The global economy continues to recover, although some leading economies showed signs of slowing down in the third quarter due to the pandemic, and the inability of global supply to adjust to changing demand. This has resulted in stockouts in several global supply chains, driving up manufacturing and distribution costs, especially in the automotive and construction industries. Differences in economic activity across countries continues. In the US and Europe, the rapid roll-out of vaccination and the end of restrictive measures made it easier for jobs and the service industry to recover, driving economic activity. In China however, growth slowed due to a resurgence of the Corona virus, once again affecting urban mobility. Year-over-year, although the health crisis remains, and despite the reduction in emergency aid, Brazilian economic performance exceeded expectations, with the GDP ending the quarter 1% higher than in 2020, totaling R$ 2.048 trillion. According to the Brazilian Central Bank, the nation’s GDP will grow 4.7% in 2021.
From the real estate market perspective, even though office space continues to be vacated due to new occupation format, net absorption this quarter closed positive by 6 thousand sq.m. Looking only at CBDs, net absorption was 28 thousand sq.m, close to the historical quarterly average of 32 thousand sq.m between 2007 and 2020. This is the first positive indicator after 5 consecutive quarters of decreasing occupied office space.
Download Sao Paulo Office Market Report Q3 2021