Multifamily: A market growing faster than its infrastructure

This concentration is a direct reflection of operational complexity and the limited number of market participants. According to Rebouças, this is characteristic of an emerging sector. 

“Operating these assets is labor-intensive, and it's much easier to run an efficient operation when the properties are concentrated. When I have several buildings close together, I can share key personnel across multiple developments. If I start expanding geographically, operating costs increase significantly. That's why only a few players have pursued geographic expansion.”

Giancarlo Nicastro, CEO of SiiLA, points to the market’s lack of awareness and understanding as a major obstacle to growth. 

“People understand multifamily through a simple translation: residential properties for rental income. So they buy an apartment in a residential building and think they have a multifamily product. There is a lack of understanding of what the product actually is.” 

Although the concept has existed in the market for years, it still struggles to gain traction among operators, investors, and consumers. 

Bruno (a fictitious name), a resident of a high-end multifamily development in São Paulo’s West Zone who requested anonymity, reported several issues related to this type of property. Having lived in a multifamily building for three years, he described the difficulties residents face when trying to resolve basic building service issues—something that should not occur given that these assets are marketed under the premise of having “professional management.” 

“I expected that since there is no condominium association and residents cannot make decisions based on what they want, management would at least have a system that works. They should at a minimum provide the basic services expected in a building where residents pay a high monthly amount,” he said. 

“This is a business model that has already been validated in other countries and was brought to Brazil, but they failed to consider what it actually means to live in São Paulo.” 

In a market lacking standardization—where no part of the sector seems to speak the same language—market analysis becomes essential for guiding investments and management decisions. However, such analysis is hindered by companies’ reluctance to share data, products, and information related to multifamily developments. 

According to Nicastro, unless companies take steps to make the market better understood, its development will remain limited. 

“The product is already little known. The more companies hide information and avoid using channels such as SiiLA to promote their products and disseminate knowledge, the worse it is for themselves. Market opacity is harmful to everyone, but few people understand that. Many believe hiding their product is the best strategy, but it takes time to realize how important transparency really is,” he emphasized.