Brazil: Land Of Opportunity For The Construction Industry
Brazil’s housing gap hits 6M units, yet its construction sector drives nearly 10% of GDP. From government incentives to booming infrastructure projects, the market brims with opportunities—discover why now is the time to invest and build in Brazil.
Supply and Demand – An Overview of the Real Estate Deficit in Brazil
Bearing in mind the low/medium income brackets that buy properties via government incentive programs for home ownership, such as Casa Verde Amarela (CVA) and Sistema Brasileiro de Poupança e Empréstimo (SBPE), the housing deficit in Brazil remains very large - reaching 6 million units in 2021, according to BTG Pactual's report on the sector's scenario for the same year. The state of São Paulo has the largest housing deficit in the country, with approximately 1.22 million units (48% in the capital's metropolitan area alone).
Still, according to the sameBTG Pactual report, at the end of the third quarter of 2021, the total housing stock in the country was only 204,000 units, and sales until that period totaled 188,000 units, an increase of 23% per year, despite the high levels of unemployment - around 12% nowadays, but in a downward trend - which impacts household budgets.
Not to mention the potential demand in the infrastructure sector, with several promises of construction developments in sanitation, irrigation, and infrastructure auctions coming to fruition that will undoubtedly positively impact the results of the industries in the sector.
Additionally, civil…
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