Brazil’s New Housing Policy to Inject R$150 Billion into Real Estate by 2027
Brazil’s government unveils a new housing policy targeting middle-class families, unlocking up to R$150 billion from SBPE for real estate financing by 2027.
- • Policy to finance 80,000 new homes by 2026 focused on middle-class families earning R$12,000 to R$20,000 monthly.
- • New regulations allow banks to use SBPE funds flexibly with obligations to fund real estate credit.
- • Initial injection of R$35 billion expected, potentially rising to R$150 billion by 2027.
- • Maximum financed property value increased from R$1.5 million to R$2.2 million under SFH.
Key details
The Brazilian federal government has introduced a new housing policy aimed at financing 80,000 middle-class homes by 2026 and injecting as much as R$150 billion into the real estate market by 2027. Announced during the Incorpora 2025 event by Minister of Cities Jader Filho, this policy focuses on families earning between R$12,000 and R$20,000 monthly, a segment traditionally underserved by housing finance programs.
Central to the policy is the release of funds from the Sistema Brasileiro de Poupança e Empréstimo (SBPE), which currently holds approximately R$750 billion. The SBPE’s existing regulation mandates 65% of resources from savings banks be directed to real estate credit, while 15% can be used for more profitable operations, and 20% remains as compulsory reserves held by the Central Bank. Under the new framework, banks will have increased flexibility to utilize these funds for profitable operations, provided they match these with an equivalent amount of real estate credit.
Initially, 5% of the compulsory reserves will be freed, with a plan to release the full 20% by 2027, contingent on market stability. Early phases expect an injection of at least R$35 billion, with Caixa Econômica Federal ready to contribute a minimum of R$20 billion immediately, potentially raising the total support to R$150 billion when fully implemented. Additionally, 80% of these funds must be channeled into the Housing Finance System (SFH) with a ceiling interest rate of 12% per annum, while the remaining 20% can flow into the Real Estate Finance System (SFI) at market rates.
The policy also raises the maximum property financing limit under SFH from R$1.5 million to roughly R$2.2 million, with banks given a flexible usage period of five to seven years to deploy these resources. Minister Jader Filho underscored the importance of addressing the financing needs of middle-class families and highlighted forthcoming cooperation with President Lula to further solidify the initiative.
This coordinated effort involving the Ministry of Finance, the Central Bank, and Caixa Econômica Federal signals a strategic push to invigorate Brazil's real estate sector by unlocking significant liquidity and expanding housing opportunities for the middle class.