for Brazilian mortgages has never been lower, a factor that buyers are making the most of. Banks are also offering better mortgage products with lower loan-to-value requirements as well as the cheapest financing ever.
Record low interest rates and the demand for larger homes lead experts to predict a busy autumn for property in Ceará. As a result, developers are now reconsidering plans for new construction that they put on hold at the start of the pandemic.
BRIC Group reports busy activity on its high-end development at The Coral on the beach just north of Fortaleza. The 5-star resort offers a range of investment options including villas, apartments and land, and interest has been higher than ever over the last few months.
(Source: Diario do Nordeste, Focus.Jor)