Brazil real estate market shows varied regional growth and cost pressures

The Brazilian residential real estate market is experiencing varied trends across different regions. According to the FipeZAP Index, Vitória (ES) led capital city appreciation from January to August 2026 with a 10.24% increase, followed by Manaus (9.19%) and Aracaju (8.15%). In Goiânia, residential property prices rose 7.18% over the 12 months ending in August 2026, with the Setor Central neighborhood seeing a significant 43.9% jump, potentially influenced by the ‘Morar no Centro’ program.

On the production side, the INCC-10 construction cost index rose 0.50% in September 2026, bringing its 12-month accumulation to 6.63%. This increase was driven primarily by a 0.80% rise in labor costs.

In Brasília, high interest rates (Selic at 13.75%) and stricter lending conditions have created a slowdown in the housing sector. Research indicates that many potential buyers are reducing their investment ceilings, leading some developers to offer incentives such as covering registration costs or providing vehicles to stimulate sales.