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Check out the cheapest states to build a house in Brazil in 2024. The cheapest state to build a house is located in the Northeast and will surprise you!
The dream of owning a home is a reality aspired to by many Brazilians, but the path to achieving it is not always easy. Building a home in Brazil involves facing several challenges, such as the high cost of construction materials, the price of qualified labor, and even the impact of location on the final value of the project. In addition, inflation and the rise in the prices of essential inputs, 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 home in Brazil in 2024 can make all the difference for those who want to make this dream come true without compromising their budget too much.
Let’s explore where building is most affordable, taking into account factors like regional costs and local incentives.
How much does it cost to build a house in Brazil?
Experts used a 100 m² lot as a basis for building a house in Brazil, with only one floor, 1 bedrooms and 3 bathrooms, with a built-in roof and no garage. To start with, the cheapest states to build a house in Brazil are Rio de Janeiro, where a similar model costs around R$3, with R$302 for materials and R$186 for labor alone.
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Now at State of São Paulo, this value is a little lower, being an average of R$ 278 thousand, of which R$ 170 thousand is just for materials and R$ 108 thousand for labor. One of the most expensive states to build a house in Brazil is Rondônia. To give you an idea, this same property, if built in the state of Rondônia, would cost a total of R$ 312 thousand, of which R$ 220 thousand is for materials and R$ 92 thousand for labor.
Despite having a relatively cheap labor force, if we compare it with states like São Paulo and Rio de Janeiro, the state is one of the most expensive due to the fact that its materials are above the Brazilian average. In fact, 71% of the construction costs would be spent on materials alone.
Which are the cheapest states to build a house in Brazil?
First on the list of cheapest states to build a house in Brazil is the state of Sergipe, where a house costs on average R$253 thousand, of which R$173 thousand is for materials and only R$79 thousand for labor, making it the cheapest in Brazil.
Next on the list of cheapest states to build a house in Brazil is the state of Minas Gerais, where the total cost to build a house of this size is around R$264.900. Of this total cost, R$180 is for construction materials and R$84 is for labor. This is due to the fact that social security taxes in the state are 109%.
Another northeastern state is in the ranking of the cheapest states to build a house in Brazil, and this 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. There are several factors in a finished property that add value to the property, among which the incorporation activity stands out, that is, the work done by the construction company.construction and resolution of bureaucracies and the risks of the project have also been mitigated, as it is ready and standing, it is not just a project on paper.
When building a property, you must take on all the risks inherent to the work and you will also have to do a lot of work in terms of planning and supervision, and it is this work and this risk that are responsible for a large part of the construction economy.
