Brazil Real Estate Sector Warns of Weak Outlook After Rate Cut to 14.25%

Executives at the ABRAINC 2026 summit in São Paulo said Brazil’s real‑estate market has lost optimism following the Central Bank’s third interest‑rate cut, which lowered the Selic to 14.25% per year. Luiz França, CEO of the Brazilian Association of Real‑Estate Developers (ABRAINC), called the new level still too high and urged further reductions. Ricardo Gontijo, CEO of Direcional, noted that the higher financing cost hampers production and lengthens the home‑buyer cycle, warning that high‑end housing demand will suffer over the next two years while compact apartments continue to sell. Alex Veiga, CEO of Grupo Patrimar, added that mortgage rates outside the subsidised “Minha Casa, Minha Vida” programme range between 12% and 14% for the first half of 2026, and that a more reasonable rate would revive financing activity. Specialists described the cut as modest and highlighted ongoing inflation concerns.