If you are planning to invest, buy real estate, or move to Brazil, it is essential to understand certain economic indexes that directly influence prices and costs in the country. Among these, the INCC (National Construction Cost Index) and the IGP-M (General Market Price Index) play a crucial role, especially in the real estate sector.
What is the INCC?
The INCC measures the evolution of costs in the construction sector in Brazil. It is calculated by Fundação Getúlio Vargas (FGV) and divided into three versions:
- INCC-DI: General indicator covering the entire country.
- INCC-M: Covers the period from the 21st of the previous month to the 20th of the current month.
- INCC-10: Covers the period from the 11th of the previous month to the 10th of the current month.
These indexes are used to adjust real estate prices, construction materials, and related services.
Example of variation in 2025:
- INCC-DI: In July 2025, the monthly variation was 0.91%, with a 12-month cumulative variation of 7.41%.
- INCC-M: In August 2025, the monthly variation was 0.70%, with a 12-month cumulative variation of 7.49%.
- INCC-10: In August 2025, the monthly variation was 0.82%, with a 12-month cumulative variation of 7.46%.
These indexes are particularly important for real estate investors, as they directly influence construction project costs and property valuation.
What is the IGP-M?
The IGP-M is a composite index that measures price changes across the entire Brazilian economy. It is also calculated by FGV and consists of three sub-indexes:
- IPA (Producer Price Index): Represents 60% of IGP-M.
- IPC (Consumer Price Index): Represents 30% of IGP-M.
- INCC: Represents 10% of IGP-M.
The IGP-M is widely used to adjust rents, supply contracts, and other commercial agreements in Brazil.
Example of variation in 2025:
- August 2025: IGP-M increased by 0.36% in August, with a 12-month cumulative variation of 3.03%.
- July 2025: IGP-M decreased by 0.77%, with a 12-month cumulative variation of 2.96%.
IGP-M variations can significantly impact long-term contract costs, especially for expatriates and foreign investors.
Why are these indexes important for foreigners?
- Real estate investment: INCC and IGP-M fluctuations directly affect construction costs and rents, impacting investment returns.
- Long-term contracts: Expatriates and foreign companies must be aware of these indexes, as they can influence lease and supply costs.
- Financial planning: Understanding these indexes enables better financial planning and effective cost management in Brazil.
How to track these indexes?
Data on INCC and IGP-M are published monthly by FGV and can be accessed on their official website or through specialized platforms such as Remessa Online.
External sources:
If you have further questions or need more detailed information about these indexes, feel free to contact us. We’ll be happy to guide you.