The Studio Apartment Boom in São Paulo: A 2024 Snapshot
In 2024, small studio apartments in São Paulo are in high demand. Over 80,000 units under 45 square meters were sold this year. According to Goldman Sachs Research, these sales represent 80% of all property transactions in the city over the last 12 months. This trend shows that more people now choose small studios over larger apartments.
The growth of studio apartments has been rapid over the years. Between September 2017 and September 2022, the city saw 60,000 new studio launches, and about 46,423 of those were sold. In 2016, studios made up only 12% of all new launches. By 2022, that figure had risen to 34%. Projections for 2024 show even more studios, increasing from 7,000 launches in 2016 to an estimated 52,000 in 2024.
Location is very important in this market. Studios that are near metro stations, universities, and corporate centers sell very quickly. These areas attract young professionals, students, and workers who need to be close to their workplaces or study centers. In addition, many investors are buying studios to rent them out on platforms like Airbnb. This rental market has become a key driver of growth, offering good returns on investment.
However, some experts warn about a possible market saturation. They point to a similar situation in the early 2000s with flats, where an oversupply led to a drop in prices by up to 75%. If too many studio apartments are built too quickly, there is a risk that prices may fall in the future.
Looking at the bigger picture, São Paulo experienced a massive real estate boom between 2010 and 2022, with over 400,000 new apartments added to the market. The surge in studio apartments is a part of this overall trend and reflects changing living habits. More people today prefer smaller, more affordable homes, especially in big cities.
In summary, the studio apartment market in São Paulo is booming in 2024. With high sales numbers, attractive locations, and a mix of buyers including both residents and investors, studios are reshaping the housing market. It will be interesting to see if the market can sustain this growth without causing a drop in prices. For now, small studios remain a popular choice in one of the largest cities in Latin America.
QUESTIONS
- Do you think the popularity of studio apartments in São Paulo reflects a global shift towards minimalist living?
- How do you feel about the rise of small living spaces? Would you consider living in a studio apartment?
- What impact do you believe the surge in studio apartments has on traditional family housing in urban areas?
- Do you think the trend of purchasing studios for short-term rentals benefits or harms the local housing market?
- How might the increase in studio apartments influence the cultural and social dynamics of São Paulo’s neighborhoods?
- Are there potential downsides to the rapid expansion of studio apartments in major cities?
- In your opinion, does the convenience of living near metro stations and business centers outweigh the limited space of a studio apartment?
- How do you foresee the future of the real estate market in São Paulo if the demand for studio apartments continues to grow?
- Do you believe that the trend towards smaller living spaces is a temporary fad or a lasting change in urban living?
- What factors do you think are driving individuals to choose studio apartments over larger, traditional homes?
