Real estate launches down 8% in 2020 in São Paulo, while sales rise 4%
RIO DE JANEIRO, BRAZIL – Amid the novel coronavirus pandemic, the city of São Paulo saw new real estate launches drop 8% in 2020 to 60,000 units, while sales rose 4% to 51,400 units. The figures came from the São Paulo Housing Developers’ Association (SECOVI-SP), released during a press conference on Wednesday, February 10th.
According to chief economist Celso Petrucci, developments linked to Brazil’s public housing program, now called “Casa Verde e Amarela”, accounted for 29,400 launches last year, while medium and high-end properties registered 16,600 launches, and up to one bedroom totaled 14,100. Overall sales value reached R$25.024 billion, a 5% drop over 2019, while absorption rate stood at 11%.
“It is worth noting that the demand for medium and high-end properties is higher than the 16,600 units sold in 2020, but due to restrictions surrounding the pandemic, we experienced a squeeze in demand”, Petrucci comments.
SECOVI stresses that the developments launched within the Casa Verde and Amarela program supported the real estate market in the city in 2020, accounting for 49% of total launches, and an average ticket of R$200,000.
“There was an 11% increase in launches for the Casa Verde e Amarela and it could have been much higher were it not for the limitation of resources and the R$240,000 cap in the units here in São Paulo,” he said.
The association expects a rise in overall sales from 5% to 10% in 2021, repeating the good performance of the past two years in units launched and sold.
But president Basilio Jafet says that there is some concern surrounding the rise in the price of building supplies which may affect this estimate. “We are very optimistic with São Paulo real estate market, despite issues related to inflationary pressure on building materials,” comments Jafet, highlighting that SECOVI projected that by the end of the first quarter prices would begin to stabilize.
Source: InfoMoney
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