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5 real estate market data and prospects

The year 2018 is marked by the transition from an antagonistic government to the one that governed Brazil for about 16 years, and the data from the real estate market for the coming year came to light at the end of the year.

One of the most relevant data on the real estate market for investors who intend to invest their capital in this sector is that the purchasing power of the average Brazilian is decreasing with the rise in inflation.

In general terms, an important fact is that the price of new and used properties fell during the first six months of 2018. However, periods of crisis open space for economic recovery and new perspectives for the real estate sector in the coming years. Check below the 5 main data of the housing market for 2019.

Expansion of the real estate market to 2019 Focus on the low-income real estate segment Increased supply of popular mortgage credit Increased industry engagement in online sales Urgency regarding the result of the 2018 elections

With the end of the cycle of falling interest rates and fiscal adjustments, the real estate market has future projections for the exit from the recession scenario, which has been dragging on for several years.

Although the expectation is for improvement, the indicators of this improvement are still timid. This is the time for companies to align their metrics and invest in a lean way.

Real estate fund investors can take advantage of this moment to increase their exposure to the Real Estate Funds market, since everything indicates that we have gone through a turning point in the downward trajectory.

Focus on the low-income real estate segment The search for properties that belong to the high standard segment, those considered double or triple A, will still be timid at this beginning of recovery.

Although this is the segment most sought after by Real Estate Fund managers, the popular housing segment is more resistant to the bumps in the economy, especially when interest rates are kept at low levels.

In view of this, paper funds tend to benefit from the increase in loans for real estate financing, since there is an increase in the reliability of this client profile.

Increased supply of popular real estate credit Consumer credit with a low income profile can be facilitated in this period of heating up of the sector.

This is what the CMN (National Monetary Council) seeks to do by facilitating the competition of construction companies and developers with the new rules of the sector.

The new CMN program comes into effect in January 2019, when savings resources for real estate financing are released for other lines of credit linked to the sector.

In addition, there are prospects for an increase in the ceiling on the value of financed real estate. This increases the range of clients that may benefit from popular real estate financing.

As of 2019, there are prospects for improvement in online customer service, seeking to achieve excellence in service of digital platforms.

As a result, the industry will offer greater credibility and efficiency, bringing advantages to both parties, both sellers and customers.

Urgency regarding the promises of the 2018 elections A positive economic outlook for the real estate market in 2019 depends closely on macroeconomic factors, such as the reforms intended during the campaigns and the presidential race held in 2018.

Without the reforms and the rebalancing of the domestic debt, it will be impossible to achieve the much-anticipated economic growth and the recovery of the real estate sector as a consequence of this growth for 2019.

Considerations The real estate market data for 2019 presented are important points of analysis to prepare us for the coming years. And this has a direct impact on the pockets of ordinary citizens, either to acquire their own homes or to invest in the real estate sector.