Center of São Paulo will undergo a process of urban renewal

Leitura de 6min

Through a partnership between public and private initiative, the municipal government intends to modernize the image of the region.

The center of São Paulo – an area known for its historic architecture and the great number of people who circulate there every day – has been the object of various urban renewal plans in recent years. None, however, has gone ahead or produced significant results. Recently the region has fallen under the spotlight once again, following the announcement by Mayor Fernando Haddad of the Casa Paulista program – literally, Paulista Home. City authorities plan to use public-private partnerships to modernize the image of the region.

More than R$4.6 billion will be destined for construction of 20,000 dwellings to house around 80,000 people. The project is conceived to encourage a social mix, aiming for residents of varying salary levels. Goals for the program also include revitalizing the commercial and cultural structure of buildings in the region.

It’s an ambitious plan, when you take into account the bureaucracy, the zoning changes and the illegal occupation that today is a reality in the region. On the other hand, it’s an interesting proposal given its wide scope, involving not just housing but also areas of commerce and services,” said José Victor Cardim, Tenant Representation manager at JLL.

Cardim said that the residential development of the city center will tend to contribute even more to the growth of the transportation and services sectors, the later including bars and restaurants, and this will increase the interest of people to live in the region: “If the project does in fact go ahead, then property prices will certainly rise.” Currently, some 20% of jobs in São Paulo state are located in the central region of São Paulo city. The region is replete with old offices, typically in buildings dating from the 1960s and 1970s and occupied by service companies and the operational divisions of major companies.

“Changes that modernize the city center can transform it into a viable alternative to regions that today suffer from a lack of building land, for example Avenida Paulista,” Cardim said. The availability of land, coupled with the great variety of public transport and a future upgrade in public security, indicate the potential for real estate in the region in the coming years.

As this program is put into effect, so the center will tend to become a good option for locating commercial developments in São Paulo,” the JLL executive predicted.