It is known that the values and prices of products are constantly changing according to the decrease or increase in economic rates. The fluctuations in these actions impact the development of the market and the number of sales.
Therefore, knowing the concepts and how their purposes free email lists uk important for large economic bases such as the construction sector is essential. Mainly to be able to maintain the financial health of your construction company.
With this in mind, in this article I will address one of the most important indicators for the real estate market: the INCC.
Summary
What is INCC: How did this index come about?
What is the function of INCC?
What is the impact of INCC on the real estate market?
INCC and property values
Values of Off-Plan Properties
Practical calculation of INCC: Real estate installments
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What is INCC: How did this index come about?
What is INCC: image of a magnifying glass on top of a paper with several graphs
The National Construction Cost Index , or simply INCC , is one of the most important economic indicators in Brazil . It is monitored and calculated by the Brazilian Institute of Economics (IBRE), which belongs to the Getúlio Vargas Foundation (FGV).
To understand the development of this indicator, it is necessary to go through part of the country's history . It was in the 1940s that the Construction Cost Index (ICC) began to analyze the variations in the values of essential materials to carry out a project .
The ICC was exclusively measured in the Federal Capital at that time, Rio de Janeiro. However, with economic decentralization and the expansion of activities, it was necessary to reformulate the indicator , so that it included the national territory .
Before implementing the indicator reform , IBRE was responsible for analyzing data from 20 Brazilian capitals . A few years later, in 1985 , the INCC was created , which monitors variations in rates and costs in the construction sector to this day.
What is the function of INCC?
In addition to knowing what INCC is , it is necessary to understand what it is for . The main function of this indicator is to measure cost variations around the basic elements of civil construction .
In other words, the INCC is used to compile the amounts paid by construction companies for raw materials , essential materials, equipment and labor. These costs are analyzed monthly and adjusted according to price variations .
Rising prices have a direct impact on the project 's budget , so it is necessary to redistribute spending so that expenses do not become a problem for the construction company or the end consumer . Thus, the function of the INCC is to enable a calculation that helps with the division of values .
The launch of off-plan properties is developed through this rate , as the construction company will base itself on this indicator to price the properties and maintain the profitability of the project. This means that buyers will be essential for the costing and completion of the works .