4 REASONS WHY BRAZILIAN REAL ESTATE LOOKS SO GOOD FOR 2021

Share on facebook
Facebook
Share on pinterest
Pinterest
Share on linkedin
LinkedIn
Share on twitter
Twitter

Brazilian real estate thrived in 2020. Despite fears that the pandemic would send the market crashing, the exact opposite happened. Sales surged across the country as Brazilians rushed to buy larger homes with bigger outdoor areas.

As a result, last year ended on a high and analysts expect a repeat performance for this year. In this article, we look at why Brazilian real estate did so well in 2020 and why the same reasons suggest a similar performance in 2021.

Low mortgage rates

The benchmark interest rate (known as the Selic) for mortgages in Brazil dropped to just 2% in 2020. The low rate made financing a home cheaper for thousands of Brazilians buyers who made the most of more affordable mortgages.

Cheap lending was one of the major reasons behind the surge in sales of homes in Brazil last year. The Brazilian Central Bank reported record lending in November. The total financed for real estate loans reached almost R$700 billion.

Interest rates are expected to remain low throughout 2021. This will give even more Brazilians the chance to take advantage of favourable lending terms.

Boom in new developments

Buyers sought out new Brazilian real estate more than ever in 2021. The Association of Developers (Abrainc) reported a surge in sales in Q3 last year. Between July and September, the value of sales of new property went up by 39.7% in the year.

September was a particularly buoyant month for sales. Some 13,500 units were sold in the month, the highest figure since May 2014. Developers reported a busy end to the year as well and analysts believe the trend will continue in 2021.

Important part of the economy

Like all economies worldwide, the Brazilian has suffered since the outbreak of the pandemic. However, the real estate market and civil construction have been engines driving economic growth since May last year.

The latest figures for Brazilian real estate construction show that its contribution to the national GDP growth has grown significantly. In Q3 last year, it went up by 5.6% compared to the previous quarter. In November, there were 400,000 more people working in the sector than in the same month in 2019.

Analysts believe that new-build construction will continue to drive the economy in the first half of 2021. Demand shows no sign of abating and the property market is likely to continue its upward trend while other sectors of the economy recover more slowly.

Discover six reasons to invest in property in Brazil this year.

New trends in Brazilian real estate

The final reason why the Brazilian property market has excellent prospects for 2021 lies in the new trends for living. Homeowners worldwide have discovered the value of larger homes with private outdoor space. And the Brazilians are no exception.

Just as they did from June 2020 onwards, Brazilian buyers will prioritise spacious living in quieter areas. New-build properties have already anticipated this trend by offering configurations with space for home offices and schooling.

Prime real estate for 2021

Brazilians will continue to look for larger and higher-end properties during 2021 both as a home and a holiday house. As a result, villa holiday lets in quiet beach locations will continue to attract their attention.

The Coral resort is one of them with a variety of different investment options. They start at just US$40,500 for a plot (and the chance to take advantage of early entry) and include two apartment investments with guaranteed returns.

Find out about investing at The Coral and making the most of Brazilian real estate in 2021.

More to explore

The Coral and booking.com Travellers Review Award

The Coral receives Traveller Review Award 2021

The Coral has just received the Traveller Review Award for 2021 for one of the top ten places to holiday in Ceará. The accolade places the 5-star holiday resort up with the very best in the world this year.

examples of Ceará land and buy-to-build villas

CEARA LAND HAS BOOM YEAR FOR SALES IN 2020

Ceará land sales surged in 2020 on the back of strong demand. Analysts report an extremely busy start to the year and expect sales to go by 50% throughout 2021. Reasons for the appeal for plots in Ceará include high returns (at least 10%), cheap mortgages and the opportunity to buy a tailormade home.

carnival in Ceará

NORTHEAST BRAZIL NEW FAVOURITE FOR CARNIVAL 2021

Northeast Brazil is the Brazilians’ favourite place to spend carnival 2021. Seven of the top ten preferred destinations are in Northeast Brazil and Salvador and Maceio have displaced Rio de Janeiro, the usual king of carnival. The shift in trend bodes well for Ceará and in particular, self-catering accommodation in quieter resorts.

Scroll to Top
Please complete the form below:








* Your information is 100% secure with us and will never be shared with anyone.