BRAZIL Law and Practice Contributed by: Mariana Cobra, Janaína Vargas, Mayara Zanini and Marcela Freire, Mattos Filho
1. General 1.1 Main Sources of Law The main sources of Real Estate Law in Brazil are: • the Federal Constitution (1988); • the Civil Code (Federal Law No 10,406/2002); • the Urban Land Statute (Federal Law No 10,257/2001); • the Public Registration Law (Federal Law No 6,015/1973); • the Real Estate Development Law (Federal Law No 4,591/1964); • the Urban Ground Parcelling Law (Federal Law No 6,766/1979); • the Urban Lease Law (Federal Law No 8,245/1991); • the Rural Land Statute (Federal Law No 4,504/1964); • the Forestry Code (Federal Law No 12,651/2012); • the Security Framework Law (Federal Law No 14,711/2023); • municipal laws on construction and zoning rules; and • case law. 1.2 Main Market Trends and Deals Inflation has improved and a downward trajec - tory in interest rates was initiated by the Brazilian Central Bank in the second half of 2023. This has bolstered investor confidence and increased real estate transaction activity. Other factors that may influence the pace of the 2024 market include the upcoming elections around the world and the ongoing geopolitical tensions. Brazil is less exposed to such factors and there - fore more attractive to investments in the near- term, as compared to other jurisdictions.
The accelerated growth of AI is driving the increase in the demand for data storage and data centres. As a result, there has been a growth in the data centre sector. Once considered a subsector, the cash and car - ry business has become mainstream in the retail sector and fund allocations have shifted accord - ingly to replace, remodel or expand underper - forming core asset classes, such as local mar - kets and supermarkets. In 2023, there was a decrease in new hotel launches compared to 2022, when Perse was at its peak. The hotel sector is warming up and the economy and super economy segment makes up the majority of new launches. The business and events segment is expected to perform bet - ter than in the years immediately following the COVID-19 pandemic. The performance of the leisure segment performance depends on the respective region. High-end hospitality at leisure destinations (eg, the North East) has seen an upward trend. Climate change effects have been seen all over the globe, as evidenced by natural disasters. As 40% of the emissions originate from real estate projects, stakeholders are driving investments aiming their reduction or the generation of car - bon credits. These are some significant real estate deals in the last 12 months in which Mattos Filho has participated. • Logistics: sale, by GTIS Brazil Logistics FII to CSHG Logística FII of its BRL1.37 billion logistics portfolio comprising four logistic buildings in the state of São Paulo. • Cash and carry: highly complex, multidiscipli - nary and multijurisdictional transaction for the
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