Brazil Commercial Real Estate Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 63.67 Billion |
| Market Size (2029) | USD 96.62 Billion |
| CAGR (2024 - 2029) | 8.70 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Brazil Commercial Real Estate Market Analysis
The Brazil Commercial Real Estate Market size in terms of transaction value is expected to grow from USD 63.67 billion in 2024 to USD 96.62 billion by 2029, at a CAGR of 8.70% during the forecast period (2024-2029).
Brazil has a coastline of 7,491 km, and the Atlantic Ocean borders to the east. It covers 47.3% of the continent's land area and perimeters and all other South American countries except Ecuador and Chile.
The commercial landscape development depends on government policies, such as regulations, taxes, and local planning initiatives. Brazilian real estate developments are regulated by Law 4,591/64. The Securities Commission's Normative Ruling no. 602/18 must also be observed to develop and sell hotel units with the hotel and lease administrations.
In the area of government policy, Brazil has a history of fluctuating policies that impact real estate markets. Tax changes, housing subsidies, and infrastructure investments are expected in 2024. Specific policies could include adjustments to the "Minha Casa Minha Vida" program, which provides affordable housing to low-income Brazilians, or reforms in property tax laws. Depending on their nature, these changes are either stimulating or depressing the property market.
Positive trends include increased foreign investment, growth of the upper classes, and infrastructure development for transport and cities. This improvement can stimulate demand in the real estate market, increasing property value.
Brazil Commercial Real Estate Market Trends
There is a Strong Demand In The Industrial Industry
In the first quarter of 2023, Brazil's average asking rent for industrial and logistics real estate was approximately BRL 23 (USD 4.6) per square meter. However, this figure varies from market to market. The second most expensive market was So Paulo, which had the highest inventory, with a monthly rent of BRL 24.4 (USD 5) per square meter. Rents in So Paulo amounted to as much as 38 Brazilian real for every square meter.
In addition, in the first quarter of 2023, less than 11 % of Brazil's industrial and logistics real estate was vacant, but this share varied widely across the different markets. The vacancy rate was about 10.9% in So Paulo, the country's most populated market, and less than 1% in Pernambuco.
The indicator 'Real Estate Transaction Value' in the real estate market in Brazil is projected to continuously increase between 2023 and 2028 by a total of USD 9.9 billion (+21.35%), according to industry experts. The indicator is expected to reach USD 56.32 billion in 2028, following the 11th consecutive year of growth, thus setting a new record. In particular, in the last few years, there has been a steady increase in the real estate transaction value indicator on the property market.
Brazil's Office Market is Showing Signs of Revival
In 2023, Brazil's economy did not slide into recession. In the third quarter, owing to relatively strong consumer spending and exports that offset weak investment, real GDP grew by a slight 0.1% compared with the previous quarter. Subsequently, at the beginning of 2023, the Class A central business district (CBD) office market in São Paulo recorded positive net absorption with 9,798-meter square absorbed, as per experts. On the other hand, the vacancy rate increased slightly following the delivery of a new inventory of 20,345 square meters in Chucri Zaidan and ending January at 21.04%.
Itaim is one of the most expensive São Paulo districts for Class A office space. In 2023, the average asking rent per square meter for Class A offices in Itaim was BRL 282 (USD 57), almost three times the average in São Paulo. Some districts with high average asking rents include Faria Lima and JK. In Faria Lima, Class A office rentals cost more than BRL 200 (USD 40) per square meter, while in JK, the average rental cost was over BRL 200 (USD 40).
However, Santo Amaro had the cheapest office space, with an asking rent of over BRL 32 (USD 6.5) per square meter), the lowest of all districts. Other affordable districts included Berrini, Marginal Pinheiros, and Chacara Santo Antonio, all of which cost less than BRL 100 (USD 20) per square meter.
Brazil Commercial Real Estate Industry Overview
The Brazilian commercial real estate market is fragmented, with many local and regional players. Significant players in Brazil's commercial real estate market are Multiplan Empreendimentos Imobiliários SA, Cyrela Commercial Properties SA, and Log Commercial Properties. The commercial property market will despair as further political instability dampens investor sentiment and occupier appetite. The capital markets in Brazil are expected to generate opportunities for local and international players. There is an increase in the pace of construction company launches in the country. Also, the market is primarily driven by rising new construction activity.
Brazil Commercial Real Estate Market Leaders
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Multiplan Empreendimentos Imobiliários SA
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Cyrela Commercial Properties SA
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Local Imóveis
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Log Commercial Properties
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Bauer Imóveis
*Disclaimer: Major Players sorted in no particular order
Brazil Commercial Real Estate Market News
- June 2023: NH Hotel, a part of the Minor Hotels, opened a hotel in Brazil, NH Feira de Santana. The 210-key hotel is located in a 31-story mixed-use Charmant building, where retail shops, medical establishments, and other facilities are also situated. The hotel offers meeting and conference facilities, laundry services, a gym, a car park, dedicated children's rooms, and wellness equipment, such as an indoor pool on the top floor.
