According to Cushman & Wakefield, the real estate market in Sao Paulo and Rio should deliver a record number of high-end commercial buildings in 2012. More specifically in São Paulo, commercial space to be delivered is estimated at 570,000 squared meters, a whopping five times more than the 2011 volume. Too much supply, perhaps?
The offices vacancy rates fell to 7.8% in 2011, the lowest level since 2008. The reduction of vacant spaces was reflected in rental prices in 2011, which went up 24% when compared to 2010.
For Mariana Hanania, the market research Director at Cushman in South America, the supply growth should “increase the vacancy rates and stabilize prices”, but she said “there is no bubble”. “This supply increase reflects the real estate market boom. The Sao Paulo market absorbs the excess supply fairly quickly,” she said.
Ok, no bubble then.