The real estate market in 2021 promises to mature the trends of 2020. The use of technologies such as virtual visits have become important tools to close deals. In addition, the use of real estate management applications helped in administrative and financial activities. Thus, the real estate market in 2021 has ways to reinvent itself and grow.
The real estate market in 2020
2019 was a year of growth for the real estate market. Thus, the 2020 pandemic resulted in fear for those who started the year with high expectations. This is because, going against several markets, the real estate market had a 26.7% increase in sales in the first quarter of the year.
However, after the distance and social isolation measures, there was a 14.8% drop in the number of units launched compared to the previous year. This demonstrates the effects of the crisis on construction companies and the low demand for new properties. This value is an average that does not represent all regions of the country. The Northeast, for example, was the region with the greatest retraction, with 56.3% less than in 2019.
Regarding sales, the values were significant. When the virus arrived in Brazil, many agents in the sector imagined that the number of signed contracts would drop dramatically. However, in practice the effect was the opposite. With work in the home office on the rise, the relationship of people with their homes has changed and the need for spaces more in line with their needs has boosted the demand for new homes.
Despite the results not reaching the experts’ expectations, 2020 was a year in which digital transformations were present in the real estate market. That’s because, we are talking about a year marked by remote work. Joining the home office was the safest option for most workers. Thus, it was realized that it is possible to maintain the flow of sales even at a distance.
Many real estate agents and brokers have understood the importance of a reliable and responsive portal. Casa Mineira Imóveis already has a portal with dozens of properties available and filters that facilitate the search for the ideal property.
Real estate market in 2021
After a troubled year such as 2020, there are many projections for the real estate market in 2021. According to the Brazilian Association of Real Estate Developers (Abrainc), 97% of the 38 largest companies in the industry intend to launch projects in 2021. This number reinforces the expert opinion that sales are expected to increase this year. This expectation attracts investors.
In 2020 the biggest search was for apartments in the plant or under construction. This is because, these ventures allow greater flexibility of payment and financing with lower interest rates. So, those are the bets for the real estate market in 2021.
In addition to the search for a residence that is in line with its new reality, the historic drop in the Selic rate was also one of the main reasons for the rise in property sales in 2020. The rate remains at 2% in 2021, which propels the fall interest on the financing lines. There is some concern about the possible increase in that number, but for now it remains the same.
As for the implementation of digital technologies in the real estate business, the promise is that many of them will remain. Even though they already existed in the routine of real estate agents. The pandemic has shown its relevance and effectiveness. Online service, for example, should continue to be strong in 2021. This is because it proved to be an excellent way to establish the first contact with potential customers, reaching a larger audience.
Another factor that promises to boost the market is the Casa Verde e Amarela government program. Substitute for Minha Casa Minha Vida, the new format focuses on three fronts: real estate financing, land tenure regularization and housing improvement. It also makes it possible to renovate and expand houses.
Another important point for the real estate market in 2021 says about the structure of the buildings. The isolation period made people appreciate the structure of the condominiums more. The various advantages that these developments offer, such as a swimming pool, leisure areas and gourmet space, became more attractive when people were unable to leave their homes. In addition, the search for homes close to green areas has also increased. This is because, buyers are looking for a better quality of life, away from big cities, extremely noisy and plagued by pollution.
Technological innovations in 2021
As stated, 2020 was the year in which the use of technology in the real estate industry intensified. Thus, it is expected that this situation will not change in the real estate market in 2021. See the main resources used by the industry:
CRM or Customer Relationship Management
CRM tools were already used in real estate agencies even before the pandemic. However, its use intensified during social isolation. This feature allows brokers to have greater control over their relationship with customers. This is reflected in sales productivity, in addition to allowing a broad view of the strengths and weaknesses of a business.
A key tool for 2020 was virtual visitation. This feature allows the person to visit the property virtually, taking a 360º tour of the property. It comes very close to the actual visitation, optimizing the time of the broker and the client. Being able to visit the apartment at any time of the day, it is practical and more economical, being a big bet for 2021.
Launch and online sales
The virtual launches were very important for the real estate market in 2020. With the distance restrictions, the physical stands became unviable and the solution was the launches and fairs completely online. They allowed customers to visit the units and follow up on plans to acquire a property.
Even if life returns to normal in 2021, virtual launches must continue simultaneously with physical ones. This is because, they allow a greater reach of customers, since not everyone can attend in person.
2020 was also the year of Inbound Marketing. It allowed real estate agents to demonstrate their authority over the real estate business, increasing reliability with customers. This strategy was already widely used before the pandemic, but its importance was greater in times when the internet was the main one, and in many cases the only form of communication with potential customers.
Thus, paid advertisements, content on search engines, more agile websites and various webinars were used by companies in the industry to boost sales and reach new buyers. Casa Mineira Imóveis, for example, has a blog where it deals with matters about the real estate market.
Real estate financing
A major attraction of the real estate market in 2021 are the real estate financing options in Blue World City. With the reduction in interest rates on the part of banks, credit for real estate was once again attractive. This drives the sale of real estate.
Caixa, the bank with the lowest financing interest rate, for example, reduced the floor to 6.25% per annum plus the reference rate (TR). Private banks also followed this reduction, with rates ranging from 6.90% to 6.99%. In addition, financial institutions have created new types of real estate credit. The financing can be corrected by the Referential Rate IPCA – Extended National Consumer Price Index, Fixed Rate and, now by savings. With these stimuli, the number of real estate financing grew.
In view of this scenario, real estate experts believe that interest rates will rise in the second half of 2021. Thus, the forecast is for a favorable market scenario, especially in the first quarter of the year, with low interest rates and excellent opportunities.
Profile of the buyer of real estate in 2021
A big bet for the real estate buyer in 2021 is that of investors. This trend can be explained by the reduction in profits from traditional funds. Thus, stock investors are expected to look to the real estate market for a better source of income.
In addition, the profile of buyers is also changing. That’s because, young people between 30 and 35 years old are looking for real estate. For them, the construction companies have bet on compact apartments, located close to public transport. In addition, by spending more time at home, people have discovered the importance of functional and cozy homes and are more demanding about it.
Furthermore, it is important to pay attention to the profile of the consumer 3.0. Understanding the purchasing patterns of these new customers is crucial to closing deals. The profile of the new consumer is that of someone extremely connected to online channels, which reinforces the importance of digitizing real estate processes.
Customers increasingly demanding, and used to solving all their questions online dominate the market in 2021. They demand quick and efficient responses in the face of communication channels, especially on social networks.
Thus, four types of consumer profile in the real estate market are divided:
- Anyone looking to build a family estate;
- Who seeks better quality of life with newer properties;
- Who wants more comfort with a bigger and better located property;
- Who wants to invest in the real estate market.
Trends in the real estate market in 2021
2020 was a year of many uncertainties. All plans were modified in the face of a global health crisis that made it impossible for settlements and in many cities, for people to leave home. Thus, several markets had to reinvent themselves and use virtual resources to maintain their activities.
For 2021, we realize that the implementations of new digital resources in 2020 remain. This is because, brokers and real estate agents have found a greater public reach with these tools, in addition to savings in some cases. In addition, interest rates and better financing conditions create high expectations for the real estate market in 2021. It is expected to be a year of many sales and new launches. The objective is to meet the new requirements of an increasingly demanding consumer.