RIO DE JANEIRO, BRAZIL – After a period of strong recession, the real estate market in the Federal District (DF) is finally picking up. 2019 promises to be the best year in launches and new real sales for the home of Brazil’s capital since 2014.
In contrast to the rest of the country, where the market is in decline, Brasília’s real estate market is booming, with developers planning to launch over 25 residential and commercial projects in various regions of the country’s capital. As a result, 2019’s performance is expected to exceed last year’s in 53 percent.
In terms of general sales value, this year’s launches should amount R$ 2 billion (US$ 520 million). The estimated investment to build the projects is of R$ 1.5 billion (US$ 390 million), stretching over approximately three years.
After several difficult years, DF is now anticipating economic recovery. “Real estate construction is one of the most important industries for generating business across various production chains, from industry to services, wholesale and retail,” says Rogério Oliveira, a partner at Quadraimob Real Estate.
According to data from market intelligence, in 2019, Plano Piloto will again lead the upswing because of the Northwest, a neighborhood that is attached to Asa Norte. About twenty residential and mixed-use buildings will be built in this neighborhood alone.
Águas Claras will be another region to benefit from launches. “There is virtually no offer of new and ready-to-live units of two, three and four rooms in the neighborhood,” affirms Oliveira.
The main market indicators are favorable and, therefore, reinforce this projection. The units inventory is low, with fewer than four thousand residential units and about one thousand commercial units. The adequate supply to regulate the market in the Federal Capital should be at least nine thousand units.
There is also growing demand. Sales of residential real estate at the Plano Piloto accelerated again this year due to the low supply of new units for occupancy. Sales of new homes were about 10 percent higher from January to March this year compared to the same period in 2018.
The Sales Speed Index of new residential real estate has also been seeing continuous growth since 2015, according to research by local real estate entities (Ademi-DF and Sinduscon-DF).
In recent years, the capital Brasilia has overtaken big cities like Salvador and Fortaleza in population growth. With a population of almost 3 million, it is the third largest city in Brazil today.