Real Estate Transactions are up by 5.97 Percent in the State of São Paulo

RIO DE JANEIRO, BRAZIL – The total of real estate transaction increased 5.97 percent in the state of São Paulo in this past 12-month period compared to the previous year.

It is what reveals the balance of the register of properties disclosed on Monday, September 30th, by the Association of Registrars of Real Estate of São Paulo (Arisp) in partnership with the Foundation Institute of Economic Research (Fipe).

Between July last year and June 2019, 613.300 properties were bought and sold in the state.

The data from the notaries also show that 919.100 transfers of land deeds were made in 12 months until June this year. This total includes inheritances, donations and sharing of assets. Most of the transfers were for land, accounting for 32.9 percent, and apartments for 31 percent.

The sector has shown continuous improvement since 2016 when negotiations reached the lowest level of the crisis.

“We were on an upward curve in 2012 and in 2013, 2014, because of the political and economic crisis, the housing market suffered. Then, we had a downward curve that only began to be reversed in 2016,” explained Arisp’s research coordinator, Patrícia Ferraz.

In 2016, 741.300 deed transfers and 499.500 purchase and sale transactions were made.

Default

Another indicator that shows improvement in the real estate industry, according to Patricia, is the drop in the percentage of executions in fiduciary divestitures.

These are transactions in which the real estate is given as collateral for a loan or for financing the property itself.

“The statistics of fiduciary divestitures of real estate show that we had a peak, a very large number of executions in real estate financing and loans based on real estate, which has decreased. It has decreased very strongly since last year. The number of executions initiated has plummeted,” Patrícia emphasized.

In October of last year, 166.500 executions were filed, when the financial institution began to take possession of the property due to nonpayment of the loan. In the previous month, September, for every 100 properties registered after the purchase with this financing model, 77 were executed by the banks.

In June 2019, this proportion fell to 52.3 percent. In that month, 222.800 records were made of properties purchased through fiduciary alienation.

Source: Agência Brasil