Minha Casa Minha Vida and vertical residences are the main bets in the real estate market, indicates research

Real estate market

Research presents main areas of investment, challenges and analysis of the current situation in the sector in Brazil

For entrepreneurs in the real estate market, the Minha Casa Minha Vida program and vertical residences are the sector’s main bets for 2024. The information comes from the research “What do real estate entrepreneurs expect from the market in 2024?”, developed in the period 29 from November 2023 to January 3, 2024. To consult the full survey, access the link.

The study interviewed 250 professionals in the sector, including those working in construction companies, developers, subdivision and urban development, architects, land owners, material suppliers and financial market professionals. The research was carried out by Grupo Prospecta in partnership with Sienge, a solution from Grupo Softplan specialized in integrated construction management.

Real estate market outlook for 2024

According to the material, 52% of professionals in the real estate sector understand that the Minha Casa Minha Vida program — resumed in 2023 — will be the most potential market niche of the year. Next are vertical residences (18%), the subdivision area (7%), the purchase of a second home (6%) and the development of planned communities (5%).

“For 2024, the Ministry of Cities plans to contract 187 thousand new homes in 560 municipalities through the MCMV. This expands the sector’s expectations for a year with a more heated market, with more buyers and greater access to government financing and subsidies”,

explains Cristiano Gregorius, Executive Director of Sienge.

Considering Brazil’s current economic panorama, the survey found that 48% of respondents understand that the real estate market is in a slow recovery period. There is, however, a certain optimism and hope for improvements, as 43% believe that the sector will go through a recovery phase with high growth.

There is also a great intention to invest in the segment: 89% intend to undertake or make new investments in 2024, with 49% planning to undertake in the vertical residence area, 10% in subdivisions and 8% in the horizontal housing and residential niche.

Investments by region

In 2023, Southeast (39%) and South (26%) were the main investment regions in the real estate sector, according to the research. Next, the Northeast (20%), Central-West (13%) and North (2%) stand out.

According to the interviews, São Paulo (19%), Santa Catarina (11%) and Minas Gerais (9%) are among the states with the highest frequency of companies operating in the segment.

The study also delved deeper into the biggest difficulties encountered in the day-to-day life of the real estate market. According to the professionals consulted, they are: bureaucracy in approving projects and licenses (12%), difficulty in accessing credit (12%) and the funding area (12%), which is responsible for raising financial resources for a given investment . In relation to the year 2023, bureaucracy, political instability and sales were the biggest challenges faced by the sector.

“We observed that the delay and complexity of the procedures involving the sale of properties, the approval of projects and the financial area are major pain points for this industry, which increasingly finds in technology and digitalization the necessary solutions for more efficient and efficient operations. strategic”,

concludes Gregorius.

*With information from consultancy

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