Property sales rise 46.1% in the 1st half, best result in 4 years

posted on 8/23/2021 4:17 PM / updated on 8/23/2021 4:19 PM

  (credit: Diogo Moreira/MáquinaCW)


(credit: Diogo Moreira/MáquinaCW)

The balance sheet released this Monday (8/23) by the Brazilian Chamber of Construction Industry (CBIC) shows that Brazil registered an increase of 46.1% in the number of new apartments sold in the first half of 2021, compared to the same period of the last year, the best result in 4 years. The highest growth rates were registered in the Northeast and Southeast regions, with 60.9% and 49.2% respectively.

Data were collected and analyzed in 20 capitals and 162 cities from North to South of the country with the help of the National Industrial Learning Service (Senai Nacional) and Brain Strategic Intelligence.

Even with an increase of 115% in launches compared to 2017, José Carlos Martins, president of CBIC, maintains a warning tone when analyzing the results. “We grew a lot compared to 2020 numbers, but the concern is the releases. We have a number of companies that had projects ready to be launched in the first half (2021) and that had to back off, because when it came to doing the math, they didn’t close.”

According to the president, the price of the property rose, but could not match the price of materials, leading to a demand for apartments that, if continued at this rate, will soon become greater than the supply. “There will be pressure on the price of apartments that is incompatible with people’s wages, which have not increased as much,” he pointed out.

As shown in the study, considering the average sales of the last 12 months, if there are no new releases, the final offer would be exhausted in 8 months.

Green and Yellow House

The Casa Verde e Amarela housing program, created by the Bolsonaro government in 2020, represented 48% of total launches in the second quarter of 2021 and 49% of the units sold in the same period. There was a decrease of 8.2% compared to the first quarter of 2021 and 5.7% compared to the second quarter of 2020.

“There was a need to recalculate many projects due to high prices, especially in Casa Verde and Amarela. These are houses that were developed, took a year of design and approval, were ready, but underwent a 15% or 20% increase and had to go back to the drawing board.” highlighted Fábio Tadeu Araújo, president of Brain Inteligência Estratégica.

Construction

The number of workers with a formal contract in Civil Construction increased by 15.15% compared to the same period last year. It is important to emphasize, however, that the sector could be employing much more: the pace observed in the first two months of the year was reduced by 50%.

According to Celso Petrucci, president of the Real Estate Logistics Commission, “the lack (of raw materials) and the rise in input prices have prevented a more consistent advance. If there were a balance in the increase in costs and, consequently, greater security for entrepreneurs to place their products on the market, we would have a much more favorable environment”.

Future

The last points presented at the press conference addressed the real estate market’s concern with the future, citing the water crisis, the Delta variant of covid-19 and the 14 million unemployed Brazilians. On the other hand, optimistic points were also mentioned for the sector, such as the advance in the vaccination process against the coronavirus and the GDP projections for Brazil in 2021.

*Intern under the supervision of Andreia Castro