The Brazil commercial real estate market size was USD 37.71 Billion in 2022 and is likely to reach USD 53.67 Billion by 2031, expanding at a CAGR of 4% during 2023–2031. The growth of the market is attributed to the rising demand for commercial properties.
Commercial real estate is a type of property used entirely for business-related work or to provide a workspace instead of living space. Typically, commercial real estate is rented to tenants for putting the area or space into income-generating activities to earn profit through their business operations. Commercial real estate is widely suitable for opening up various business centers including healthcare facilities, office space, restaurants, hotels, resorts, and all kinds of retailers.
Depending on the functions, commercial property is mainly divided into four classes namely office space, retail, multi-family rental, and industrial use. This four main classes of real estates are further fragmented into three classes namely class A, class B, and class C. Class A represents best properties in terms of location, quality of infrastructure, age and aesthetic. Class B includes properties, which usually goes for restoration, and class C properties are aged, in need of maintenance, and located in less attractive areas properties.
In comparison to the residential properties, however, to run a business operation in commercial real estate requires a large amount of capital and systematic engagement for various update business development policies. Publicly traded real estate investment trusts (REITs) is probably a more feasible mode for people to invest in commercial real estate.
The COVID-19 pandemic outbreak had negatively impacted the Brazil commercial real estate market. During the pandemic, emergency lockdown imposed by government body had forced to temporary shutdown of hotels, malls, resorts, and gaming facilities as part of policies to curb the virus spread. Additionally, adoption of work from home policy by many business organizations across the globe resulted in the temporary closure of offices, which considerably affected the market. The market is expected to recover soon due to subsiding COVID cases.
Brazil Commercial Real Estate Market Trends, Drivers, Restraints, and Opportunities
-
Increasing new construction activity as well as low interest rate associated with renting a commercial space are key factors driving the market.
-
Rising rate of expanding office spaces and convenient process of office lease renewals of the properties is projected to boost the market during the forecast period.
-
Decreasing cost of average selling and renting prices for commercial real estate acts as a major challenge that can restrict the market growth in the coming years.
-
Stringent regulations and lengthy process on the approval of commercial property is expected to hamper the market growth during the projected timeline.
-
Surging technological advancements, rapid growth of tech business, and increasing expansion of tech talent are anticipated to create significant growth opportunities for the market.
Scope of Brazil Commercial Real Estate Market Report
The report on the Brazil commercial real estate market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
|
Attributes
|
Details
|
|
Report Title
|
Commercial Real Estate Market - Brazil Industry Analysis, Growth, Share, Size, Trends, and Forecast
|
|
Base Year
|
2022
|
|
Historic Data
|
2016–2021
|
|
Forecast Period
|
2023–2031
|
|
Segmentation
|
Types (Hospitality, Offices, Multi-family, Retail, Logistics, and Industrial)
|
|
Country
|
Brazil
|
|
Report Coverage
|
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
|
|
Key Players Covered in the Report
|
Cyrela Commercial Properties SA; Log Commercial Properties; Bauer Imóveis; Multiplan Empreendimentos Imobiliários SA; and Local Imóveis
|
Brazil Commercial Real Estate Market Segment Insights
Industrial segment to expand at high CAGR
In terms of types, the Brazil commercial real estate market is divided into hospitality, offices, multi-family, retail, logistics, and industrial. The industrial segment is estimated to expand at high CAGR during the forecast period owing to the growing industrialization and urbanization in the country. Moreover, leasing commercial estate property lowers the operational cost of the company, which is a major driver of the segment.
On the other hand, the offices segment is anticipated to register significant growth during the projected period attributed to the significant rise in the demand of office space from tech companies. Moreover, emerging trend of co-working for sharing office space is driving the segment growth further.
Segments
The Brazil commercial real estate market has been segmented on the basis of
Types
- Hospitality
- Offices
- Multi-family
- Retail
- Logistics
- Industrial
Country
Key Players
Competitive Landscape
Key players competing in the Brazil commercial real estate market are Cyrela Commercial Properties SA; Log Commercial Properties; Bauer Imóveis; Multiplan Empreendimentos Imobiliários SA; and Local Imóveis. Companies are focusing on investment in new property builders to maintain their competitive position in the market. Companies have been widely engaged in collaborations, strategic partnership, merger & acquisition, and joint ventures to boost their market share and acquire new buyers.
For instance, in December 2021, Velo, a real estate agent company dealing with a series of rental agreements, was acquired by QuintoAndar, a real estate market place that handles the process of rentals in Brazil. By this acquisition, QuintoAndar gained access to enter in the commercial real estate agents market. In November 2021, Multiplan Empreendimentos Imobiliários SA, a real estate company in Brazil opened its 20th shopping center.
The shopping center was constructed with solar energy plant for electricity and their own effluent treatment plant. The shopping center was estimated to serve population of around 700 thousand residents with services, commerce, and leisure offered in a center.
Request For Customization
Enquiry Before Buying
Speak With Analyst
