Despite having sprawled across 2,089 hectares, the central area, according to the municipality, has seen many businesses that once thrived there migrate to other parts of the city, for a variety of reasons, including economic growth and Urban Consortium Operations.

The Secretary underscores that the Program is not merely an initiative to rejuvenate buildings but will also give downtown São Paulo a fresh new identity. He also notes that, thanks to its existing infrastructure, the region can comfortably accommodate up to 200,000 people.

To facilitate this revitalization, it's imperative to offer not only urban incentives but also fiscal incentives. One such incentive outlined by the program is a three-year exemption from the Urban Property and Territorial Tax (IPTU) after completing renovations.

According to the secretary, there are currently 25 retrofit projects in progress, with six of them already granted licenses and 19 in the evaluation phase.

Historic Preservation

In addition to retrofitting, heritage-listed developments benefit from the constructive potential. The Alexandre Mackenzie, better known as the Shopping Light, is an example. It was inaugurated in 1929 and served as an office for the electricity distribution company The São Paulo Tramway, Light and Power Company.

The shopping mall, which now occupies the asset, has been in the area since 1999. Beyond to preserving history, the development has 180 shops, hosted a rooftop nightclub, features a convention center, and has a permanent exhibition on its history.

"Besides being beautiful, it's sustainable"

For architect and urban planner Fernando Consoni, despite not being a widely popular movement, retrofitting is essential for the city, especially from an environmental perspective. "It's a practice that we strongly encourage. It's a way to give longevity to a building. The longer it lasts, the more sustainable it is. So, applying retrofit to a building is much more ecologically friendly than demolishing it and constructing a new one. This applies to both waste generation and carbon emissions. Therefore, retrofitting, renovation itself, is always the better option. It's that famous saying, 'Besides being beautiful, it's sustainable'", he explains.

According to the United Nations Environment Programme (UNEP), the construction sector was responsible for over 34% of energy demand and about 37% of CO2 emissions during 2021.

"So, what is more sustainable? A building that lasts for 200, 300 years, but may not have a very sustainable construction process at its core, or is it better to have a shorter-lasting building, but with a more sustainable construction process? So, there are two lines of thinking regarding sustainability in the construction industry that I think, in the very near future, will find common ground", says the urban planner.

According to Market Analytics data, the average asking price for commercial developments in downtown São Paulo is R$ 57.69 per square meter (US$ 11.83*), which is slightly above the price for areas around Marginal Tietê (R$ 49.68 per sqm - US$ 10.19*) and roughly equivalent to Chácara Santo Antônio (R$ 57.62 per sqm - US$ 11.82*) and Paraíso (R$ 57.88 per sqm – US$ 11.87*).

*Real to dollar exchange rate as of September 14, 2023, at 6 p.m.