Fall in inflation causes real estate market to resume growth in 2017

After a year marked by the economic and political crisis, forecasts for 2017 are more positive.

According to the Central Bank, the estimate is that the inflation index will decrease to 5.07%, interest rates will be reduced and the growth of the Gross Domestic Product (GDP) will be at 1.3%.

Inflation, which has made a strong comeback in recent years, was one of the main reasons for the housing market to contract. However, according to forecasts by experts in the economy, inflation is in a slowdown phase, which will allow business to become heated again.

Brazilian inflation went from 10.7% in 2015 to approximately 7.2% in 2016, which shows that it has been falling, little by little. The president of the Central Bank also said that he will try to reach a central inflation target of 4.5% stipulated for next year.

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Faced with optimistic expectations, the Federal Government is approving positive measures that affect various segments of the Brazilian economy. Real estate is one of them. On February 16th, the Ministry of Planning announced that the National Monetary Council (CMN) increased the value for property purchase using FGTS resources.

In Rio de Janeiro, São Paulo, Minas Gerais and the Federal District, the ceiling for the purchase of properties using FGTS resources was R$ 950,000. In other regions, the maximum amount was R$ 800 thousand. Now, the current value is R$ 1.5 million and should especially move businesses related to high-end real estate.

In 2017, economists predict that unemployment will also decline, which will certainly positively influence the housing market. With a more stable economy, the real estate market is moving again, as consumers have available credit again.

According to specialists, there will also be a resumption of growth in the civil construction area, which will consequently favor the real estate sector, since cheaper prices for materials and labor will reduce costs, encouraging launches and also increasing the value of properties more accessible to a larger portion of the population.

The recovery of the real estate market is also directly related to the growth of the Gross Domestic Product (GDP), as this index follows the behavior of the Brazilian economy, as well as showing all the goods and services made in Brazil. The Central Bank believes in a satisfactory scenario for 2017. The institution expects growth of 1.3% in the coming months.

According to data from the International Monetary Fund (IMF), the expectation is that the Brazilian economy will have satisfactory growth in 2017. Thus, the fund estimates an advance of 0.5% in GDP, against a zero growth projection made. in the last two surveys of the agency.

As everything indicates, this year will be marked by the return of activities in the real estate market. The time will also be favorable for those who want to acquire a residential development. According to specialists, those who wish to buy their own home should seek guidance and help from specialized real estate agencies. Construtora Planeta, for example, has been operating in the real estate market since 1998 with experience and focus on residential projects. The company is recognized in the real estate market for the excellent quality of its projects and strict compliance with delivery deadlines.

According to specialists, this will be the year for the real estate market to resume its growth. The drop in inflation will be largely responsible for this moment, which will also bring great opportunities for the acquisition of residential projects.


Siraj Tanoli

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