Brazil's construction market is expected to remain robust in 2026, driven by strong demand for low-income housing projects, according to Renato Correia, president of the Brazilian Construction Industry Chamber (CBIC). Despite a mature construction sector, supported by increased competition in supply chains, the market faces challenges. High interest rates and family debt have impacted retail sales of construction materials to individuals, while middle-class and upper-middle-income housing construction may see fewer starts in 2025 due to higher interest rates. However, the market is expected to be resilient, and the prospect of falling interest rates in 2026 could boost high-income launches and sales. Key obstacles include a scarce labor force, a heavy tax system for business activities, and the bureaucracy involved in approving and municipal building permits, which can take up to 18 months, significantly longer than the ideal 120 days. These factors, along with an excess of steel in the market and increased imports from Egypt, have contributed to price volatility and intense competition among producers.
