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Check Out The Cheapest States To Build A House In Brazil In 2024. The Cheapest State To Build A Residence Is Located In The Northeast And Will Surprise You!
The dream of owning a home is a reality aspired by many Brazilians, but the path to achieving it is not always easy. Building a house in Brazil involves facing various challenges, such as high costs of construction materials, the price of skilled labor, and even the impact of location on the final cost of the project. In addition, inflation and the rise in prices of essential supplies, such as cement and steel, have made this process even more difficult in recent years. In this scenario, knowing the cheapest states to build a house in Brazil in 2024 can make all the difference for those who wish to realize this dream without compromising their budget.
Let’s explore the places where building is more affordable, considering factors such as regional costs and local incentives.
How Much Does It Cost To Build A House In Brazil?
Experts used as a basis for building a house in Brazil a plot of 100 m², with only 1 floor, consisting of 3 bedrooms and 3 bathrooms, with an embedded roof type and no garage. To start, in Rio de Janeiro, a similar model costs around R$ 302 thousand, where R$ 186 thousand is for materials and R$ 116 thousand is for labor.
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In the state of São Paulo, this value is slightly lower, averaging R$ 278 thousand, with R$ 170 thousand only for materials and R$ 108 thousand for labor. One of the most expensive states to build a house in Brazil is Rondônia. For reference, the same property, if built in the state of Rondônia, would cost a total of R$ 312 thousand, with R$ 220 thousand for materials and R$ 92 thousand for labor.
Despite having relatively cheap labor compared to states like São Paulo and Rio de Janeiro, the state is one of the most expensive due to its materials being above the Brazilian average. In fact, 71% of the construction costs would be directed solely towards materials.
What Are The Cheapest States To Build A House In Brazil?
First on the list of the cheapest states to build a house in Brazil is the state of Sergipe, where a house costs an average of R$ 253 thousand, of which R$ 173 thousand is allocated to materials and only R$ 79 thousand is for labor, making it the cheapest in Brazil.
Next on the list of the cheapest states to build a house in Brazil is the state of Minas Gerais, where the total value to build a residence of this size is around R$ 264,900. Out of this total, R$ 180 thousand is for construction materials and R$ 84 thousand is for labor. This is due to the fact that social law taxes in the state are 109%.
Another northeastern state ranks among the cheapest states to build a house in Brazil, and that is Bahia, where the same house costs R$ 269 thousand, with R$ 173 thousand for materials and R$ 96 thousand for labor.
Buy Or Build A House From Scratch?
In theory, building a property should be cheaper than buying the same property ready-made. There are several factors in a finished property that add value to the asset, among which the incorporation activity stands out, meaning the work of construction and resolution of bureaucracies and the risks of the venture have also been mitigated, as it is already complete and standing, not just a project on paper.
When building a property, it is necessary to take on all the inherent risks of the construction and also require significant work in terms of planning and supervision, and it is this work and risk that account for a large part of the savings in construction.
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