The São Paulo State Construction Industry Union (SindusCon-SP), in partnership with the Getulio Vargas Foundation (FGV), released data indicating that the sector is expected to grow by 2.9% in 2024. The significant reduction in interest rates, combined with lower volatility in material costs, may boost the construction industry.
In 2023, the sector added 250,000 jobs. This workforce has been trained and qualified, which will have positive effects on productivity this year. According to SindusCon-SP, the new rules for property and income taxes, tax incentives, operational transparency, and specific taxation for the sector approved in the tax reform are expected to benefit the sector when implemented.
The housing-oriented construction sector will gain even more momentum this year. The portion of the budget allocated by the FGTS to this area will be a record high, with R$ 105.65 billion. Meanwhile, the Minha Casa, Minha Vida program will receive R$ 9.95 billion in funding. Investment in infrastructure through PAC projects and projects encouraged by municipal elections is also expected to increase significantly.
The National Bank for Economic and Social Development (BNDES) expects to increase the volume of financing for large infrastructure projects by 25% to 30% per year over the next three years. The priorities will be projects focused on sanitation, forest restoration, and urban mobility. With inflation within the target ceiling, construction material prices are expected to show lower volatility in 2024.
Due to projections indicating economic growth, the environment will also be more favorable for the industry to invest in expansions and new projects. In the composition of the estimated 2.9% growth in the construction sector’s GDP, after the infrastructure sector (+6%), the best-performing sector will be companies (+3.7%), followed by buildings (+3.5%), specialized services (+2.5%), and household consumption (+1.5%).
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