Due to the increase in construction costs, the real estate industry started canceling projects in the Casa Verde Amarela program.
This Monday (09/13), the Board of Trustees of the Severance Indemnity Fund (FGTS) unanimously approved the increase in property ceiling of Casa Verde and Amarela (new name of the Minha Casa Minha Vida Program). The change in the value of the ceiling was a consequence of the rise in the price of construction materials, as well as the rise in civil construction inflation.
The last time the board approved such a significant change was in February 2017. Over the next few years, the adjustments were punctual. However, cities with less than 20 thousand inhabitants will not be readjusted. The change in percentage will only be changed in the following proportions for the cases presented below:
- 10% for projects within capitals and metropolitan regions;
- 15% for cities with 50,000 to 100,000 inhabitants; and
- 10% for cities with a population between 20 thousand and 50 thousand inhabitants.
The council approved a general increase in the maximum values of houses and apartments marketed under the housing program. The decision to change the percentage of the ceiling of the Casa Verde Amarela program is a response to the demand of the real estate industry.
Due to the increase in construction costs, the real estate industry started to cancel projects from the program, as the margins did not compete with the inflation rate.
According to data from the National Construction Cost Index (INCC), the percentage of the price of materials, services and labor in civil construction in Brazil, accumulated over the last 12 months, hit record 17.3%.