The Brazilian construction sector, after a slowdown last year, is projected to perform better in 2026, with a growth estimation of 2%, marking the third consecutive year of expansion according to the Brazilian Chamber of Construction Industry (CBIC). This growth is expected to be driven by a combination of factors, including anticipated decreases in interest rates, an increased supply of housing credit, and significant investments in infrastructure projects.

Key initiatives supporting this growth include a record budget for the Government Severance Indemnity Fund (FGTS) specifically for housing, renewed contracts under the Minha Casa, Minha Vida program, a new financing model utilizing savings funds, and public efforts aimed at home renovations. Notably, the Reforma Casa Brasil program is estimated to inject around R$ 40 billion into the sector, which combined with expanded limits of the Housing Financial System (SFH), will further enhance mortgage credit availability for potential homebuyers.

The overall expectation is a significant uptick in housing credit, which could positively influence both home ownership rates and the construction market. The planned investments and financial programs are positioned to not only stimulate growth within the construction sector but also cater to broader economic recovery efforts in the country, reflecting a strategic approach to bolster the housing market in Brazil.