Construction inflation accelerates around the world in 2026, but Brazil is going against the trend. A study by Turner & Townsend with 112 cities in 44 countries projects a global increase of 4.5% in the sector's costs this year, while São Paulo and Rio are expected to register 2.7% — less than half of the 5.6% in 2025. The numbers redefine construction planning in the country.
Brazil slows down, world speeds up
The survey shows that construction inflation in the world goes from 4.2% in 2025 to 4.5% in 2026. In Brazil, the movement is reversed: São Paulo and Rio de Janeiro increased by 5.6% last year and are now expected to rise by 2.7%. The slowdown is expected to continue in São Paulo, with 2.5% predicted for 2027, while Rio returns to growth, to 3%.
South America follows the Brazilian trend: 5.9% in 2025, 3.7% in 2026 and 3.4% in 2027. Turner & Townsend's director of project management in the country, Kamila Lima, assesses that Brazil is well positioned to attract new investments as financing conditions and the macroeconomic scenario evolve favorably.
- World: 4.2% (2025) → 4.5% (2026) → 4.4% (2027)
- São Paulo: 5.6% (2025) → 2.7% (2026) → 2.5% (2027)
- Rio de Janeiro: 5.6% (2025) → 2.7% (2026) → 3.0% (2027)
- South America: 5.9% (2025) → 3.7% (2026) → 3.4% (2027)
Labor remains the main pressure
The study points out that 77.7% of the markets analyzed report a lack of workers for construction projects. Only 16% consider the supply to be balanced and less than 6% say there is an abundant supply. In Europe, 93% of participants report shortages; in North America, 70.6%. Latin America is the region with the most balanced situation: 60% say the relationship is balanced.
This shortage puts pressure on the cost of hours worked. New York leads with US$161.40 per hour, while São Paulo pays US$8.80 and Rio, US$8.50. Lagos, Nigeria, has the lowest price: US$1.20. For the Brazilian contractor, the local labor cost remains competitive, but technical qualification continues to be the sector's central challenge.
- New York: $161.40/hour
- São Paulo: US$8.80/hour
- Rio de Janeiro: US$8.50/hour
- Lagos (Nigeria): US$1.20/hour
Materials and demand: the two-speed market
Materials inflation was between 1% and 5% in most markets. Concrete and base materials remained stable, and steel fell in some regions. Inputs linked to high-growth sectors, such as technology, rose — a reflection of the transition from generalized inflation to specific demand pressures.
Data centers took the top spot in the demand ranking, overtaking housing and social housing, which fell to third position. The industrial and logistics sector rose to second place. Residential and commercial markets cooled, pressured by higher financing costs and cautious investment. This two-speed market requires careful reading of each segment before starting a project.
- New York: US$7,937
- San Francisco: $7,883
- Geneva: US$6,985
- London: US$6,032
- Rio de Janeiro: US$1,843 (84th)
- São Paulo: US$ 1,759 (86th)
In Latin America, the main challenges highlighted are excessive regulation, high costs, limited access to credit and delays in approvals. Even so, the study maintains a positive outlook for the region, with infrastructure and technology driving new projects and reinforcing Brazil's position as one of the main growth markets in Latin America.
How to take advantage of the cost scenario
For engineers and architects, the slowdown in construction inflation in Brazil makes room for more predictable budgets and more comfortable margins. Comparing costs by city, reviewing price compositions and planning material purchases in times of stability are practices that will gain relevance in 2026.
Budgeting and modeling tools help protect the project from variance. Check it out on CanalVIP catalog software options for planning and managing works and create your proposal with updated numbers.