São Paulo’s real estate market saw a 10% increase in new residential sales in 2023, hitting 76.1 thousand units, Secovi-SP reports.
The spike was mainly in mid- to high-end homes, with sales up by 15%, reaching 40.2 thousand units.
Meanwhile, affordable housing under the My House, My Life program grew by 5%, totaling 35.9 thousand units.
The city’s property transactions surged to R$43.9 ($8.8) billion, a 26% year-on-year increase, propelled by the demand for luxury units.
Celso Petrucci of Secovi-SP notes rising property prices and a dip in new listings, signaling a market shift.
New project launches saw a slight dip of 3%, totaling 73.2 thousand units. High-end launches decreased by 18%, while affordable housing launches rose by 17%.
Financially, new projects brought in R$44 ($8.8) billion, marking a modest 3% growth.
Secovi’s president, Ely Wertheim observed a significant shift towards selling off existing stock in 2023, amid challenges like high interest rates and political uncertainty.
Yet, the current market outlook is notably more positive than last year.
Inventory for new homes available dropped by 8.7%, from 70.8 thousand units in 2022 to 64.6 thousand in 2023.
The luxury segment dominates the inventory, with economic housing making up 38%.
The sell-off rate for high-end homes is now at 12 months, faster for affordable homes at 8 months. Sales velocity improved for both segments in 2023, indicating robust demand.
Wertheim highlights a critical balance issue between demand and supply, leading to price hikes.
In short, this trend underscores the evolving dynamics in São Paulo‘s real estate, reflecting broader economic influences and market responses.