Recent projections by the São Paulo Construction Industry Syndicate (SindusCon-SP) have indicated that sector productivity is expected to close 2012 with growth of 4% which will slow to between 3.5% and 4% in 2013 – a noticeable deceleration in compared to 2011 (where 4.8% expansion was witnessed).
Complemented by studies undertaken by the Getúlio Vargas Foundation (FGV), whilst there is some expectation of relative buoyancy, such reasoning is justified via the the expected slowdown of investments in the public sector; the slow pace in progress of the Minha Casa, Minha Vida (“My House, My Life”) in addition to a number of delays in core infrastructure projects which would indirectly support the growth of the real estate sector.
The issue of labour contraction was viewed as the most common concern for constructors moving forward. In October, employment levels fell by 0.22% in October as a result of developers having to dismiss 7,600 workers across the country (FGV and SindusCon data). Ana Maria Castelo, economist at the FGV pointed to the fact that, with the number of launch levels reducing, the demand for roles such as architects and engineers has also dropped.