Brazil Builders Mixed Q1: Cyrela Down 48%, Mitre Up 195%

The affordable housing builders posted record quarters. The mid- and high-income builders posted the opposite. The difference is one program and one interest rate.

Brazil builders Q1 2026 operational previews from Cyrela, Mitre, and Even landed this week, completing a picture that now covers both ends of the residential market. The Rio Times, the Latin American financial news outlet, reports that while affordable housing builders posted combined sales above R$8 billion on the back of subsidized MCMV credit, the mid- and high-income segment is showing clear signs of stress under a 14.75% Selic rate.

Cyrela: Sales Hold, Launches Collapse

Cyrela (CYRE3), Brazil’s largest listed builder by market capitalization, launched 12 projects totaling R$1.75 billion (~$337 million) in VGV during Q1—a 48% decline from the same period in 2025. The high-end segment was hardest hit, with launches plunging 71% to just R$602 million (~$116 million). Mid-range projects under the Living brand fell 19% to R$455 million (~$88 million), while the affordable Vivaz line declined a more modest 9% to R$690 million (~$133 million).

Net sales told a different story: R$2.16 billion (~$416 million), up 2% year-on-year, driven primarily by units already under construction rather than new launches. The 12-month VSO (velocity of sales over supply) closed at 45.8%, down from 52.6% a year ago but stable versus Q4. Distratos fell 36% to R$43 million (~$8.3 million), suggesting that buyers who commit are sticking with their contracts even as borrowing costs rise.

Mitre Bets Big, Sells Fewer Units at Higher Prices

Mitre (MTRE3) delivered the quarter’s most aggressive launch number: R$917 million (~$176 million) in VGV, a 195.3% surge that reflects concentrated project timing rather than a structural shift. Unit sales fell 46.9% year-on-year, but the VGV of those sales was essentially flat (+1.3%), meaning the company is selling fewer apartments at significantly higher average tickets.

The stock fell on the release, suggesting the market read the volume-price divergence as a risk signal. The company competes directly with Cyrela and Even in São Paulo’s mid- and high-income segments, where mortgage rates are fully exposed to the Selic.

Even: Zero Launches, Quiet Resilience

Even (EVEN3) launched no projects in Q1 for the second consecutive year, posting R$252 million (~$48 million) in net sales entirely from existing inventory. The company’s choice to hold back on launches in a high-rate environment may prove prudent: distratos dropped 36% to R$43 million (~$8.3 million), implying better contract quality among current buyers.

The Brazil Builders Q1 2026 Split: MCMV vs Market-Rate

The contrast with the affordable segment is now impossible to ignore. MRV, Cury, Direcional, and Tenda all posted double-digit sales growth funded through FGTS-subsidized mortgages that operate independently of the Selic. Cyrela, Mitre, and Even sell to buyers who borrow at market rates—and those rates are currently the highest since 2006.

The Copom’s next decision on April 28–29 will determine whether the easing cycle that began with March’s 25bp cut accelerates or stalls. For Cyrela, a builder that saw high-end launches collapse 71%, the Selic trajectory is the difference between recovery and prolonged contraction in its highest-margin segment. The Focus survey’s year-end Selic consensus of 12.25% implies relief by December, but the mid-income builders need it sooner than that.

Related Coverage: Brazil Housing Builders Post Record Q1 Despite 15% Selic • Cury (CURY3) Profit Surges 63% in Q4 • Brazil Inflation 2026 Guide

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