The real attractiveness of the market

When the Real Estate market starts to become a competitive and attractive market for investors.

The healthy and attractive real estate market works on two fronts:
  
Primary market – Consisting only of the launching market for new real estate developments

Secondary market – Market for buying and selling used properties, together with the rental and leasing market.

The Brazilian market for more than two decades basically lived with the primary market, and in a small way, in most large cities. The secondary market showed a low performance in both residential rentals and commercial rooms, being more relevant in renting stores in shopping centers, the only sector that prospered in the two decades preceding 2007.
After the real estate boom in the years 2007 to 2010, and more recently with the better equalization of construction costs in the years 2011 and 2012, the market begins to show signs that the real estate sector is going to enter a new era. And what will this new era be?
The new era of the Brazilian real estate market is beginning to shape itself in an increasing way in the city of Rio de Janeiro, where the secondary market in various parts of the city is intensifying with robustness. In this city, what has been happening for a long time in the big cities of the world is verified, where the address is the one who definitely controls the valuation of the property.
The south zone of Rio is an example; places like Copacabana, Leblon, Ipanema, Gávea and Lagoa have properties with extremely high value, costing a m2 more than the most sophisticated launches in the city, which was concentrated in Barra da Tijuca in recent years. In this way, their rents also followed the recovery.
The review magazine in its most recent edition, number 1041, from 05/15/13, brings a comprehensive survey of the fluctuation of the new and used market in several important cities in Brazil. And he finds in the City of Rio the appreciation of used properties that, on average, cost more per m2 than that of launches.
Average m2 launches: R $ 5,800.00 average m2 of used properties R $ 8,625.00.
This dynamic means that the primary market remains strong in other regions, since in these regions there are no more available land or cheap properties to be demolished.
The law of supply and demand defines the direction of appreciation in the secondary market.
Strong secondary market means also strong primary market, which makes the Real Estate Market an excellent deal