- June 2023: It was announced that the Viana region, in Espírito Santo state, is about to welcome a new industrial property. With a BRL 170 million (USD 34.58 million) investment, the construction of this warehouse complex began in June 2023 and was scheduled to be inaugurated in December 2023. Raizz Capital is developing the project and will have a total gross leasable area of 80,000 square meters upon completion. The construction of this new complex will be divided into three phases. The ongoing first phase will offer 40,000 square meters of leasable area. The subsequent phases, expected in 2024, will add 30,000 and 10,000 square meters, respectively.
Brazil Commercial Real Estate Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Economic Scenario and Consumer Sentiment
4.2 Commercial Real Estate Buying Trends - Socioeconomic and Demographic Insights
4.3 Government Initiatives and Regulatory Aspects for the Commercial Real Estate Sector
4.4 Insights into Existing and Upcoming Projects
4.5 Insights into Interest Rate Regime for General Economy and Real Estate Lending
4.6 Insights into Rental Yields in the Commercial Real Estate Segment
4.7 Insights into Capital Market Penetration and REIT Presence in Commercial Real Estate
4.8 Insights into Public-Private Partnerships in Commercial Real Estate
4.9 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Drivers
5.1.1 Increasing Demand for Logistics Real Estate
5.2 Restraints
5.2.1 Rise of e-Commerce Affecting the Physical Store Space Demand
5.3 Opportunities
5.3.1 Strong Business Activity in Sau Paulo
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers/Buyers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Offices
6.1.2 Retail
6.1.3 Industrial and Logistics
6.1.4 Multi-family
6.1.5 Hospitality
6.2 By Key Cities
6.2.1 Rio de Janeiro
6.2.2 Sao Paulo
6.2.3 Rest Of Brazil
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Market Concentration
7.1.1.1 Cyrela Commercial Properties SA
7.1.1.2 LOG Commercial Properties
7.1.1.3 Local Imoveis
7.1.1.4 Bauer Imoveis
7.1.1.5 Multiplan
7.1.1.6 MRV
7.1.1.7 Construtora Tenda SA
7.1.1.8 Even Construtora
7.1.1.9 Helbor Empreendimentos
7.1.1.10 Tegra Incorporadora
- *List Not Exhaustive
7.2 Company Profiles - Real Estate Agencies
7.2.1 Madrona Advogados
7.2.2 TRK Real Estate
7.2.3 CBRE Brazil
7.2.4 VivaReal
7.2.5 Intelligent Real Estate Solutions
7.3 Company Profiles - Other Companies (Startups, Associations, etc.)
7.3.1 Bemdireto
7.3.2 Agente Imovel
7.3.3 Loft
7.3.4 Linq Brasil
8. FUTURE OF THE MARKET
9. APPENDIX
9.1 Macroeconomic Indicators (GDP Breakdown by Sector)
9.2 Key Production, Consumption, and Export and Import Statistics
Brazil Commercial Real Estate Industry Segmentation
Commercial real estate, investment property, or income property plans to profit from capital gains or rental income. A complete background analysis of the Brazilian commercial real estate market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.
The Brazilian commercial real estate market is segmented by type (offices, retail, industrial and logistics, multi-family, and hospitality) and key cities (Rio de Janeiro, Sao Paulo, and the Rest of Brazil). The report offers market size and forecasts for all the above segments in value (USD).
| By Type | |
| Offices | |
| Retail | |
| Industrial and Logistics | |
| Multi-family | |
| Hospitality |
| By Key Cities | |
| Rio de Janeiro | |
| Sao Paulo | |
| Rest Of Brazil |
Brazil Commercial Real Estate Market Research FAQs
How big is the Brazil Commercial Real Estate Market?
The Brazil Commercial Real Estate Market size is expected to reach USD 63.67 billion in 2024 and grow at a CAGR of 8.70% to reach USD 96.62 billion by 2029.
What is the current Brazil Commercial Real Estate Market size?
In 2024, the Brazil Commercial Real Estate Market size is expected to reach USD 63.67 billion.
Who are the key players in Brazil Commercial Real Estate Market?
Multiplan Empreendimentos Imobiliários SA, Cyrela Commercial Properties SA, Local Imóveis, Log Commercial Properties and Bauer Imóveis are the major companies operating in the Brazil Commercial Real Estate Market.
What years does this Brazil Commercial Real Estate Market cover, and what was the market size in 2023?
In 2023, the Brazil Commercial Real Estate Market size was estimated at USD 58.13 billion. The report covers the Brazil Commercial Real Estate Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Brazil Commercial Real Estate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Brazil Commercial Real Estate Industry Report
Statistics for the 2024 Brazil Commercial Real Estate market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Brazil Commercial Real Estate analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
