The latest data for Fortaleza property prices show a continuation of the upward trend that started several years ago. Over the last 12 months, real estate in the Ceará capital has increased in value by 4.72%, slightly below the national average but still ahead of inflation. On the other hand, rental rates in Fortaleza continued to skyrocket, with monthly rents registering the third-highest uptick in the country.
Prices rise across Brazil
The FipeZAP Index for January showed a 0.36% increase in property prices in Brazil compared to December. Homes with four or more bedrooms saw a slightly higher rise (0.48%). In January, inflation rose by just 0.07%, indicating that real estate values are once again outpacing the increase in the cost of living.
In yearly terms, house prices went up by 5.19%, considerably ahead of inflation at 4.39%. One-bedroom properties experienced the biggest uptick, with a 5.5% rise. Prices rose in all 50 cities in the Index, led by Maceió and Goiânia, where house values soared by 15.35% and 15.19%, respectively.
Property prices in Fortaleza
Real estate in the capital of Ceará continued along its upward trend, albeit at a slightly lower rate than other large cities in Brazil. In monthly terms, house prices in Fortaleza rose by 0.1%, while in annual terms, the increase was 4.72%. The latest rise brought average prices in the city to R$7,211 per square metre.
(Source: FipeZAP)
The chart above tracks property prices in Fortaleza since August 2011. It clearly shows the downturn during 2019 and early 2020, with the obvious recovery since 2021.
Rental prices in Fortaleza
While house price increases in Fortaleza remained on a par with those in Brazil generally, rental rates told a different story. At the end of last year, the city registered the third-highest increase in the country, with rental rates more than quadrupling the inflation rate.
Between January and December 2023, rents in Fortaleza skyrocketed by 21.95%. The figure is well ahead of the 16.16% national rate, which was also considerably higher than inflation. Fortaleza rental rate rises in 2023 almost mirrored those seen in 2022 when monthly rents soared by 21.33%.
Prospects for 2024
Ceará registered the highest number of new property launches in Northeast Brazil last year. In addition, sales values in Fortaleza reached record levels in 2023.
As a result, analysts are predicting another solid year for real estate in the region. This forecast will likely lead to further rises in Fortaleza property prices. However, although experts believe the increase will continue to be slow but steady.
(Source: FipeZAP)
