In a time of uncertainty and major economic and political upheaval, the market is hoping for a resumption of growth that can offset losses.
Still with a considerable degree of anxiety, many businesspeople discuss the current situation in the country and try to anticipate what will happen to the construction industry in 2018.
Even though no one can truly say what will happen, it is possible to evaluate what has happened and speculate about the short-term future based on some signs perceived in the national context.
Over the past four years, the construction market has seen a significant decline. Following the downward trend in the economy, the situation has become complicated, and many companies have faced difficult times.
Among several factors, three factors marked years of low business volume and significant investor fears. The first was the weakening of mortgage access programs. After a period marked by a renewed reduction in the housing deficit, the pace of growth slowed.
Another relevant aspect was the increase in unemploymentWith less money circulating and a lot of uncertainty, families across the country have seen their incomes shrink.
All of this leads to the third point: the decline in the number of new projects. Lacking confidence in the consumer market and facing declining demand, entrepreneurs decided to reduce their investment in construction sites. Many shifted their resources to other financial options and funds.
After a period of intense political turmoil, albeit without ideological debate, the current situation is less uncertain. It's important to remember that 2018 is an election year, so it's natural that many companies are still assessing the situation to define medium-term labor policies.
In any case, the drop in interest rates has been an encouraging factor for the construction market. This is because banks will likely reduce the rates applied to real estate loans, which is good for the productive sectors, buyers, and also for increasing sales. sales.
The reduction in interest rates also has another significant impact: the reduction in the profitability of financial products. With lower profits, keeping money invested in banks, the economy is likely to start moving again.
Important figures and entities such as, for example, Pedro Fernandes (president of the Brazilian Real Estate Market Association); Aurélio Luiz de Oliveira Júnior (president of the Civil Construction Industry Union of the Western Region of the State of São Paulo); Edson Martins Antônio (director of operations at Athena Construções); the Research Institute Foundation and the Brazilian Association of Real Estate Developers; in general, believe that the market has begun to react favorably, and expectations are for improvements in 2018.
Everything indicates that, even without a very sharp increase, the construction sector in 2018 will be able to achieve much more favorable results than those achieved in recent years.
And you, what's your outlook and plans for this year? Any projects you need to take off the shelf? Do you need to review your budget or make any adjustments? Contact us so we can help you make 2018 a more productive year.
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