The Brazilian commercial real estate market closed 2024 with clear signs of resilience and adaptation to economic and technological shifts. Despite macroeconomic challenges, such as high interest rates, the sector remained strong, supported by consistent demand for properties and noteworthy transaction volumes, according to Felipe Leite, Partner at Primaz Corporate, a firm specializing in brokerage and structuring for major real estate assets.

“The real estate microeconomy held firm this year. Vacancy rates for warehouses and office spaces dropped, while shopping malls exceeded post-pandemic recovery expectations. Demand for properties also remained solid,” Leite analyzed.

Primaz Corporate recorded over BRL 1 billion in transactions for the sixth consecutive year, a standout performance in a market that saw significant deals, including the sale of the Pátio Higienópolis and Paulista shopping malls by Brookfield to Iguatemi and other funds. This transaction, valued at over BRL 2.5 billion, was one of the highlights of 2024, as reported by REsource in its year-end coverage.

Although property prices have generally remained stable, Leite noted that financially strained property owners had to offer discounts, creating opportunities for investors. “As the yield curve inverted and inflation expectations shifted throughout the year, liquidity in real estate funds was impacted, leading to a decline in transaction volumes,” Leite explained.