Brazil's abolition of 6‑day workweek likely to push home prices up 5% and delay construction
The Brazilian Chamber of Deputies approved a constitutional amendment (PEC) that eliminates the 6×1 work schedule, reducing the standard week from 44 to 40 hours and guaranteeing two rest days. Business leaders across retail, industry, services and agriculture warn that higher labor costs could compress margins unless productivity is improved.
The real‑estate sector warns of broader price effects. ABRAINC estimates that construction costs could rise 4.9%‑6.4%, adding 1%‑2% in indirect expenses, and that housing prices may increase by more than 5%, potentially putting 12.5 million prospective buyers out of reach. The same study projects construction timelines to lengthen 9%‑10% (about one extra month for a typical ten‑month project).
Analysts stress that firms must shift from a “pay‑by‑the‑hour” mindset to lean, efficiency‑driven operations to absorb the change without cutting training or increasing overtime, which could raise costs further.