Brazil experiences colossal surge in office rental market
News: comparison of Brazil’s rental markets to mainstays of NY, HK and Tokyo.
A worldwide surge in the rental market has sent rental figures soaring to new heights, taking Brazil along with it.
In 2010, a positive change overtook the real-estate market with the greatest impacts felt in Asia and South America but more specifically, Brazil. It stood out as a realty beacon amongst its neighbors by accomplishing feats it never attained before and in the process gained a permanent place as one of the most enterprising players in the realty market.
Brazil in 2010
The country at this time was experiencing one of its greatest moments in the real-estate arena: it was registering the greatest boost in its history with its largest city, Rio de Janeiro, being the first to dethrone New York from its top ranking realty position.
Other South American highlights at the surge:
- The strongest regional rental performance was registered in South America, recording a rental growth of 12%.
- The rental upsurge in Brazil was up more than 25% turning it into one of the most expensive spots within the Americas region. In Rio de Janeiro, office rental was up 47%, the highest rental increase, with Sao Paulo coming third at a low 4%.
- According to Mariana Mokayad Hanania, manager of Cusham & Wakefield South America, the rental price rise in Rio de Janeiro’s office market resulted from the existence of high demand and low supply in the city.
- With the exception of Argentina, which saw the fall of its rental prices, others showed significant uptrends. In Chile, rent price was up 8%, and in VeneZuela the increase was even more pronounced at 13%.
Comparing performance with competitors in 2010
There has been a perceptible shift from the highly developed countries to the Asian and Americas markets. The shift has been the result of the resilience and sound policies of these markets as well as the willingness of foreign interests to travel and to invest in these lucrative and vibrant markets.
- In the U.S. performance has registered a decline of 2% during the year due to subdued demand in most of the cities. Rents however have shown a marked uptrend for Midtown New York of 10% which escaped the clutches of the recession more quickly than the rest of the country.
- In Hong Kong, rental levels soared to 51% fueled by strong demand due to large corporate expansions, new businesses and the dearth of premium office space.
- For Tokyo, the figures did not tally up with the regional trend of increases but managed to hold on to its status as the third most expensive location in the world.