The Brazilian luxury real estate market remains resilient despite rising credit costs. São Paulo’s prime region, Jardim Paulista, sees scarce launches due to limited land.
Developers prize these rare opportunities for the potential to command above-average rates per square meter.
Gafisa, a leading developer, has confirmed plans to develop a high-end condominium on the luxurious Oscar Freire Street.
The strategy is part of Gafisa’s ambition to consolidate its position in the luxury segments of São Paulo and Rio de Janeiro.
CEO Sheyla Resende emphasizes the company’s shift towards catering to affluent clientele with unique projects and desirable locations.
The project is located between Melo Alves and Consolação streets, home to renowned brand stores for over three decades.
Details of the project’s commencement remain undisclosed, but Gafisa aims to preserve the neighborhood’s identity while adhering to luxury market standards.
Gafisa’s strategy involves competition with other luxury real estate developers like JHSF, Cyrela, EZTEC, Helbor, and specialists like Zabo Engenharia and Adolpho Lindenberg.
Details of the Oscar Freire project remain embryonic. However, project development is underway in one of Jardins’ most valuable corners, where square meter prices range from R$40,000 to R$50,000 (US$9,000), far exceeding São Paulo’s average of R$10,000.
The Oscar Freire development marks Gafisa’s third luxury project in sought-after São Paulo areas.
This adds to five other ventures in Rio de Janeiro, including a R$180 million land acquisition on Vieira Souto Avenue.
Despite a turbulent market, Gafisa’s stocks had a positive performance in May, with a 17% increase on the Real Estate Index (IMOB), outperforming the Ibovespa (+3.74%).
The recent approval of São Paulo’s new Master Plan is expected to favor builders focused on high-standard developments.
With information from Bloomberg