After a buoyant year in 2021, sales in the Brazilian real estate market continue to soar this year. The latest figures point to a 14% uptick in sales across the country between January and September, with sales in the high-end home sector experiencing a surge of 91.5%. In tandem, prices for new property in Brazil rose by 14.68% in the year to September.
All sales up so far in 2022
Sales of new builds in Brazil rose by 14% in the first seven months of this year. According to figures released by the Brazilian Association of Property Developers (ABRAINC), 97,475 units changed hands from January to September, up by 14% compared to the same period in 2021.
In terms of volume, the increase reached 19.4% in the year. Analysts expect this upward trend to intensify over the next few months due to the high number of launches in the Brazilian real estate market since 2020.
For the President of ABRAINC, Luiz França, the latest statistics show that the property market is currently enjoying “a good moment”. “As the numbers reveal, the sector continues developing well,” he said. “The fall in unemployment and rise in household income should bring even better results to the market.”
High-end sector riding high
The medium to high-end segment of the Brazilian real estate market is particularly busy. Some 26,522 properties within this sector were sold in the first seven months of this year, according to ABRAINC. The figure translates to an increase of 91.5% compared to 2021.
The luxury property sector has experienced strong sales throughout the year and across the country. Transactions involving second homes have soared in areas like Fortaleza in Northeast Brazil. 133 sales took place in August alone in the city, representing a 2,560% increase on the same month in 2021.
Prices rise in Brazilian real estate market
Against this backdrop of booming sales, new house prices continued their upward trajectory throughout Brazil. The latest figures for September from the Brazilian Mortgage Association (ABECIP) show a rise of 14.68% in 12 months.
The General Price Index for the residential property market (IGMI-R) found that prices for new homes increased by 1.62% in the month. The figure is slightly higher than the previous monthly rise of 1.32% registered in August.
Northeast Brazil sees biggest hikes
Ten Brazilian cities formed part of the ABECIP research and, of them, Recife in Northeast Brazil registered the highest rise in September. In this city, house prices went up by 2.20% month-on-month. Fortaleza, also in Northeast Brazil, saw an increase of 1.36% in property prices.
In year-on-year terms, the highest rise was in Curitiba, where prices increased by 16.54%. In Fortaleza, they went up by 11.16%.
In 2022, Fortaleza, Belo Horizonte and Recife stood out for price growth in the first nine months of the year compared to the same period in 2021. On the other hand, property prices in Sao Paulo, Rio de Janeiro, Porto Alegre and Goiania went down.
(Sources: ABRAINC, ABECIP)
