Figures recently released by the Brazilian Construction Industry Chamber point to a record last quarter for sales of property in 2018. The surge in purchases of Brazilian real estate means that supply has fallen considerably. Analysts believe that buyers should make the most of opportunities in early 2019 before demand outstrips supply and prices start to escalate.
Launches and sales up in 2018
According to the Camara Brasileria da Industria da Construçao (CBIC), the number of new properties launched during 2018 totalled over 95,500. The figure represents an increase of 3.1% compared to 2017.
Sales of new Brazilian real estate, however, far exceeded launches throughout the year. In Q4, they went up by 4.4% to over 34,000 units. In 2018 as a whole, buyers purchased 100,787 new-build units, 19.2% more than in the previous year. According to figures from Cushman & Wakefield, sales of residential properties in Brazil generally increased by almost 10% during 2018.
CBIC research shows that sales in Q4 last year were the best on their records. The surge in interest in Brazilian real estate during 2018 points to a good year in 2019. José Carlos Martins, President of CBIC, said he was “very optimistic” about the market situation generally.
Supply plummets
As a result of the high volume of sales of new-build property in Brazil, supply dropped considerably. At the end of 2018, the level of new stock fell to 11 months. Martins described the supply as “very low”. At the end of 2018, some 124,028 new units were available on the Brazilian property market, 10.8% fewer than at the end of 2017.
CBIC research revealed that at the end of 2018 45% of available supply of new-build properties were under construction and 30% was move-in-ready. 2-bedroom apartments were the most readily available property type.
Brazilian real estate prices rise
Prices for property also rose in tandem with the surge in sales. CBIC figures point to a 3.7% increase in new-build prices between March and December last year. The Brazilian Mortgage Association (ABECIP) found that prices for property generally in the ten largest cities in Brazil went up by 0.64% in 2018. This was the first increase since 2015.
ABECIP research revealed that Fortaleza, the capital of Ceará in Northeast Brazil, posted the only real growth in property prices in 2018 compared to previous years. House prices in Fortaleza went up by 1.31% last year.
(Source: ABECIP)
