What is CUB? Understand the calculation of this index in relation to housing works, and how it increases the value of real estate financing
Estimated reading time: 3 minutes
The Basic Unit Cost of Civil Construction, the so-called CUB, is today the main indicator of the construction sector in the country. It is calculated monthly by the Civil Construction Industry Unions, and determines the overall cost of the work in order to comply with what is established in the law for the incorporation of residential buildings in condominiums.
In other words, it is this indicator that regulates the cost of housing construction, and can also directly impact the value of real estate financing. So, to find out more, check it out below.
What is CUB? Understand the calculation and how it increases the value of real estate financing
Thus, the CUB is nothing more than the calculation, on average, of how much it costs to build 1 square meter. In other words, it is the cost per square meter of a building. It is used to update and correct the values of properties in the plant still under construction. The idea is that the CUB can provide potential buyers with a benchmark against the reality of costs.
Who defines the value of the CUB is the union of the category. Generally, unions disclose the amount until the fifth working day of each month, and each state of the federation has its own result. This means that the CUB varies from state to state. Among the most expensive CUB values in Brazil, for example, are Rio de Janeiro, São Paulo and the Federal District. In 2022, Balneário Camboriú became the most expensive CUB in the country, surpassing Leblon.
Finally, in the case of CUB and real estate financing, the first point is that the value in reais stipulated in the purchase and sale agreement, when the CUB is corrected, will vary every month.
The state calculates these costs taking into account the input lots (materials and labor), administrative expenses and equipment, among other factors. So, although the CUB of the month of purchase of the property always serves as a reference, this value can change.
In addition, it is important to understand that, even with the increase in the CUB, there is consequently an appreciation of the entire work and the apartment itself. So, in other words, you won’t lose money. But the portion can indeed suffer a readjustment based on that.
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