According to a recent article on Estado de SP, for the first time in almost ten years the lease prices of commercial offices in São Paulo ended the year (2013) in negative territory, a clear indication of a much-needed correction.
Seems like the early signs of a bubble deflation.
“Prices have already reached the maximum limit so we’ll hardly see upward price adjustments above inflation,” said Fernanda Rosalem, Director of of real estate firm Cushman & Wakefield.
The firm’s research shows that the average asking price in São Paulo dropped about 15% in 2013. In addition, vacancy rates increased from 14.6 % in late 2012 to 17.2 % in December 2013.