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Report
Brazil Commercial Real Estate - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029
Market Report I 2024-02-17 I 150 Pages I Mordor Intelligence
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).
Large companies investing in real estate are one of the major factors boosting the industry's growth. The emerging growth of the hospitality sector is another aspect propelling market performance. Commercial, residential, and rural land real estate transactions are all popular investment options in Brazil. The market has attracted many investors seeking tailored transactions for large multinational clients.
Key Highlights
-The COVID-19 pandemic hurt the Brazilian commercial real estate market performance. However, real estate agents, contractors, and builders have been trying to reduce or waive off taxes charged on documentation and registrations while selling or buying a property, which might help get the industry's performance back on track. Governments and private organizations are actively developing new projects to provide lucrative opportunities to companies in the industry.
-Technological developments in the Brazilian commercial real estate market have played a vital part in the development of the industry so far. The rising number of innovations and adoption of new technologies such as 3D imaging, virtual reality, networking platforms, cloud-based mobile applications, smart sensor technology, big data analytics, and cloud technology in the field are boosting the growth of the commercial real estate industry.
Brazil Commercial Real Estate Market Trends
Strong Demand in the Industrial Sector
- Brazil's standing in the world In the final quarter of the year (Q4 2022), the logistics market had favorable results thanks to the addition of 622,501 sq.m. of new inventory. Deliveries were made mainly in Minas Gerais and Sao Paulo (346,284 square meters) in the Southeast area. Total deliveries were 3.36 percent greater than the previous quarter.
- The country's net absorption of 351,050 square meters was again focused in the Southeast, with Minas Gerais accounting for 58.33% of the total, with a focus on the markets of Extrema and Betim, which had respective absorptions of 105,790 square meters and 100,368 square meters.5%.
- Following many reductions, the country's vacancy rate increased by 1.08 percentage points from the previous quarter to 10.85% in Q4 2022. The Southeast area had the greatest closing percentage (12.01%), followed by the South (10.01% vacancy). The highest value in the historical series, BRL 23.15 sq.m/month, represented the average asking price. The asking price increased across all regions, but the Southeast region saw the biggest swing, ending at BRL 23.43 sq.m/month.
Brazil's Office Market is Showing Signs of Revival
- The Brazilian economy's recovery was stronger than anticipated, and the indications were higher than those of the first quarter of 2022. Despite a decline in the number of transactions and the ongoing vacancy of some spaces, the Class A office market in this market has continued to perform well throughout the first semester. Compared to 35.45% in the first quarter of 2022, the availability rate is still high but consistent at 35.37%. Even if it was modest, in most areas of this significant metropolis, the activity of new occupations outpaced that of unemployment.
- The majority of the productive sectors performed well, and in May 2022, activity levels rose in the industrial sector by 1.2%, the commerce sector by 0.6%, and the services sector by 0.3%. In contrast to the declines at the beginning of the year, new incentives aimed at household consumption and improvements in the agriculture and mining sectors supported the expectation of GDP growth in the second quarter of 2022. As a result, there were fewer transactions and lower gross and net absorption levels in the second quarter of 2022.
Even with some vacancies filling, the occupied area rose by 16,000 m2. In comparison to last year, when a total of 46 thousand m2 was reported, net absorption has increased. The service industry, particularly the subsectors of finance and insurance, technology, and health, shone out in terms of new leases over the last quarter. The availability rate decreased from 23.84% to 23.77%, remaining constant.
Brazil Commercial Real Estate Industry Overview
The Brazil Commercial Real Estate Market is fragmented with many local and regional players. Significant players in Brazil's commercial real estate market are Multiplan Empreendimentos Imobiliarios 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 launches of construction companies in the country. Furthermore, the market is primarily driven by rising new construction activity.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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 Market Concentration
7.2 Company Profiles - Developers
7.2.1 Cyrela Commercial Properties SA
7.2.2 LOG Commercial Properties
7.2.3 Local Imoveis
7.2.4 Bauer Imoveis
7.2.5 Multiplan
7.2.6 MRV
7.2.7 Construtora Tenda SA
7.2.8 Even Construtora
7.2.9 Helbor Empreendimentos
7.2.10 Tegra Incorporadora*
7.3 Company Profiles - Real Estate Agencies
7.3.1 Madrona Advogados
7.3.2 TRK Real Estate
7.3.3 CBRE Brazil
7.3.4 VivaReal
7.3.5 Intelligent Real Estate Solutions*
7.4 Company Profiles - Other Companies (Startups, Associations, etc.)
7.4.1 Bemdireto
7.4.2 Agente Imovel
7.4.3 Loft
7.4.4 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
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