Luxury property in Brazil is currently riding a wave of huge demand. Wealthy executives and entrepreneurs throughout the country are scooping up million-reais properties as an investment asset and home. Recent figures point to one of the biggest booms in this market sector ever.
Luxury property sales soar
The high-end sector of the residential sector is traditionally resilient to economic downturn. During the pandemic, high-net-worth individuals are finding refuge in property assets and Brazil is no exception.
According to the Brazilian Developers’ Association (ABRANIC), contracts for new-build properties in Brazil went up by 10.5% in the year. The country’s financial capital, Sao Paulo, saw a particularly strong uptick in July when 4,300 new units changed hands. This represents an increase of 45.5% on June.
Fortaleza in the northeast state of Ceará registered the second highest rise in sales in July. 606 units were sold in Fortaleza, 43.3% more than June and 21% more than the same month last year.
Luxury property in Brazil sets record
One of the largest sales ever for luxury property in Brazil took place recently in Sao Paulo. A high-end apartment in the Jardines neighbourhood of Brazil’s financial capital sold for R$31.5 million. And at list price.
Beach locations in Ceará are experiencing similar trends in demand for luxury property in Brazil. A local agent recently sold a mansion in the beach resort of Jericoacoara for R$14 million.
Real estate agents in Brazil agree that demand is strong and growing. One broker operating in Sao Paulo told the Veja broadsheet that “the market is very hot”. She also commented that negotiations on price are rare because owners of luxury properties are not interested in accepting offers.
Reasons behind the boom
The current economic climate combined with new lifestyle trends are the main reasons why luxury property in Brazil is experiencing a boom.
Lower interest rates – they currently stand at their lowest on record in Brazil with further drops likely over the next 12 months. In this scenario, traditional strongholds for money such as bonds offer minimum returns. Property on the other hand offers a safe haven, particularly when it’s at the higher end of the market.
Travel restrictions – the covid-19 pandemic has closed borders worldwide and as a result, wealthy Brazilians have been unable to buy property in their own country. Instead, they have explored the market at home and discovered the value in luxury homes.
Beach and country locations – lockdown has also contributed to the uptick in sales of luxury property in Brazil. But buyers have turned their attention to the coastline, particularly the more remote areas away from the crowds. The same applies to country properties in Brazil.
Home office requirements – covid-19 restrictions mean that millions are people worldwide need home offices, Brazilian executives and entrepreneurs included. And wealthy buyers want generous offices in spacious homes.
Boom at The Coral
The 5-star resort is also experiencing this trend for high-end homes. Interest in all aspects of the development – from land plots to luxury villas via apartments – has been high since early March.
The Coral has also proved extremely popular with Brazilian holidaymakers, keen to make the most of their staycation on one of the quietest and most beautiful beaches in Northeast Brazil. The villa rentals at the resort have been very busy since they reopened after lockdown in early July and bookings are brisk for the forthcoming summer season.
Find out more about the investment options available at The Coral.
