DUBLIN, Jan. 11, 2024 /PRNewswire/ — The “Brazil Construction Industry Databook Series – Market Size & Forecast by Value and Volume (area and units), Q2 2023 Update” report has been added to ResearchAndMarkets.com’s offering.
The construction industry in Brazil is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 4.6% during 2023-2027. The construction output in Brazil is expected to reach BRL 866.659 billion by 2027.
Investment in sectors like transport, housing, renewable energy, and oil is expected to drive the growth of the Brazilian construction industry over the next five years. In H2 2023, the government unveiled a US$76 billion public spending program over the next four years, to improve the infrastructure in Brazil. In addition to this, the government is also seeking to boost the availability of affordable homes over the next few years.
These initiatives, coupled with the investment from global players in the commercial sector, will emerge as the primary growth driver of the Brazilian construction market from the short to medium-term perspective.
The government plans to infuse US$76 billion into the infrastructure space to spur economic development
The Brazilian President, in H2 2023, unveiled an ambitious US$76 billion spending plan over the next four years. By increasing investment in construction, infrastructure projects, and ecological transition, the government aims to accelerate the growth of the economy through state spending. Some of the target areas include transport, energy, healthcare, education, water, and sewage.
Termed as the Growth Acceleration Programme, the initiative draws inspiration from the massive stimulus package announced by the United States President Joe Biden. In addition to state spending, the Brazilian President is also expecting significant investment from the private sector and state-controlled enterprises. Together, the government forecast the total value to reach US$287 billion over the next four years, leading up to 2026. The significant spending in the construction and infrastructure space is, therefore, expected to accelerate the growth of the broader market in Brazil over the next three to four years.
The Brazilian government has set a target of constructing two million affordable homes by 2026
The government, in February 2023, restarted the housing program Minha Casa, Minha Vida for lower-income people. The focus of the affordable housing program is to complete the unfinished works, which will subsequently aid the economic growth and development in Brazil.
The new rules announced by the government, including reduced interest rates and increased subsidies for property purchases, will enable the government’s goal to build two million housing units by 2026. The changes to the Minha Casa, Minha Vida program were authorized by the government in July 2023 and are expected to spur economic development from the short to medium-term perspective.
Notably, the increase in down payment discounts on the purchase of properties is projected to serve as the driver for home purchases among residents in the Northern and Northeastern regions. The value of the discount has been increased from US$10,048 to US$11,634. The government is also discussing the expansion of the Minha Casa, Minda Vida program.
Currently, the affordable housing program is designed for families having a monthly income of about US$1,692 or R$8,000. The government is considering extending the limit further, beyond R$8,000, to bring more households under the affordable housing program. The publisher expects the new and renewed scheme to further aid the growth of the residential construction market from the short to medium-term perspective.
Higher consumption of materials like aluminum is expected to drive prices higher in H2 2023 and Q1 2024
Brazil reported a significant increase in the consumption of materials like aluminum in H1 2023. According to the Brazilian Aluminum Association, the consumption has been increasingly driven by the expanding wind and solar energy capacity.
Additionally, the buoyant real estate market is another contributor to the rising consumption of aluminum in Brazil. In H1 2023, aluminum consumption increased by 7% in civil construction. Other sectors, including the transportation industry, have also experienced higher aluminum demand during the period.
With the trend projected to further continue from the short to medium-term perspective in the Brazilian market, including the construction industry, demand for aluminum is poised to further increase in Q1 2024. The growing demand will, therefore, also support the rise in prices of aluminum over the next few quarters in the Brazilian market.
This market intelligence report provides a detailed view of market opportunities in the building and infrastructure construction industry at country level. With over 100+ KPIs, covering growth dynamics in building construction, infrastructure construction, construction cost structure analysis and analysis by key cities in Brazil, this databook offering primarily provides data-centric analysis with charts and tables.
This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2018-2027 in Brazil.
KPIs covered include the following:
- Market size by value
- Market size by volume of construction
- Number of units
- Brazil Economic Indicators
- Brazil Top Cities Construction Data
- Brazil Residential Building Construction Coverage
- Brazil Residential Green Building Construction Coverage
- Brazil Commercial Building Construction Coverage
- Brazil Commercial Green Building Construction Coverage
- Brazil Industrial Green Building Construction Coverage
- Brazil Institutional Building Construction Coverage
- Brazil Institutional Green Building Construction Coverage
- Brazil Infrastructure Construction Sectors
- Brazil Green Infrastructure Construction
- Brazil Construction Cost Structure Analysis
For more information about this report visit https://www.researchandmarkets.com/r/gyhuat
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SOURCE Research and Markets