Luiz França, president of Brazilian developers’ association Abrainc, said lower interest rates could bring more families into the housing market. He estimated that a one-percentage-point rate cut could make housing market access possible for 1.3 million additional families.
França spoke at the ninth Incorpora Abrainc forum, held in São Paulo on October 7 to discuss the sector’s outlook for 2027. Topics included housing finance, interest rates, the FGTS, tax reform and the housing shortage.
He also described a shift in the sector’s funding mix. LCI and LIG instruments account for 56% of funding, while savings provide 44%, he said. França called for using resources from Brazil’s pre-salt Social Fund to expand housing finance. He said the fund could reach 50 billion reais over the next four years.
Abrainc wants to establish a permanent housing-finance mechanism and reduce dependence on the FGTS. Rubens Menin, chair of MRV’s board and an emeritus adviser to Abrainc, also spoke at the opening. He said Brazil needs deep fiscal adjustment. São Paulo Governor Tarcísio de Freitas and Finance Minister Dario Durigan attended the event.