Comparison between the impact of the brazilian real estate crisis and the critical period of Covid 19 on the financial economic indicators of companies

Abstract

Until 2013, the real estate sector experienced an excellent moment due to favorable economic conditions and the high housing deficit in the country, and it can be said that the real estate market went through a period of “euphoria”. But as of 2014, this growth in the sector was interrupted by a strong crisis due to the oversupply of real estate units, and the lack of bank credit from customers for the acquisition of real estate. This period of decline lasted, on average, until 2018, when companies in the sector resumed growth, but shortly thereafter, in early 2020, the Covid19 pandemic brought new challenges for companies, providing negative as well as positive impacts. This work aimed to study the economic and financial indicators of some important developers (Cyrela, Even, EZTEC, MRV and Direcional) in the national market, listed in the IMOB sectorial index of the Stock Exchange, to measure the evolution of these indicators during the period of 2013 to 2021, a period in which the construction sector experienced two crises of global proportions. As shown in the results, the main financial economic indicators (liquidity, indebtedness, profitability, and turnover or activity) had a behavior with only negative impacts in the 2014 real estate crisis. but in the Covid crisis these impacts were predominantly positive