The affordability that makes Buenos Aires so attractive for Brazilian tourists is also luring more Brazilian companies here to establish national and regional offices.
A new report from Colliers International Brasil examines the average cost per square meter of office space in several Brazilian cities compared to Buenos Aires and other major metros worldwide.
The Newspaper of Sao Paulo headline summed up the report, “Buenos Aires is a bargain for us.” The pechinca bonaerense means average Buenos Aires office space is approximately 90-150% cheaper than Brazilian markets like Cajamar (US$12.10/m2), Campinas ($14.70/m2) and Greater Sao Paulo ($15.00/m2). Colliers International Brasil says Sao Paulo office space is the fourth most expensive in the world behind Tokyo, Zurich and Hong Kong.
While several Brazilian banks and conglomerates have chosen Microcentro and Puerto Madero for their BA base or Argentine headquarters, more and more are opting for corporate office parks rising in northern neighborhoods like Pilar and Olivos. New construction premium office space in these areas of Zona Norte typically rent for US$8-12 per square meter.
In terms of Brazilian DFI in Argentina, the first wave was primarily large Brazilian banks and other companies buying large Argentine firms just to enter the market. The current wave is primarily medium-sized businesses looking to complement and specialize the export process which is actually better for the supply chain, because it involves more PYME’s and high-tech companies. (Full Story in Portuguese)
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