Bricks and mortar have proved to be one of the mainstays of economies worldwide during the pandemic. Brazil is no exception, and the sector has shown huge resilience since 2020 despite the challenges of rising inflation and interest rates. Analysts expect the Brazilian real estate market in 2023 to continue in a similar vein, but with three clear trends.
In this article, we summarise three more predicted tendencies for this year. Earlier in the year, we discussed underlying trends for 2023, including an increase in high-end property sales and more foreign investment.
Buy-to-let key trend in the Brazilian real estate market in 2023
Industry experts expect buy-to-let to emerge as a key trend this year. While the model isn’t new, renewed demand from younger generations will boost its potential during 2023. Millennials and Generation Z will form the main pillars of this new demand over the next five years.
The urge to own a property in Brazil has also decreased slightly in recent years, particularly among new households who prefer the more flexible option of renting. In addition, Brazil's chronic lack of housing adds to buy-to-let potential.
New-build properties on the rise
Data for new-build properties in Brazil last year reveals a sharp increase in the number sold compared to resale homes. For example, between January and June, new-build transactions rose by 10% compared to a drop of 2% in sales of second-hand homes.
Analysts attribute this trend to the increase in investment and the desire to own something new. As a result, they believe it will form one of the pillars of the Brazilian real estate market in 2023.
The rise in the younger population also explains the phenomenon behind the surge in sales of small, new-build properties. Older properties often fail to meet the requirements of young singles, for example. However, new design caters specifically for emerging preferences among buyers.
Sustainable construction
Environmentally friendly construction forms the backbone of many projects in Brazil, and this trend will continue during 2023. However, wood engineering will emerge as one of its key components.
This type of wood is made from processed hardwood that can be used as a prime building material. Analysts expect this trend to explode in the Brazilian real estate market in 2023 because it offers high performance and sustainability.
As a result, wood engineering can be used in all types of properties, independent of their price. It also allows developers to reduce construction time, and its initial processing reduces carbon emissions, making it sustainable. In addition, it’s a renewable construction material, ticking the box for environmentally friendly new homes.
(Source: ABECIP)
