Construction Costs Indexes INCC

The Construction Costs Indexes are sub-divided in residential construction and engineering public works or infrastructure indexes. The main indexes relative to residential construction are: National Construction Cost Index (INCC), Construction Cost Index of Rio de Janeiro (ICC-RJ) and Buildings Index.

• National Construction Cost Index (INCC)

It is one of the three items that constitute the General Price Index (IGP), representing 10% of the index. Its publication started in February 1985 as a result of the unification of the older Construction Cost – Rio de Janeiro Index (ICC-RJ) with the Building Index series that is geographically more inclusive. Like the IGP, there is also the INCC version for the market (INCC-M).

• Construction Cost Index – Rio de Janeiro (ICC-RJ)

It is the oldest index referring to residential construction calculated by the FGV. Published since 1950, with estimates down to 1944, it was one of the thee fractions of the IGP until January 1985. It is still published separately but it is also a fraction of the INCC.

• Building Index

It was started in 1974 including 8 capital cities, allowing a larger territorial inclusion of the evolution of the construction costs. Although it is coincident with the INCC, it is also published for those who use it due to contractual reasons. It is also known as the 35 column of the Revista Conjuntura Econômica.

The construction costs include also the engineering public or infrastructure works. The main indexes calculated by the FGV are: Road and Hydroelectric Works. These indexes are calculated by the FGV through agreements with public organs.

Real Estate and construction in Brazil.

Newly available mortgages and the rise of the middle class are fuelling a construction boom but, as ever, wealth is failing to reach the favelas

Nowhere is the gap between rich and poor in Brazil more graphically illustrated than in the favelas of Rio de Janeiro or São Paulo. Rural Brazilians in search of employment have flooded into the major cities over the past few decades, only to end up living in squalor. The shortfall in housing is now estimated at up to 10million homes. Yet Brazil’s construction industry is booming.

In São Paulo, it is impossible to find cranes to rent, complains Sérgio Newlands Freire, who heads the estate agency group Brasil Brokers. Brasil Brokers is one of a number of real estate companies that have joined the IPO rush over the past year or so. Around a quarter of the record Brazilian stock offerings in 2006 came from the real estate sector, including house builders Gafisa and Cyrela, bringing much-needed foreign investment into the industry. The growth of a new middle class, along with the introduction of long term mortgages, previously unavailable, is expected to fuel a boom in housing construction. That will have a knock-on effect on employment in an industry that traditionally employs large numbers of unskilled workers. Many construction companies are starting to introduce training programs for their workers.

In commercial property, emerging markets will continue to attract “healthy levels” of investment, according to the recent Rics global property survey. “The emerging giants of Brazil, India, China and Russia now account for more than 50% of the world’s GDP, and have started to devour ever-increasing proportions of global property transaction activity,” the report says.

Investors eager to gain exposure to these booming markets have been “unfazed” by the volatility and economic weakness of financial systems, which so far have largely been confined to the developed world. Indeed, emerging economies such as Brazil are in better shape, according to Rics, as buffers of reserves have been built up on the back of rising oil prices and trade gains. As well as attracting overseas interest, the new economic stability in Brazil has encouraged longer term investments.

But the real estate industry still has a long way to go, says Jose Auriemo Neto, president of property development group JHSF. “It’s a country in which there’s still a lot to be done,” he says. “It’s important that Brazil has a positive outlook and is able to gain the long-term trust of investors.

Fortaleza Real Estate

Cumbuco Breezes construction start

The construction of Cumbuco Breezes has started. The entrepreneurs has set up an administrative building and fencing the whole area. Calculations have been made to see how earth is needed to fill up the area and a well has been drilled for fresh water. We will follow the development and publish news about this construction on our webpage’s. For automatic news please sign up for our newsletter or rss feed.

Another beachfront property developing in Cumbuco!

 

Real Estate in Fortaleza Brazil

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When listing properties on our web page https://www.fortalezarealestate.com.br  we have direct contact with the owners or developers of new projects. This is very valuable to you as a buyer as many are trying to seek their luck in the real estate business featuring homepages selling properties in countries where they have poor knowledge or none at all. Make sure that you get all the right information from the beginning. We live and act in Fortaleza and can offer you valuable local information – please do not hesitate to contact us

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Fortaleza Real Estate
CRECI 5653