2017 was a year of transition for the Brazilian property market. The sector finished the 12 months with a flurry of new-build launches and sales. Property did particularly well in Northeast Brazil, the best-performing region and it’s here that 2018 has got off to a flying start.
Sales and launches up in 2017
According to figures from the Brazilian Construction Industry Chamber (CBIC in Brazilian) released in February, 2017 was a good year all-round for the Brazilian property market. Their data shows an increase of 5.2% in launches of new-build properties throughout the country. This brought the total number to nearly 82,500 over the year.
Sales also surged. The 9.4% increase in purchase transactions between January and December meant that almost 95,000 properties were sold in Brazil last year. This rise in sales also led to a marked drop in the supply – by the end of the year, the number of units on the market had fallen by 12.3% to just over 135,000.
Northeast Brazil registers best performance
Within the overall picture of the Brazilian property market last year, there are several shining stars. Brightest of all is Northeast Brazil where sales skyrocketed by 29% in the 12 months to December. Purchases were also strong in the Centre-West where they rose by 22.7%.
Commercial property market booms
After a 2016 characterised by a stagnant commercial real estate market in Brazil’s largest cities, Sao Paulo and Rio de Janeiro, the office sector also performed well in 2017. In the financial capital, office occupation soared by 279% last year. In Rio, it went up by 100%. Analysts believe the renewed interest in commercial property in Brazil is spurred on by the general improvement in the economy and outlook for the country.
Promising outlook for 2018
The strong figures for 2017 has led analysts to predict a promising outlook for the Brazilian property market this year. The president of the CBIC, José Carlos Martins, said that “supply is starting to drop” on the back of high demand. The Sao Paulo Construction Industry Union (SECOVI-SP) is predicting a hike of 10% within the market this year.
Fortaleza property has booming January
In keeping with the excellent performance in the Northeast in 2017, the Fortaleza property market also registered strong figures. Those for December were the best for three years and the metropolitan area saw some of the highest activity in the country.
2018 has got off to an excellent start with Fortaleza showing some of the best figures in the Brazilian property market as a whole. Data from 60 of the city’s largest developers published in the local daily Diario do Nordeste points to a 66% increase in sales in January.
The value of properties sold in Fortaleza also saw a sharp rise at the beginning of the year. Sales value reached R$239 million by the end of January, a massive 66% more than the same month in 2017 when value totalled R$140 million.
(Sources: ABECIP, Diario do Nordeste)
