Real estate market in 2021: 1st semester overview

O real estate market in 2021 is hot. Financing for the purchase and construction of housing in Brazil totaled R$ 97 billion in the first half of this year, an increase of 124% compared to the same period in 2020.

Another indication of this growth is real estate credit for construction companies to expand their projects. It reached R$17.4 billion in the semester, an increase of 89%.

What is behind these figures? How do interest rates - below the historical average - and the greater appreciation of housing impact the scenario? Here's an overview of the real estate market in 2021.

Figures that confirm the heating up of the market

The data that introduced this article comes from the Brazilian Association of Real Estate Credit and Savings Entities (Abecip), released by Abecip's president, Cristine Portella, at a press conference.

This survey considers loans whose resources came from savings accounts, which are the sector's largest source of funding. In other words, it does not include the second largest source: the FGTS. So the numbers are bigger.

Abecip's figures also show that financing for the purchase of

real estate by individuals reached R$79.7 billion in the first half of this year.

Transactions involving new properties grew by 136%, more than used properties, which rose by 128%. These are significant figures and corroborate the real estate credit granted to construction companies, which rose by 89%.

Interest rates below the historical average contribute to this scenario

The interest ratesThe increase in the price of housing, which is below the historical average, as well as the greater appreciation of housing - due to the pandemic - have helped to keep the real estate market hot in 2021.

The president of Abecip, also showed that there is a movement in favor of

recovery of the Brazilian economy. The organization forecasts GDP growth of 5.3% for the year.

However, mortgage interest rates, which are at an extremely low level, are likely to rise in the second half of the year. The influence comes from the Selic: the economy's basic interest rate.

Abecip, like the Focus Bulletin, projects these rates to be around 6.75%. Even so, the real estate market in 2021 is experiencing a positive moment, with many sales and banks competing with each other.

São Paulo's real estate market in 2021

The Economics and Statistics Department of the São Paulo Housing Union (Secovi-SP) released its Real Estate Market Survey at the end of July, showing that 6,837 new residential units were sold in June in São Paulo alone.

The market ended the first half of the year with a record number of units launched and sold. The accumulated total between January and June was 27,114 units. This total surpasses the record for the first half of the previous year.

The Real Estate Market in 2021 reveals that this is a good time to invest in buying your own property. Take advantage of the competition between banks, the lower interest rates and the heated scenario.

Before choosing how to buy your apartment, read our article Buy

 cash property or financing? to answer all your questions about these two modalities.