The capital of Ceará state in Northeast Brazil ranks as one of the most expensive cities in the country. And like most other large conurbations, real estate values vary significantly from one district to another. The most recent statistics for property in Fortaleza reveal that some parts of the cities have experienced price hikes of over 14% in the last year. Rental rates have also increased in the city so far this year.
Annual price rise for property in Fortaleza
According to the latest FipeZap index for February, real estate prices have gone up in Fortaleza by 7.22% over the last 12 months. The latest increase – 1.18% in February – brings the average square metre price in the city to R$6,444.
Fortaleza ranks as the tenth most expensive city in Brazil to buy property, although its prices lie well behind Sao Paulo and Rio de Janeiro. In the country's first and second most expensive cities for real estate, Sao Paulo comes in at R$9,787 per square metre and Rio at R$9,682.
Most expensive districts for real estate
However, the overall average for the city hides significant variations in property prices. For example, in the most expensive district, Meireles, the average square metre costs R$8,546, on a par with values in Brasilia and Florianópolis.
Property in other parts of Fortaleza has considerably lower values. For example, in Engenheiro Luciano Cavalcante, the average home costs R$7,509 a square metre and in Manuel Dias Branco, R$7,331.
In six of the top ten most expensive districts to buy property, prices have seen upticks of over the city's average. The increase is particularly pronounced in up-and-coming districts such as Dionisio Torres where real estate prices have risen by 14.6% over the last year. Also in double figures are Meireles (up 12.8%) and Papicu (up 11.6%).
Still bona-fide bargain prices
According to Forbes, despite the recent price increases in Fortaleza property, it continues to "appealing property options at bona-fide bargain prices". The city ranked as the broadsheet's top six destinations for real estate investment in 2022 in the world.
The article described Fortaleza as "the gleaming centrepiece of Brazil's northeast coast" with a 12-month tourist season. As a result, Forbes tips the capital of Ceará as "a top choice for a cash-flowing investment".
By her calculations, dollar-buyers are looking at 7% extra purchasing power this year. And as a result, "even at the luxury end of this market, you can buy for less than US$100,000".
Fortaleza rentals also up
The FipeZap index for January also found that rental rates rose in Fortaleza by 1.06%, the third-highest in Northeast Brazil. The latest increase brought the average rental rate to R$19.20 per square metre.
In annual terms, Fortaleza posted an uptick of 11.11%, the fourth biggest rent rise for state capitals in the country. Rentals in Curitiba saw the highest increase (up 15.90%), followed by Florianópolis (+12,48%) and Recife (+11,66%).
(Source: FipeZap, Forbes)
