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Homeownership in Brazil: The Real Cost of Building from Scratch
Building your own home is one of the biggest dreams of Brazilians — but also one of the largest financial doubts of adult life. With rising prices of materials and labor in recent years, many people wonder: how much does it actually cost to build a house from scratch today in Brazil?
A survey based on a real project, already completed, helps answer this question and brings numbers that surprise those considering leaving rental housing.
How the House Is Built
The analyzed project is for a single-story house with 60 square meters, built on a lot that is practically half an allotment. The property includes:
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Removing the bark of a tree without cutting it down every 9 years, cork insulates thermally as well as fiberglass, absorbs vibrations, and resists water, and the material the world knows only as a wine stopper is being used in construction to create facades, acoustic floors, and building coverings that require zero maintenance for decades.
- Two bedrooms
- A shared bathroom
- Integrated living room, dining room, and kitchen
- Service area
- Winter garden
- Garage with space for up to two cars
- Outdoor area with grass and simple landscaping
The finishing is considered average to good, with porcelain tile flooring and well-distributed spaces, maximizing the available area.
How Much It Would Cost According to the CUB for Civil Construction
To estimate the cost of a construction project, one of the most utilized indicators in Brazil is the CUB (Basic Unit Cost), released monthly by the civil construction unions of each state.
At the start of this project, in September 2023, the CUB for the popular standard in the state of Minas Gerais was approximately:
- R$ 2,692.20 per square meter
By multiplying this amount by the constructed area (60 m²), the estimated cost of the project would be:
- R$ 161,069.20
This amount is often used as an initial reference by those planning to build and lacking experience in construction budgeting.
How Much Was Actually Spent to Build the House
At the end of construction, the real cost of the project was:
- R$ 156,570
In other words, less than the amount estimated by the CUB, even with a finishing considered good.
The most curious part is that this amount included items that normally do not count in the CUB calculation, such as:
- Wall
- Concertina
- Grass
- Project administration fee
- Other supplemental costs
Even so, the final budget remained below the initial estimate.
Why the Cost Was Below the Estimated
Several factors helped keep construction costs under control:
- Flat terrain, with no need for major earthmoving
- Simple and well-optimized project, avoiding waste
- Only one bathroom, which significantly reduces plumbing costs
- Prior planning of expenses
- Using CUB as a reference tool, avoiding budget surprises
These points show that, with planning and smart choices, it is possible to build without overspending.
How Much of the Project Value Goes to Each Stage of Construction
For those planning to build, understanding how money is distributed throughout the project is as important as knowing the final cost. In general, the cost of a house tends to be divided among different categories, which vary according to the standard of the property, the region, and the type of finishing.
In a residential construction of a simple to medium standard, like the one analyzed, the average expenses tend to be distributed as follows:
- Structure and foundation: about 15% to 20% of the total cost
- Masonry and sealing: approximately 15%
- Roofing: around 8% to 12%
- Electrical and plumbing installations: between 10% and 15%
- Finishes (floors, painting, fixtures): about 25% to 30%
- Labor: can represent 40% to 50% of the project value
- Additional costs (walls, landscaping, fees, administration): variable, usually outside the CUB
These figures help explain why finishes and labor are often the biggest contributors to the budget and reinforce the importance of planning before starting construction.
What Is the CUB and Why Is It So Important
The CUB (Basic Unit Cost) is an index that indicates the average cost per square meter of civil construction in each state. It serves as an initial estimate for those wishing to build, helping evaluate the feasibility of the project even before starting construction.
Although it does not include all possible expenses, the CUB is considered a quite reliable tool, especially for popular and medium-standard constructions.
Is It Worth Building Your Own Home Today?
The numbers show that, despite rising costs in recent years, building your own home can still be viable, as long as there is planning, financial control, and the use of references like the CUB.
For those dreaming of leaving rental housing or investing in a property, understanding the real costs of a project is the first step towards making safer decisions and avoiding unpleasant surprises along the way.
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