Ceará land experienced a record year for sales in 2020 as Brazilian buyers snapped up plots to build new homes on. The state reported a busy year for land, a trend that emerged throughout Brazil. Sales of plots in Ceará and the country as a whole reflected the high level of activity in the Brazilian property market generally.
2021 land sales off to a busy start
According to the Regional Association for Real Estate Agents in Ceará (CRECI-CE), 2021 has also started with brisk business for sales of plots in Ceará. The Association reports that land transactions in January were 125% higher than those in the same month in 2020. It expects a increase of 50% throughout 2021.
The rise in sales of Ceará land in 2020 saw prices increase exponentially. CRECI-CE estimates that in some cases, the price per square metre of land doubled last year in Ceará. The Association pointed out that this translates to a return of at least 10% on land in the state.
Brazilian land sales soar
The situation for land in Ceará mirrors that of Brazil as a whole. According to CRECI-CE, land sales saw a 33% increase across Brazil last year. Suburban areas in large cities and plots on residential developments were particularly popular.
The rise in sales comes as a result of the surge in demand among Brazilian buyers. Online platforms specialising in land transactions say that demand went up by 20% throughout the country in 2020.
Cheaper mortgages drive Ceará land sales
In tandem with the potential for high returns on investment, land has emerged on the Brazilian buyer’s radar for several other key reasons. Record low interest rates are a prime attraction for buyers. The SELIC rate fell to just 2% in the second half of 2020 making Brazilian mortgages the cheapest ever.
This in turn facilitates financing for potential buyers. And on the back of demand for land, several Brazilian banks have introduced specific lending products for the purchase of plots. The Caixa is one of them and has launched a buy-to-build loan for land buyers.
Opportunities for tailor-made properties
The third fundamental reason behind the sharp increase in sales of Ceará land lies in the buy-to-build principle. Purchasing a plot and building your own home on it allows the buyer to create a property exactly to their requirements.
Since the advent of the pandemic, Brazilian buyers have put increasing emphasis on homes with room for home offices and schooling as well as private outdoor space. Buying a plot allows for both possibilities.
Demand for land on high-end developments
Land also offers the advantage of easy entry. This is the case even in high-end developments, particularly if you purchase in the early stages of construction. Industry experts also noted a rise in the demand for plots of land on gated developments catering for higher-income demographics.
“We initially expected demand for this type of Ceará land to emerge over the next 10 years,” commented Guto Mota Mourao, a real estate agent in Fortaleza. He notes, however, that the pandemic has fast-forwarded this trend “by at least 5 years”.
Buy-to-build on Ceará land
Some of the best land investment in Ceará is available at The Coral in Flecheiras. The award-winning beach resort enjoys a privileged location on one of the most beautiful and quietest beaches in the area.
Since the arrival of Covid-19, Flecheiras has risen to the forefront as one of the most desirable holiday destinations in Ceará. As a result, demand for real estate in the area has surged.
Land investors has the opportunity for early entry with plots starting at R$214,509 (US$40,500) with finance options available (from US$790 a month). Expected capital growth lies between 10 and 15% a year.
Exit strategies for plots in Ceará
Exit strategies are two-fold. First, is the scope for resale to Brazilian buyers looking for land on high-end residential developments. And second, buying land at The Coral offers the investor the possibility to build a villa on the plot. The resort has a choice of designs, all conceived to offer maximum investment potential both for holiday lets and personal enjoyment.