Real Estate: São Paulo will have over 46 thousand apartments in 2023 – 04/08/2023 – Market

A survey indicates that the city of São Paulo will end this year with 46 thousand more apartments. There are 580 residential condominiums, according to Lello, responsible for the research.

Most of the units launched will be of high standard, with more than 100 m² and aimed at families. The study made with data from developers and builders indicates a drop in the launches of compacts and studios compared to last year, when the segment led the market offerings.

In addition to the improvement in the medium and high-income segment, the changes in Minha Casa, Minha Vida also boost launches and sales of properties in the country. This is what the Confidence Indicator for the Residential Real Estate sector, from Abrainc (Brazilian Association of Real Estate Developers) with Deloitte points out.

For the next three to 12 months, industry executives are optimistic about launches and land acquisitions for both segments.

According to Lello, in the city of São Paulo alone, another 1,700 new buildings will be delivered by 2025, with around 168,000 apartments and 650,000 residents.

“The number for 2023 is 30% higher than last year’s. It is what we recorded between 2008 and 2010. And it only grows”, says Angélica Arbex, Marketing Director at Lello Condomínios.

The growth estimate is a reflection of the review of the city’s master plan, which also encourages construction on land further away from the public transport axis.

“The movement of the real estate market in São Paulo also anticipates the recovery of the country’s economy, even anticipating the drop in interest rates”, says Arbex.

After a year keeping the Selic at 13.75%, the Central Bank reduced it by 0.50 percentage points, on Wednesday (2). For experts, the fall reheats the real estate market.

“It is an important signal, since the basic interest rate impacts the cost of loan operations, including real estate financing. More than this first drop, it is the signal of further reductions by the Copom itself [Conselho de Política Monetária]”, says economist Larissa Gonçalves, from DataZAP+.

The projection of the Focus Bulletin, even before the council’s last decision, traces the Selic rate to 12% by the end of this year.

“It is not possible to be sure when the impact will be felt in the real estate market, but, looking back, we can have an idea. When the Copom decided to reduce the Selic rate target from 6.5% per year to 6% per year, we saw that, in the same month, the free interest rates on real estate financing fell and in two months the regulated interest rates fell. As the Selic determines an opportunity cost of the credit operation, it is natural that the first effects are quickly felt “, says Goncalves.

Shortly after the Copom cut this Wednesday, Caixa and Banco do Brasil announced the reduction of the INSS payroll loan rate. The tendency is for interest on other types of credit to also be reduced, including real estate.

The signaling of a continuous reduction in interest increases expectations of sector growth among builders and developers. Most intend to launch properties in the next 3 to 12 months and intend to acquire land in the same period.

Abrainc’s research with Deloitte shows that executives expect a strong increase in sales for the third quarter of 2023.

In the second quarter of this year, the residential real estate market recorded growth in demand and property sales in the country, significantly improving performance in relation to the previous period.

Rise in prices remains

Residential property prices continue to rise, up 6.9% in the second quarter of 2023 compared to the previous period, points out Abrainc.

Executives expect more price increases for the third quarter of this year, with strong increases for the next 12 months. Highlight for Minha Casa, Minha Vida properties, which may have the highest growth in the price index.

The survey was carried out with 47 builders and developers in the residential real estate sector, between July 3rd and 17th.

Five factors for choosing an apartment

1. Getting to know the condominium

• It is necessary to ask, especially for people who have no direct interest in carrying out the real estate transaction, the characteristics of the apartment and the region
• The condominium caretaker can answer questions about the profile of the residents, such as if there are more families or singles, if they are united and if they have Christmas and June parties
• By observing the common areas, it is possible to identify if there are initiatives such as vegetable gardens, recycling, water savings and which spaces are intended for pets and children.

2. Calculate the amount invested

• In addition to the financing or rent installment, those who live in an apartment pay a condominium fee
• Condominium quotas are amounts charged monthly from each condominium member to cover common expenses, such as services, maintenance and improvements to the common areas of the condominium.
• There are also buildings that manage to unify common expenses such as water and gas in the total amount of condominium fees.

3. Check the services offered

• Resources such as parking, security, leisure areas, swimming pool and gym can influence the quality of life
• Many condominiums now also offer the choice of payment slips and digital assemblies, which can bring practicality in everyday life

4. Consider the location

• Experts advise considering the proximity of the property to the resident’s work to reduce the time of departure
• Having schools, public transport, commerce, health services and leisure areas nearby also values ​​the resident’s time and the property.

5. Check apartment details

• The size of the apartment must meet the current and future needs of the resident, as well as the distribution of rooms.
• Before signing a contract, the interested party must verify that electrical, hydraulic, coating and structure systems are within the required standards.
• If possible, ask for a professional inspection to ensure there are no hidden problems.