Summary

The Brazilian construction industry grew at a CAGR of 8.58% for the period 2003-2008. Non-residential sector's market share was 81.3% in 2008, while residential sector accounted for the balance 18.7%. Brazilian construction market has recorded a healthy growth rate in the past on account of strong economic growth coupled with domestic demand. The total value of construction projects in Brazil in 2008 was US$75.6 billion, following expansion at a compound annual growth rate (CAGR) of 8.58% since 2003. This positive CAGR was primarily driven by strong annual growth from 2006 to mid 2008. Both residential and non-residential sectors have remained relatively strong, except for the last two years of decline. This was because sources of private finance have nearly dried up in the background of economic instability. The construction market especially declined in the later part of 2008 and is expected to further decline in 2009. Non-residential construction was the most valuable sector of the Brazil construction market. Infrastructure construction and non-residential construction services have primarily driven the demand during 2005-2008. Non-residential construction accounted for 81.3% with a value of US$61.4 billion of Brazil's construction market in 2008, compared to 80.9% in 2006. But, infrastructure investments have witnessed a considerable decline during the year 2008, especially from private investors. Private projects worth US$4.9 billion have been delayed since September 2008. Residential construction witnessed good growth rates during 2006 to mid-2008 period, fuelled by strong demand from lower and middle class income groups. But, the contraction witnessed in the Brazilian economy has impacted residential segment also. It has dampened consumer demand for residential properties in 2008 leading to increase in pre-sales cancellations and lower residential sales. Residential construction accounted for 18.7% of the Brazilian construction market's value in 2008.

Table of Contents

Brazil Construction Market Analysis
Brazil Construction Competitive Landscape
Leading Brazil Construction Companies
Brazil Construction Market Forecast
Appendix