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).
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.
- 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 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 launches of construction companies in the country. Furthermore, 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: The NH Hotel Group, a part of Minor Hotels, has announced the opening of its latest property in Brazil, NH Feira de Santana. This 210-key hotel is located inside the city’s 31-storey mixed-use Charmant building, which is also home to retail and medical clinics, among other facilities. This property is within easy reach of key locations in the city and just 15 minutes from Feira de Santana Airport. Facilities within the hotel span meeting and event space, laundry service, a gym, parking, a dedicated children’s area, and wellness amenities, including a dry sauna, whirlpool, and rooftop pool.
- 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 is 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
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5.1 Drivers
- 5.1.1 Increasing Demand for Logistics Real Estate
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5.2 Restraints
- 5.2.1 Rise of e-Commerce Affecting the Physical Store Space Demand
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5.3 Opportunities
- 5.3.1 Strong Business Activity in Sau Paulo
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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
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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
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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
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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*
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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*
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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
Brazil Commercial Real Estate Industry Segmentation
Commercial real estate, investment property, or income property is real estate intended to generate a profit, either from capital gains or rental income. A complete background analysis of the Brazil Commercial Real Estate Market, including the assessment of the economy and contribution of sectors in the economy, a market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.
The Brazil Commercial Real Estate Market is segmented by type (office, 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 sizes and forecasts in value (USD) for all the above segments.
| 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 58.57 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.
