One of the biggest drivers of developer behavior for the past decade was real price appreciation in São Paulo. In fact, in the metropolitan area, the average price increase in real terms was 71%.
Certain regions of São Paulo, and any major metropolitan area, possess higher quality resources, better infrastructure, schools, greater safety, etc. In addition, in São Paulo these are the areas that happen to be most affected by the new zoning regulations and the city’s encouragement to increase density, favor mobility, and focus on transit-oriented and mixed-use developments. These areas had the highest price appreciation in the past 10 years.
(Nominal price evolution for selected districts) – Nominal prices in the highly sought after Itaim, Jardins, Pinheiros, Moema, Vila Mariana, and Vila Madalena increased approximately 3X in less than ten years (including the crisis period). Approximately 1.7X adjusted for inflation.
.
