Brazil Commercial Real Estate Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| 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).
In 2024, Brazil's commercial real estate market is witnessing steady growth, buoyed by rising investments in logistics and industrial spaces. The market is set to expand consistently, fueled by demand from sectors such as e-commerce and supply chain logistics. Industrial real estate, particularly in São Paulo, is in high demand, with key regions reporting vacancy rates below 11%. The logistics sector's absorption of new inventory underscores its pivotal role in bolstering Brazil's economic infrastructure .
Meanwhile, the office market is showing signs of recovery. Premium Class A spaces in areas like Faria Lima and Itaim are in high demand, even with a vacancy rate exceeding 20%. São Paulo's positive net absorption of office spaces points to a rebound in corporate activity, although challenges remain, such as elevated vacancies in specific regions. The hospitality and retail sectors are on the mend, thanks to a tourism resurgence and evolving consumer preferences towards hybrid retail models .
Technological innovations, including virtual reality and cloud-based applications, are transforming the industry, boosting efficiency and investor engagement. Regulatory initiatives aimed at reducing transaction costs are enhancing the market's appeal to foreign investors. Yet, challenges linger, stemming from previous economic disruptions, notably high vacancy rates in certain office segments. Nevertheless, public-private partnerships and infrastructure endeavors are addressing these hurdles, paving the way for sustainable growth.
Brazil Commercial Real Estate Market Trends
Brazil's Residential Real Estate Market Thrives Amid Rising Demand for Luxury Beachfront Properties
In 2024, Brazil's real estate market is witnessing significant growth in the luxury beachfront property segment, fueled by heightened interest from global investors. Affluent buyers hailing from Europe, North America, and the Middle East are increasingly eyeing upscale properties dotting Brazil's scenic coastlines, notably in regions like Rio de Janeiro, Bahia, and Ceará. This growing trend underscores Brazil's allure as a prime destination for both lifestyle and investment, especially with its luxury properties boasting contemporary designs, exclusive amenities, and eco-friendly features.
Among the various segments of Brazil's real estate landscape, the residential sector stands out, with projections estimating its market volume to hit USD 7.06 trillion in 2024. Such a valuation underscores the pivotal role of residential investments, especially in the luxury domain. The rising demand is further fueled by favorable exchange rates for foreign buyers, urbanization patterns, and a growing domestic appetite for premium properties. Enhancements in infrastructure, notably improved transportation links to coastal regions, have further amplified the allure of these beachfront assets.
In response to this burgeoning demand, developers are rolling out high-end projects that align with international standards, further propelling the sector's growth. The current trajectory of the market not only highlights its resilience but also cements its status as a coveted global hub for luxury real estate investments.
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.
The key players in the market Cyrela Commercial Properties SA, LOG Commercial Properties, Local Imoveis, Bauer Imoveis, Multiplan, MRV, Construtora Tenda SA, Even Construtora, Helbor Empreendimentos and Tegra Incorporadora
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
- October 2024: The Brazilian government is actively pursuing urban renewal initiatives, notably through programs such as "Minha Casa Minha Vida," with the objective of broadening access to affordable housing. Concurrently, infrastructure advancements and modifications in property taxation are cultivating a conducive environment for commercial real estate investments. As a result of these policies, pivotal sectors including hospitality, logistics, and office spaces are witnessing significant growth.
- October 2024: A significant highlight is the development of the NH Feira de Santana hotel and an industrial property in Espírito Santo. These projects reflect the growing interest in hospitality and industrial logistics within Brazil. Additionally, technological advancements like 3D imaging and virtual reality are enhancing operational efficiencies in real estate projects.
Brazil Commercial Real Estate Market 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 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 Impact of Geopolitics and Pandemic on the Market is covered in the report.
The Brazilian commercial real estate market is segmented by type (offices, retail, industrial and logistics, 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 | |
| Hospitality |
| By Key Cities | |
| Rio de Janeiro | |
| Sao Paulo | |
| Rest Of Brazil |
Brazil Commercial Real Estate Market 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 Market 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.
Brazil Commercial Real Estate Market Report Snapshots
