Residential Real Estate - Brazil

Brazil

The Residential Real Estate market market in Brazil is expected to reach a value of €6.55tn in 2024.
It is projected to exhibit an annual growth rate (CAGR 2024-2029) of 1.42%, leading to a market volume of €7.03tn by 2029.
When compared globally, China is anticipated to generate the highest Real Estate value, amounting to €104.7tn in 2024.
The demand for luxury apartments in Brazil is on the rise, driven by increased foreign investment in the country's residential real estate market.

Key regions: Europe, Brazil, France, Asia, United States

Marché

Région

Comparaison de régions

Monnaie

Analyst Opinion

The Residential Real Estate market in Brazil has been experiencing significant developments and trends in recent years. Customer preferences in the Brazilian market have shifted towards modern and well-designed properties. Buyers are increasingly seeking properties with amenities such as swimming pools, gymnasiums, and green spaces. This reflects a growing desire for a higher quality of life and a focus on health and wellness. Additionally, there is a rising demand for properties located in well-connected areas, close to transportation hubs and major employment centers. Trends in the market indicate a shift towards smaller, more affordable housing options. This can be attributed to changing demographics, with an increasing number of young professionals and small families entering the housing market. These buyers are often looking for properties that are more affordable and require less maintenance. As a result, developers are focusing on building compact and functional apartments and townhouses to cater to this demand. Local special circumstances in Brazil have also influenced the development of the Residential Real Estate market. One key factor is the country's rapid urbanization, with a significant portion of the population moving from rural areas to cities. This has created a need for more housing options, particularly in urban centers. Additionally, Brazil's growing middle class has contributed to the demand for residential properties, as more individuals have the financial means to invest in real estate. Underlying macroeconomic factors have played a role in shaping the Residential Real Estate market in Brazil. Low interest rates have made it more affordable for individuals to take out mortgages and finance their home purchases. This has stimulated demand in the market and encouraged more people to enter the real estate market. Additionally, economic stability and a decrease in unemployment rates have boosted consumer confidence and increased the willingness to invest in real estate. In conclusion, the Residential Real Estate market in Brazil is developing in response to changing customer preferences, local special circumstances, and underlying macroeconomic factors. The shift towards modern and well-designed properties, the demand for smaller and more affordable housing options, and the rapid urbanization and growing middle class in Brazil are key drivers of this development. Additionally, low interest rates and economic stability have played a role in stimulating demand in the market.

Methodology

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.