Brazil’s Cost of Construction Ends 2010 7.58% Higher
Brazil’s National Index of Construction Cost (produced by the Getúlio Vargas Foundation and the Institute of Economics) demonstrated a growth rate of 7.58 percent over 2010 – 4.36 percentage points higher than recorded in the whole year 2009 (3.22 percent). The December growth rate of saw a slight rise compared to the previous month from 0.59 percent to 0.36%.
Amongst the most notable increases were the costs of wiring which grew by 14.59 percent as well as labour which rose by 11.27 percent – reflecting an undersupply of qualified manpower. Paint and metal related material saw reductions over the year by 0.38 percent and 2.57 percent respectively.
The data also showed that Salvador, Belo Horizonte, Porto Alegre and São Paulo had the biggest rises. The Brasília, Recife and Rio de Janeiro indices decelerated the most over the year.
[...] ceilings that work in line with affordability levels; off-putting bureaucracy levels; the issue of rising construction costs placing difficulties on making projects viable in line with the market and the lack of suitable [...]