Minha Casa, Minha Vida boosts optimism in the construction sector in 2024 – 01/29/2024 – Market

The government program Minha Casa, Minha Vida encourages optimism in the construction sector in 2024, according to research carried out by FGV Ibre (Brazilian Institute of Economics of the Getulio Vargas Foundation).

Of the sector’s entrepreneurs interviewed, 53.7% have positive expectations for 2024.

According to the December Construction Survey study, Minha Casa, Minha Vida “has already started to move the market, boosting launches and sales in the last months of the year, pointing to a resumption of the cycle that was beginning to weaken. Among infrastructure companies , there is an entire investment program that should contribute to the activity continuing to grow throughout 2024”.

The federal government program subsidizes the purchase of a house or apartment for families with income of up to R$8,000 per month, with interest rates lower than the market.

Minha Casa, Minha Vida was already one of the three reasons for the growth in real estate launches in the country in the second half of last year, alongside the discounts offered by construction companies and the evolution in the high-income segment. In terms of infrastructure, the increase in demand was due to private and public investments, says FGV Ibre

The survey shows that, among optimists, 71% see a positive outlook for the sector, while 30% believe in an increase in revenues in 2024 and 24.3% believe in an improvement in the macroeconomic scenario.

The Construction Survey is carried out monthly by FGV Ibre to gather a set of information used to monitor and anticipate economic trends in the sector.

Optimism in construction is, however, lower than the average recorded among entrepreneurs in industry, commerce and services (59.4%). It is smaller than that of industry (66.9%) and services (58.5%), but greater than that of commerce (50.6%).

If 53.7% have positive expectations, there are 14.7% with a pessimistic view of 2024 and 31.6% who were unable to respond.

Among those who do not believe in a good year, 85% attributed their disbelief to uncertainty or a lack of confidence in the federal government’s economic policy.