Subdivision market grows by almost 200% during the pandemic
Social isolation is changing the concept of living well and has encouraged the search for lots in cities in the metropolitan region of Belo Horizonte and the metropolitan area
The concept of “living well” is being updated with the Covid-19 pandemic. This is because social isolation provided a new relationship with the home for a large part of the population, whether due to the home office, which was adopted by many companies, or the leisure options, which became strictly at home. Real estate market specialists even point to an urban exodus, which has driven a segment that is not feeling the effects of the economic crisis: the subdivisions. According to industry estimates, during the pandemic period (late March to early July), there was a growth of up to 200% in sales of lots in the country compared to the same period last year.
According to the president of the Association of Subdivision and Urban Development Companies (Aelo) in Minas Gerais and director of subdivisions at the Chamber of Real Estate Market and Union of Real Estate Market Companies of Minas Gerais (CMI/Secovi-MG) and at the Union of Civil Construction of Minas Gerais (Sinduscon-MG), Flávio Guerra, the estimate can be replicated in the Minas Gerais market and is being observed in several developers in the state. “The search for lots, especially in the metropolitan region of Belo Horizonte and cities in the metropolitan area, has increased a lot. Many people were hostages to housing in the Center-South region of Belo Horizonte to facilitate commuting to work and, with the adoption of home office and videoconferencing meetings, they no longer need to travel as often. In this context, having a garden, swimming pool, private leisure at home can bring much better quality of life”, reveals the businessman, who is also CEO of Construir Loteamentos (allotment company) and member of the Council of Urbaminas (management of allotments).
He explains that this increase in demand for lots was felt in all profiles: popular, medium and luxury. “One of the factors is the ease of financing a lot, which is usually direct with the lottery. Access to credit is less bureaucratic, with interest rates ranging between 0.5% and 0.8% per month. On average, the number of plots for the acquisition of new land is 120 months.” Among the most sought after cities, Guerra cites Lagoa Santa, Pedro Leopoldo, Sete Lagoas, Betim, Contagem, Igarapé, Santa Luzia, Esmeraldas, Vespasiano and Nova Lima, which have a large offer of lots available.
The allotment company Ello Urbanismo, specialized in the popular segment, is an example that the market has obtained excellent results in the pandemic. According to the company director, Leonardo Matos, between March 16 and July 7 this year, land sales increased 200% compared to the same period last year. In relation to the number of customers interested in the purchase, the increase in the period was 268%. “There is no house without a lot. Often, a client does not have enough money to purchase a house and investing in land for the construction of the home can be an excellent option.” He comments that the experience with social isolation is one of the main reasons for the increase in the search for lots. “Those who are experiencing this moment in an apartment, sometimes small, have come to value other things, such as the tranquility of cities outside the large urban centers, contact with nature and other benefits that only those who live in a house have”, he reveals .
Allotment in a closed condominium
The segment of luxury and high-end condominium subdivisions in closed condominiums is also registering positive results in the pandemic. Businessman Adriano Manetta, who is managing partner of Masa Empreendimentos and vice president of the Lottedoras area at CMI/Secovi-MG, confirms the information. “In a development in Vale do Mutuca, with prices around R$540,000 on a plot of land measuring one thousand square meters, last year, a lot was sold every two months; only during the pandemic period, we have already sold five. In another subdivision in a closed condominium, which had very low demand in 2019, we have already liquidated the stock. We had approximately one thousand inquiries about our subdivisions between January and June this year, and in the same period last year, we received 90.?
This new look at housing with social isolation and the valuation of homes are also factors pointed out by Manetta. “The trend that had been to reduce the size of the apartments and the focus on common areas was reversed. Now, living in a large space, outside the big cities, has become much more valuable”, he details.
Leonardo Fernandes Rocha, commercial director of Bens de Raiz Imóveis, a pioneer in the segment of luxury and high-end condominiums, reinforces the increase in sales of lots in the pandemic. “We had this stagnant market for a long time, but now we are experiencing this urban exodus.” Another market that emerges in this scenario is the purchase of a second home to serve as a country house and farm. “People have gone back to looking for lots for this purpose, something we haven’t seen for a while,” he adds.
Investment lot
“Those who buy land don’t make mistakes.” That old maxim seems to be more current than ever again. “At this moment in which we live with uncertainties, this type of equity has once again been highly valued, especially in relation to the security that this asset has. In recent months, we have seen constant volatility on the stock market, in addition to the sharp drop in the Selic rate. The return on investment in land is usually more linear”, says Flávio Guerra. Adriano Manetta agrees: “those who have the money invested are withdrawing and seeking other types of investment, such as the purchase of land, especially at a time when there are still good offers in the market”.
About expectations, Guerra is cautious. “Furturology is complex; we do not know what will happen in the coming months, but it is clear that the change in consumer behavior has occurred and that, increasingly, the terrain brings this greater sense of security, of stepping on the investment itself; batch buying is a trend that is here to stay.”
Photo: DINO / DINO
