Construction Industry in Brazil and How It’s Evolved Over Time

Brazilian economy is growing at a rapid pace. The country is the part of ‘BRICS’ which represent Russia, China, India and South Africa apart from them and are considered the fuel for world economic growth in the near future. Also, it is the fifth largest country in the world with respect to area and is home for more than 200 million people. When such a large economy grows rapidly and the country undertakes the journey from a developing to a developed nation, one of the industries that really benefits in real estate and civil construction.

The civil construction industry alone amounts to BRL 350 billion. The high demand is fueled by the government housing program as well the increasingly increasing middle class population. More than 36 million people are expected to enter the middle class in the coming years.

Because of the geography of the region, most of the construction work happens in the South Eastern part of the country where three huge cities are located. Among them, Sao Paulo, Belo Horizonte and Rio de Janeiro house 19 of the 20 largest construction companies in the country. It is not surprising that almost two thirds of the countries construction money is spent in this region alone.

The largest construction company in the country is Oderbrecht, headquartered in Rio. Other big construction companies include Camargo Correa, Andrade Gutierrez, Queiroz Galvao, OAS, MRV, Construcap and ARG.

Construcap is one of the largest construction companies in Sao Paulo. Most of its revenue comes from construction of residential building. The company also takes up construction projects for commercial buildings such as office spaces, schools, shopping malls and hospitals. All other urban construction projects are also taken up by the company. The list will include metro stations, stadiums, churches, cinemas etc.

Though the above mentioned construction projects earn the company most of its BRL 2 billion of revenue, the field of work for the company is much vaster. Construcap also undertakes projects for excavation, building roads and railways, dams and ports.

Demolition work, installation of billboard, maintenance, water proofing, finishing and painting of buildings also add up to the revenues of the company.