Business

Are the halcyon days of Brazilian real estate coming to an end?

Property sales and construction went through the roof during the pandemic, but the macroeconomic scenario is casting doubt over the sector's immediate future

real estate market
Miniature building in a real estate showroom. Photo: Andre Melo Andrade/Immagini/Folhapress

The coronavirus pandemic transformed Brazilians’ idea of home life. Remote work and decreased social interactions led to a newfound appreciation of dwellings as leisure and workspaces, worthy of improvement. As a result, the country’s real estate sector boomed, with a spate of new property launches and record sales leading to positive numbers that surged throughout 2020 and spilled over into 2021, as well.

Furthermore, historically low benchmark interest rates made real estate financing more attractive and accessible — but this trend was soon reversed. Spiraling double-digit inflation coaxed the Central Bank into jacking up the Selic interest rate...

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