Real estate market forecasts an increase of more than 11 billion throughout Brazil

The real estate market is increasingly feeling the sector’s recovery and, in 2021, the projection is for a growth of more than 12% in Brazil compared to last year. According to an estimate by the Association of Directors of Real Estate Market Companies (Ademi), the General Sales Value (PSV) should end this year at around R$99 billion in the country.

In 2020, the value sold was approximately R$88 billion. To CNN, Cláudio Hermolin, president of Ademi-Rio, affirms that this is one of the best indicators in the market as it shows the amount of revenue that can be generated with the residential projects. According to him, the advance was possible due to three main factors.

“Despite the recent increase in the Selic rate, real estate credit remains low, historically speaking. In addition, even in the pandemic, 85% of the construction sites were active in the country. And, finally, with Covid-19, there was a requalification of living. We are experiencing a health crisis, which required people to stay at home, making the home and, therefore, the real estate market, to have greater relevance”, explains the engineer.

Also according to Ademi, the city of Rio should represent around 5% of the country’s PSV. Thus, the state capital expects to reach R$5 billion this year in sales of residential units, compared to R$3.8 billion in 2020.

“Compared to 2020, the increase in Rio will be more than 30%. Despite the progress, we are not yet going to reach the level of glory, which took place between 2010 and 2013. To give you an idea, during this period, Rio achieved a sales value of R$ 10 billion annually”, explains the engineer.

Hermolin points out that São Paulo can reach the historical record and end the year with growth six times greater than Rio.

“The capital of São Paulo can reach a PSV of R$30 billion. The real estate market in Brazil, in fact, has always been more concentrated in São Paulo, due to the economy and GDP. In the 1980s, for example, the PSV of São Paulo was around eight times greater than that of the capital of Rio de Janeiro”, says the president of Ademi-Rio.

In the last release of the Construction Industry Survey, carried out by the National Confederation of Industry (CNI) with support from the Brazilian Chamber of Construction Industry (CBIC), the data were also positive. In 2021, the construction sector is expected to register the greatest growth in the last 10 years. This is because the expectation is for a growth of 5% in the GDP (Gross Domestic Product) of the sector.

In addition, the average construction activity level reached 50.4 points in the third quarter of this year, the best index for the period since 2010.

For the fifth consecutive quarter, the main problem in the sector is the high cost of inputs and raw materials, or the lack of them, according to 54.2% of businessmen. However, in the last two quarters, the sector’s complaint for missing item registered a gradual slowdown, going from 77.5 points to 75.

*Under supervision of Helena Vieira