Official data shows Brazil’s real estate market grew by 1.32% in 2015
Newly released data from the FipeZap Index, which records property prices in 20 Brazilian cities, has shown that the Brazilian real estate market grew by 1.32% in 2015. Despite Brazil’s economy undergoing a financial adjustment, the real estate market has shown itself to be resilient, according to the FipeZap figures.
Brazil’s economy is contracting, but the rate at which it is happening is slowing considerably: so much so that the IMF believes that GDP growth will be 2% or higher every year from next year through to 2020. Thus far, real estate prices in many areas are holding firm in the face of the economic adjustment, making 2016 a good year for those looking to invest in property in the South American country.
The fall of the Brazilian real also makes 2016 a tempting prospect for real estate investors from overseas, who can get far more for their money than they could 12 months ago.
“This year is the year to buy and, unless the country enters into a brutal economic depression, prices in 2017 will tend to be higher, considering a degree of any recovery,” comments João da Rocha Lima, professor of real estate at the Polytechnic School of the University of São Paulo.
Paul Telfer, chief financial officer of property developer Ritz-G5, agrees.
“This year should see the Brazilian economy begin to balance out, ready for growth again from 2017,” he explains. “Of course, property prices fluctuate from area to area, but the overall interaction between the country’s economy and the real estate market is looking positive so far this year. 2016 is a buyer’s market so far as Brazilian property is concerned, particularly for those overseas who are enjoying the benefits of the current exchange rate.”
The country’s northeastern cities are tipped as some of the best investment areas when it comes to real estate in 2016. Many of Ritz-G5’s developments are focused in and around the northeastern city of Natal, which is known for its upscale shopping, pristine beaches and hedonistic nightlife. The city’s booming popularity has led to increased demand for real estate of all types.
Ritz-G5 sales director Miller Reis comments,
“What we’re experiencing in Natal is an increase in demand – and therefore prices – of specific real estate products, independent of the area of the city in which they are located. Today in our market the products that are most valued are the horizontal condominiums – there’s really strong demand for this type of real estate and as a result the price of this type of property rose by 6.65% during the last quarter of 2015 in Natal.”
Just off the idyllic Muriu Beach, Dunas de Muriu is a new extension to one of Natal’s most sought after luxury beachside condominium developments, Palm Springs. With 250 luxury, contemporary apartments and spectacular ocean views, as well as a spa, swimming pool, hot tub, sauna, beach, football courts and natural springs, Dunas de Muriu is precisely the kind of high end development that investors will be looking for in 2016.
For further details, contact the Ritz-G5 team on +44 207 183 7565 or visit www.ritz-g5.com.