By Brazil Stock Guide – Brazilian homebuilder Cury Construtora (CURY3.SA) is benefiting from a wave of policy measures designed to stimulate the country’s vast low-income housing market — a cornerstone of Brazil’s social agenda and one of the most important drivers of real estate demand nationwide.
The government’s proposed income tax exemption for families earning up to R$5,000 (about $900) per month, combined with new adjustments to the Minha Casa, Minha Vida (My House, My Life) program, is expected to lift affordability and sustain industry margins. For Cury, these measures come as the company celebrates record earnings and 26 straight quarters of positive cash generation.
Policy Tailwinds in a Critical Market
The Minha Casa, Minha Vida program offers subsidized mortgages and cash grants to lower-income households — a segment that still represents a massive housing deficit in Brazil’s largest cities. Cury is among the main private-sector beneficiaries, given its focus on compact apartments priced below R$500,000 (roughly $90,000), which account for about 15% to 20% of its sales.
ICury highlighted that the latest adjustments — including higher subsidies and an expanded income ceiling for eligibility — “keep the train on the tracks,” helping maintain margins while expanding demand. Cury added that the proposed income tax exemption for low earners could push informal workers into the formal economy, allowing them to qualify for government-backed mortgages.
With the FGTS housing fund — the main public financing source for home loans — receiving a record R$160 billion allocation for 2026, executives believe the policy mix should keep Brazil’s housing market buoyant through next year.
Margins, Discipline, and Operational Leverage
While macro tailwinds are strong, Cury’s success rests on its ability to sustain high profitability in a cost-sensitive sector. The company reported R$1.4 billion in revenue and R$283 million in net profit in the third quarter, maintaining a 70% return on equity and a 40% gross margin, one of the highest in the Brazilian real estate sector. CFO João Mazzucco said efficiency gains and operating leverage have been key, with administrative expenses falling to 4.5–5% of revenue.
Commercial Vice President Leonardo Mesquita added that pricing decisions remain highly localized. “Cury doesn’t rely on broad inflation adjustments; we raise prices project by project, based on demand and neighborhood dynamics,” he said.
Extraordinary Dividend Before New Tax Rules
With net cash of R$450 million and R$233 million in cash flow during the quarter, Cury plans to declare an extraordinary dividend in 2025, before Brazil’s new tax on dividends takes effect. Like other Brazilian companies, Cury is waiting for final clarity on the new law’s implementation but intends to maintain its long-standing policy of returning excess capital to shareholders. “We’ll distribute what we don’t need — that’s been our philosophy for years,” said Mazzucco.
Selective Growth, Urban Anchors in São Paulo and Rio
Despite consistent double-digit growth, the company is now emphasizing quality over scale. Its land bank — the portfolio of future development sites — totals R$23.3 billion in potential sales value, concentrated in São Paulo and Rio de Janeiro, Brazil’s two largest metropolitan areas. Cury plans to extend its successful Porto Maravilha projects in Rio into the São Cristóvão district, an area undergoing rapid regeneration, while maintaining São Paulo as its core growth engine.
“São Paulo has become Brazil’s main social housing hub because it combines infrastructure, mobility, and urban density,” said Mesquita, noting that projects like Alto Chácara Santo Antônio, launched in October with 60% of units sold within weeks, demonstrate strong demand in well-located neighborhoods.
Outlook for 2026
Cury ends the year with low inventory and a robust pipeline. The company expects a “more balanced” 2026, avoiding the traditional front-loaded cycle of launches early in the year. “We’re in a maturity phase now — our growth will continue to be selective and disciplined,” said Mesquita.
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