The economic recovery has slowed down all around the world in recent months, in part due to new outbreaks of Covid-19 in China, and in part due to the conflict between Russia and the Ukraine, both of which have significantly impacted economic activity and global inflation. Brazil experienced unexpected growth in the first quarter of the year, and all indications are that this will also be the case in the 2nd quarter. As a result, the most recent Central Bank inflation report, published on June 30, now expects the GDP may grow 1.7% this year, an improvement over the 0.5% expected early in the year.
Transactions slowed down in the 2nd quarter of the year, with a drop in gross and net absorption. Nevertheless, occupied space increased 16 thousand sq.m, despite continued returns. New inventory was well below recent quarters, keeping the vacancy rate stable with little decrease, going from 23.84% to 23.77%.Download Sao Paulo Office Market Report Q2 2022