After a year of busy sales and some of the highest price rises in the country, Ceará property market looks set for more of the same in 2018. Constructors, real estate agents and banks all believe that this year presents some of the best opportunities for the sector.
Construction companies in Ceará are expecting a very busy 12 months. André Montenegro, President of the civil construction union (Sinduscon-CE), set out current market conditions in a recent interview in the Diario do Nordeste newspaper.
He expects a very positive year with strong sales with a “big return of mainstream buyers”. One of the reasons behind this comes in the fall in interest rates. The current rate of 7.5% is the lowest for a decade and analysts believe it could drop still in the near future. “The construction sector will see more sales as purchasing power increases among consumers because of the fall in interest rates,” he said.
Ceara property market at its most attractive
Apolo Scherer, President of the Ceará real estate association (Creci-CE), broadly agrees and takes the positive outlook a step further. Scherer thinks 2018 will be the best time in recent history to buy. “Never in the last 20 to 30 years have prices been so competitive and buying conditions so attractive,” he said.
One of the big players in construction in Brazil, MRV Engenharia, has set its sights on Ceará this year. The company will be launching 3,588 units with an investment value of R$360 million. Most of the housing units come under the umbrella of the government social housing scheme, Minha Casa Minha Vida. For MRV Engenharia, now “is the perfect time to buy land in Ceará”.
A survey carried out among Brazilian construction companies generally found big interest in investing in Ceará in 2018. According to the Brazilian Association for Real Estate Development and Tourism (ADIT), 30% of constructors were planning to build in Northeast Brazil this year.
On the Ceará property market in 2018
Sinduscon-CE believes that 2018 will consist of two clearly defined stages for Ceará. Developers will concentrate in the first half of the year on selling the 9,000 units currently on sale in the state. From July onwards, the property market will move into new launches.
The latest figures available show Ceará property market has a strong second half of 2017. Total sales rose by 26% at the end of September and sales of apartments in Fortaleza went up by 8% between January and October. Sales in the first ten months of the year grew by 32% on the same period in 2016.
Brazilian property market this year
The property market throughout Brazil also looks set for a good year. Record-low interest rates and new mortgage products promise to appeal to consumers and heat up the market. La Caixa, one of the largest banks in Brazil and the biggest mortgage provider, announced a low-interest mortgage package at the beginning of the year. Under the conditions of the Pro-cotista product, property buyers can take out loans for up to R$950,000 with a maximum interest rate of 8.66%.
“Make the most of now,” said an article published by the Brazilian Mortgage Association (ABECIP). “Prices are low but as supply drops, the square metre price will only go up.”
(Source: Diario do Nordeste, ABECIP)
