Brazil’s Multifamily Market Set for 31.5% Growth in 12 Months; SiiLA Reports Over 9,000 Units Monitored Nationwide

SiiLA's data shows that the current stock of multifamily developments in Brazil totals 556.9 thousand square meters. Of the total stock, 105.6 thousand square meters (18.9%) were delivered within the past twelve months, underscoring the rapid growth of this market.

SiiLA's Multifamily platform also indicates an additional 5,496 units—amounting to 231.4 thousand square meters—will be delivered in the medium term. These units are spread across 28 new towers currently in various stages of planning or construction. Of these, at least 2,907 units—covering 131.7 thousand square meters across 18 towers—are expected to be completed within the next 12 months.

According to SiiLA’s data for the second quarter of 2024, the average price per square meter for multifamily assets in Brazil stands at R$169.03/m², with the current vacancy rate across all mapped developments in the country at 21.26%.

"The multifamily sector is a residential product focused on income generation but approached in a more institutional manner. It is a product that tends to perform very well in Brazil, given that purchasing property at the current interest rates is challenging for most of the population, who instead prefer renting," explains SiiLA's CEO, Giancarlo Nicastro.

Notably, the vast majority of apartment units currently in operation were designed and launched by Vitacon.

The rent value for a unit in a multifamily building is typically higher than that of a regular residential property. However, there’s a significant difference: the inclusion of amenities, which are services provided to tenants, such as laundry facilities, a gym, a pet space, and more. Below, you'll find more details about these amenities:

With the release of data on the multifamily market, SiiLA now provides comprehensive access to information on all multifamily developments mapped by its research and intelligence team, similar to the coverage it offers for the office, logistics, and shopping mall sectors.

This launch marks a significant milestone in the Brazilian corporate real estate market, offering, for the first time, a complete mapping of multifamily properties, including technical specifications, occupancy rates, and rental prices. It also delivers metrics, availability, and customized reports that can guide companies, investors, funds, and other key players in this market in their decision-making processes.

Although still in its early stages in Brazil, the multifamily sector is gaining traction across the country, increasingly attracting clients, developers, managers, and operators.

In essence, the multifamily market comprises residential buildings that provide professional management and apartment maintenance. Additionally, it is distinguished by more flexible rental contracts, offering short, mid, and long stays (3, 6, and 12 months) instead of the standard 30-month leases typical in traditional residential buildings.

Units can also be semi or fully furnished and decorated. In the building’s common areas, services—often included in the rent—range from laundry and pet grooming to coworking spaces, breakfast, cleaning, and even personal-use vehicles.

“It’s a product that aligns well with the current scenario in the country, meeting the expectations of a society in transformation. The housing sector is also recognized for its stability, and companies investing in this market are seeking solid returns,” notes Giancarlo Nicastro, CEO of SiiLA.

The executive further emphasizes that with the mapping of this market through SiiLA's Market Analytics platform, the growing number of players in this segment will have access to the most accurate data and insights to define their strategies and make more informed investments in multifamily developments.

“Our platform now offers a detailed mapping of how many multifamily assets exist, where they are located, the cost per square meter, the services provided at each site, and other critical details,” Giancarlo adds.

With significant scale in the United States, where about 40% of the population lives in rental properties, multifamily properties drive over $3.5 billion in the U.S. economy daily ($1.3 trillion annually) and employ more than 12.3 million workers. These figures on the U.S. real estate market were compiled by XP in partnership with CONTI. 

"Players have started paying more attention to Latin American markets, which, despite being characterized by volatile interest rates, have high housing demand," concludes Giancarlo.