Property is the best investment option during the pandemic – Wire Real Estate

Property is the best investment option during the pandemic

Jun 2, 2020

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Since the first case of COVID-19 in Brazil, the Ibovespa index has devalued 28%, returning to the level of the years 2017/2018, at the same time that interest rates followed trajectory of cuts by the Central Bank, reaching the historic minimum record for Brazil, with the expectation of a further cut at the next meeting and could reach less than 2.5% pa by the end of 2020. Still in this movement, the real depreciated 21% against the dollar.

The fact is that the advent of Covid-19 instigated a deep financial crisis, which, according to some experts, is the biggest crisis since the Great Depression.

However, even with this scenario, the real estate market was not affected. In April, the FipeZap index, which tracks the behavior of the average sale price of properties in 50 cities in Brazil, increased by 0.21% in the sale prices of residential properties, while inflation in the same month was negative ( -0.17%).

Paulo A. Cruz , CEO of UP Real Estate, a high-end real estate company based in São Paulo and branches in the USA, reiterates the positive scenario for the market. “There was no reduction in the price of real estate. Demand remains resilient and the interest rate at the current level is very positive, both for the client who wants to finance, and for that client looking for an option in their properties for their investments”.

In recent months, the phrase “Stay at Home” has been one of the most heard and spoken and there is no denying that the pandemic has profoundly altered the dynamics of personal relationships. Staying at home for a longer time makes people reevaluate their priorities and, at this moment, investing in their own residence means having a better quality of life. In addition, recent statements by Twitter in the US and XP in Brazil demonstrate that the home-office regime should remain, even after quarantine.

However, most people who need to work remotely today do not have a home space to call an office. It is the kitchen countertop, the dining table or the corner of the sofa that has been transformed into a home office on your lap, which used to work, nothing looks like what would be an ideal home-office.

It is because of these new needs that according to Paulo A. Cruz , the demand for more space has been growing since the beginning of the quarantine. “The client in the city of São Paulo wants, in addition to the space for their home-office, contact with nature or private leisure – it is because of this that the demand for roofs and houses, which has always been lower, has increased considerably. the demand for a second home, whether in the countryside or on the beach, has never been so heated – people are looking for a refuge “.

These are the factors that demonstrate that even in a crisis scenario, housing is fundamental and that the real estate market, as well as investments in this segment, is safe and resilient. Cruz complements “Today, any low-risk financial investment has a yield well below the income that can be obtained from rent. In addition, the property is valued over time, which therefore makes it a safer investment today. “

About UP Real Estate

Specialized in buying, selling and renting high and medium standard properties, UP Real Estate operates in the national and international markets. The biggest differentials are in personalized service, with a focus on excellence in customer service and expertise on real estate investments. The company, which manages a portfolio of R $ 2.7 billion of properties, also offers services such as real estate appraisal, expatriates assistance, including in their native languages ​​(English, Spanish and Italian) and property management. Learn more: .

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