Several new releases, skyrocketing sales and soaring prices. Forget It all. That’s how the article in the newspaper O Globo starts and talks about the fall in property prices in Brazil. With the political and economic crisis, business in the sector have gone downhill.
According to the newspaper, prices have stabilized and with the brake on consumption, the inventory of finished units grew. In 2014, real estate sales shrank 35% and it does not give signs of recovery. Construction and real estate agencies now offer deals with up to 20% discount and negotiate better payment terms. In the used real estate segment, it needs to compete with the large supply of new, more frequent price reductions, even in cities like Rio, considered the industry’s best square meter in the country.
The demand is still there because Brazilians need a place to live. But it still seems too expensive, considering that there are no more jobs, interest and debt are skyrocketing and the risk of a water crisis is imminent. To top it off, factors such as public safety and urban mobility are unsolvable problems.
The article tells how in recent years, many homeowners in the South Zone of Rio, Niterói, Barra and Tijuca began to feel like millionaires. All thanks to the incredible value of the homes in these regions. Now the reality is different. The article tells how an owner is having problems to sell her 120 square meters three bedrooms in Rua Santa Clara, at the heart of Copacabana. Listing by R$ 1.5 million five months ago, she received no calls for the property. Last month, she lowered the value to R$ 1.25 million and also nothing happened. So far, the best proposal received was R$ 1.1 million but she refuses to bring down the price!
In an attempt to burn the stocks and make way for new releases, builders began to organize true properties fairs. Some builders promise discounts of up to R$ 60,000 in Greater São Paulo and up to R$ 0,000 in the capital. Even sites that gather ads are organizing special pages with promotions.
Brasilia, the capital of Brasil.
The real estate market for new buildings in Brasilia is stopped, just like the Brazilian economy. The downturn in the economy and the bureaucratization to approve new projects are identified as the biggest problems for industry entrepreneurs in that region of the country.