The latest Brazilian office real estate analysis by international consultants Cushman & Wakefield for quarter 3 2010 – pointed to the average prices of Class A office space rising in Rio de Janeiro, São Paulo, Salvador (Bahia state) and Vitória (Espírito Santo).

Rio de Janeiro saw the largest rise averaging at R$ 141.6 per m² per month – some 36.7% above the second quarter of 2010 and a 60 percent recovery compared to same period in 2009.  These figures have served to reinforce local market opinions that the supply of new office space still remains very low.

Vitória witnessed a massive 54 percent increase in price when compared to the same period of last year – with the price per m² per month reported at R$ 47. The city has witnessed such growth due to an increased amount of business development in the region fuelled by the pre-salt petroleum oil findings as well as several other economic factors.

In the metropolitan region of São Paulo, the country’s largest city in terms of economic wealth and population, the average asking rental price for Class A offices in the third quarter was a reported R$ 91.2 per m² per month –3.7 percent higher than the previous quarter and 13.5 percent more than in quarter 3 of last year.  The report illustrated the highest valued regions – in order – as: Faria Lima at R$ 125.7 per m² per month; Itaim at R$ 101.6 per m² per month and Vila Olímpia at R$ 93.3 per m² per month.

Brazil’s third largest city (in terms of population), Salvador also witnessed a rise of 35 percent reaching R$ 47 per m² per month compared to R$ 35 per m² per month in the third quarter of 2009. Salvador’s port is used as an international trading centre and has a large oil refinery as well as a petrochemical plant.  Other prominent industries include tourism, food processing, textiles, iron/steel, ferroalloys, cement and shipping.

Ruban Selvanayagam

www.brazilinvestmentguide.com