[email protected] +44 20 8123 2220 (UK) +1 732 587 5005 (US) Contact Us | FAQ |

Construction in Brazil - Key Trends and Opportunities to 2024

September 2020 | 53 pages | ID: C9FFFF27A25EN
GlobalData

US$ 1,495.00

E-mail Delivery (PDF)

Download PDF Leaflet

Wire Transfer
Checkout Later
Need Help? Ask a Question
Construction in Brazil - Key Trends and Opportunities to 2024

SUMMARY

GlobalData has maintained its forecast of a 6% contraction for Brazil’s construction industry in 2020, and projection of a 2.1% contraction in 2021. While the country continues to struggle to contain infection rates, the impact of the Coronavirus (COVID-19) outbreak on the construction industry has been less severe when compared to other countries in the region, as nearly all building activities have been allowed to carry on since the start of the pandemic. According to the Brazilian Institute of Geography and Statistics (IBGE), the construction industry in Brazil posted a year-on-year (y-o-y) decline of 11.1% in Q2 2020, compared to a y-o-y decline of 1% in the previous quarter, bringing the sector to a level of activity not seen since 2006.
Recent data has shown some signs of a recovery in the industry, due to the continuity of the sector’s activities, record-low interest rates and an increase in access to financing for new homes through initiatives such as Brazilian Savings and Loan System (SBPE), the 'Casa Verde e Amarela'.
Data released by the Brazilian Association of Real Estate Credit and Savings Entities (Abecip) showed that the number of units financed with SBPE resources in the first half of 2020 amounted to 160,700 units - the best performance since 2015 - while the volume loans rose by 28.6% in the first six months of 2020, in comparison to the same period of 2019. At the same time, the indices measuring activity levels and employment continued on a path to recovery, while operating capacity utilization is near pre-pandemic levels.
Nevertheless, GlobalData’s currently foresees that construction output in Brazil will not return to 2019 levels until 2023, as heightening political uncertainty, widening fiscal deficits and rising debt burdens in the face of weak growth and doubts over the duration of the pandemic will restrain government efforts to encourage both private and foreign investment, while leaving no space in the budget for investing in public works. Other issues such as high levels of bureaucracy and difficulties that hinder investment and increase the cost of construction in the country are also expected to impact the construction industry outlook.
The costs of materials such as steel and cement have registered significant increases in their prices in recent months, hampering the planning of works and start of new projects. The National Index of Construction Cost - Materials and Equipment, estimated and released by the Get?lio Vargas Foundation (FGV), registered an increase of 1.8% in August, which was the highest since September 2008 (1.9%).
This report provides detailed market analysis, information and insights into Brazil’s construction industry, including -
  • Brazil’s construction industry's growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Brazil’s construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline
SCOPE

This report provides a comprehensive analysis of the construction industry in Brazil. It provides -
  • Historical (2015-2019) and forecast (2020-2024) valuations of the construction industry in Brazil, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants
REASONS TO BUY
  • Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategy using GlobalData's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.
1. EXECUTIVE SUMMARY

2. CONSTRUCTION INDUSTRY: AT-A-GLANCE

3. CONTEXT

3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 COVID-19 Status

4. CONSTRUCTION OUTLOOK

4.1 All Construction
4.2 Commercial Construction
4.3 Industrial Construction
4.4 Infrastructure Construction
4.5 Energy and Utilities Construction
4.6 Institutional Construction
4.7 Residential Construction

5. KEY INDUSTRY PARTICIPANTS

5.1 Contractors
5.2 Consultants

6. CONSTRUCTION MARKET DATA

7. APPENDIX

7.1 What is this Report About?
7.2 Definitions
7.3 GlobalData Construction

LIST OF TABLES

Table 1: Construction Industry Key Data
Table 2: Brazil, Key Economic Indicators
Table 3: Brazil, Commercial Construction Output by Project Type (Real % Change), 2015-2024
Table 4: Brazil, Top Commercial Construction Projects by Value
Table 5: Brazil, Industrial Construction Output by Project Type (Real % Change), 2015-2024
Table 6: Brazil, Top Industrial Construction Projects by Value
Table 7: Brazil, Infrastructure Construction Output by Project Type (Real % Change), 2015-2024
Table 8: Brazil, Top Infrastructure Construction Projects by Value
Table 9: Brazil, Energy and Utilities Construction Output by Project Type (Real % Change), 2015-2024
Table 10: Brazil, Top Energy and Utilities Construction Projects by Value
Table 11: Brazil, Institutional Construction Output by Project Type (Real % Change), 2015-2024
Table 12: Brazil, Top Institutional Construction Projects by Value
Table 13: Brazil, Residential Construction Output by Project Type (Real % Change), 2015-2024
Table 14: Brazil, Top Residential Construction Projects by Value
Table 15: Brazil, Key Contractors
Table 16: Brazil, Key Consultants
Table 17: Brazil, Construction Output Value (Real, US$ Million)
Table 18: Brazil, Construction Output Value (Nominal, BRL Million)
Table 19: GlobalData Construction Market Definitions

LIST OF FIGURES

Figure 1: Latin America, Construction Output (Real % Change), 2020
Figure 2: Brazil, Construction Projects Pipeline by Sector (US$ Billion)
Figure 3: Brazil, COVID-19 Confirmed Cases
Figure 4: Brazil, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2015-2024
Figure 5: Brazil, Construction Output Value, by Sector (Real, US$ Million), 2015-2024
Figure 6: Brazil, Construction Value-Add (BRL Billion, Chained at 1995 Prices)
Figure 7: Brazil, Gross Fixed Capital Formation (BRL Billion, Chained at 1995 Prices)
Figure 8: Brazil, Construction Activity Index
Figure 9: Brazil, Business Confidence Index (ICEI)
Figure 10: Brazil, Operational Capacity Utilization in the Construction Industry
Figure 11: Brazil, Construction Projects Momentum Index
Figure 12: Brazil, Commercial Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 13: Brazil, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 14: Brazil, Services Volume and Revenue Index, % Change Y-O-Y, (2014=100)
Figure 15: Brazil, Total Retail Sales Volume and Revenue Index, % Change Y-O-Y, (2014=100)
Figure 16: Brazil, Industrial Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 17: Brazil, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 18: Brazil, Manufacturing Value-Add (BRL Billion, Chained at 1995 Prices)
Figure 19: Brazil, Industrial, Manufacturing and Mining Production Index, (2012=100, % Change Y-O-Y)
Figure 20: Brazil, Capacity Utilization in the Manufacturing Sector
Figure 21: Brazil, Total Exports (US$ Billion)
Figure 22: Brazil, Infrastructure Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 23: Brazil, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 24: Brazil, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 25: Brazil, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 26: Brazil, Institutional Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 27: Brazil, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 28: Brazil, Residential Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 29: Brazil, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 30: Brazil, Real Estate Value-Add (BRL Billion, Chained at 1995 Prices)
Figure 31: Brazil, Residential Units Launched (% Change Y-O-Y)
Figure 32: Brazil, Residential Units Sold (% Change Y-O-Y)
Figure 33: Brazil, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 34: Brazil, Headquarters of Key Consultants (% of Total Project Pipeline)


More Publications