International construction market survey 2016
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Around the globe<br />
Brazil – São Paulo<br />
Construction weighed down by recession, but pockets of investment give a brighter outlook<br />
Economic overview<br />
Brazil’s economy remains mired in a deep recession<br />
following the fall in global commodity prices and political<br />
mismanagement. In 2015, GDP fell 3.6 percent and<br />
interest rates and inflation increased to 14.25 percent<br />
and ten percent respectively, while the Brazilian real<br />
has depreciated by 40 percent over the year.<br />
Construction <strong>market</strong> and trends<br />
The Brazilian <strong>construction</strong> industry as a whole is<br />
contracting as declining confidence and corruption<br />
scandals lead to a fall in investment, with the major<br />
infrastructure projects particularly affected. However,<br />
bright spots include the continued spending in the<br />
pharmaceutical and healthcare sectors, an expansion<br />
in investor acquisitions in the real estate and consumer<br />
goods sectors, and considerable interest in renewable<br />
energy investment.<br />
Future outlook<br />
Political uncertainty, tighter monetary policy, persistently<br />
low commodity prices and a lack of investor confidence<br />
are likely to prolong Brazil’s economic weakness, with an<br />
upturn not expected until 2017 or 2018. The central bank<br />
forecasts a further GDP contraction of 1.9 percent in<br />
2017, although the IMF prediction is almost double at 3.5<br />
percent. However, the ongoing weakness of the Brazilian<br />
real has significantly improved Brazil’s competitiveness in<br />
global <strong>market</strong>s for manufacturing and made the country<br />
a more attractive investment destination.<br />
<strong>International</strong> building costs per m 2 of internal area, in <strong>2016</strong><br />
BRL<br />
USD<br />
(exchange<br />
rate: 4.04)<br />
Airports (building only)<br />
Domestic terminal, full service 6,700 1,660<br />
Low-cost carrier terminal, basic service 4,700 1,160<br />
Car parks<br />
Multi-storey above ground 1,800 450<br />
Multi-storey below ground 1,900 470<br />
Commercial<br />
Offices – Business Park 2,800 690<br />
CBD Offices – up to 20 floors medium (A-Grade) 2,800 690<br />
CBD Offices – high-rise prestige 6,000 1,490<br />
Education<br />
Primary and secondary 2,800 690<br />
University 3,920 970<br />
Hospitals<br />
Day centre (including basic surgeries) 3,500 870<br />
Regional hospital 6,800 1,680<br />
General hospital (e.g. city teaching hospital) 7,500 1,860<br />
Hotels<br />
3 Star travellers 3,400 840<br />
5 Star luxury 5,800 1,440<br />
Resort style 5,500 1,360<br />
Industrial<br />
Warehouse/factory units – basic 2,050 510<br />
Large warehouse distribution centre 2,100 520<br />
High-tech factory/laboratory 5,250 1,300<br />
Residential<br />
Individual detached or terrace style house – medium standard 1,950 480<br />
Individual detached house – prestige 3,500 870<br />
Townhouses – medium standard 1,950 480<br />
Apartments low-rise – medium standard 2,100 520<br />
Apartments high-rise 2,600 640<br />
Aged care/affordable units 2,340 580<br />
24<br />
Turner & Townsend
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