July Real Estate Sales in Brazil Up 58 Percent over 2019, Best Monthly Result Since 2014

RIO DE JANEIRO, BRAZIL – The monthly balance of the Brazilian Association of Real Estate Developers (ABRAINC), prepared by the Institute of Economic Research Foundation (FIPE), shows an increase of 58 percent in sales of new housing units in July compared to the same month in 2019. In all, 13,023 units were sold in the period, representing the best monthly result for the indicator since May 2014.

The survey, based on data provided by developers, also shows that between the months of May, June, and July sales grew by 25.5 percent compared to the same period last year, totaling 35,814 units sold.

In the 12 month measure, the 125,380 units sold represent an increase of nine percent in relation to the volume sold in the preceding 12 months. Net sales (computed based on sales volume and mortgage extinctions), increased by 56.2 percent in July, 21.2 percent in the last rolling quarter, and 12.1 percent over the past 12 months.

Resumption of launches

Meanwhile, new development launches recorded a 38.2 percent high in July, which for ABRAINC president of Luiz Antonio França proves resilience faced with the crisis imposed by the pandemic. For the executive, the resumption is an indication that developers are confident about the Brazilian economic recovery.

“In July, new development launches recorded a 38.2 percent growth. This hike reflects the resumption of launches (7.3 percent) and sales (34.8 percent) on the medium and high-end segment, which had suffered a greater impact from the pandemic,” says França.

‘Minha Casa, Minha Vida’

While medium and high-end properties recorded a 60.3 percent drop in launches and a nine percent drop in sales over the past rolling quarter (compared to the same period in 2019), the developments of ‘Minha Casa Minha Vida‘ (public housing program) recorded a less significant drop in the number of launches (24.6 percent). On the other hand, there was a 39 percent increase in cumulative sales between May and July.

The results were even better in relation to July. Properties in the ‘Casa Verde e Amarela Program’ (current name for Minha Casa Minha Vida) recorded a 47 percent increase in launches and a 62.4 percent increase in sales.

The medium and high-end developments also showed a positive performance, with a 7.3 percent increase in the volume of launched units and 34.8 percent in sales. “The numbers are indicative that the building sector is leaving uncertainty behind. The deficit of 7.79 million houses in the country strengthens the disposition of new investments by developers,” says França.

Source: Exame

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