Market Size of Brazil Construction Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 8.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Brazil Construction Market Analysis
Brazil's construction market is expected to register a CAGR of approximately 8% during the forecast period. The market is driven by low-interest rates and the government's housing programs such as "Casa Verde e Amarela". Despite Brazil's high budget deficit and weak economic conditions due to the political crisis in the country, the authorities released an infrastructure development program. The low-interest-rate environment will encourage buyers to return to the market and builders to take on new projects.
The COVID-19 pandemic interrupted the growth of the market. Although construction activity continued in most states, increased uncertainty has prompted builders to delay the launch of new projects while buyers delayed their purchase decisions. The Residential and Commercial sectors are expected to accelerate the construction industry during the forecasted period. The industry is set to witness stable growth during the forecasted period due to recovering labor market, credit growth, and favorable agenda by the government with its extensive support for privatization which will boost the state enterprises and big international players investing and allocating the funds to infrastructure development for roads, ports, and airports.
Despite strong housing demand, it is expected that the shortage of building materials and rising prices will curb investment in the housing market and the entire industry in the short term. Other factors hindering investment in the industry include high levels of bureaucracy and corruption scandals.
