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Movement gaining traction in 2026 combines private capital, tax incentives, and public funds to restore historic buildings and transform part of downtown São Paulo into thousands of new housing units
A real estate transformation is underway in downtown São Paulo, where dozens of old, vacant, or underutilized buildings are being renovated to accommodate new residents, businesses, and services. In August 2026, the city reported over 50 properties involved in rehabilitation processes, with projects totaling 5,238 housing units.
The initiative is already beyond planning stages. According to municipal data, 15 buildings have completed retrofit work, while many others are at various stages of approval, funding, or construction. Meanwhile, private investors are pouring millions of reais into the recovery of buildings that have lost value or have been unused for years.
In some private projects, necessary investments can range from R$ 15 million to R$ 20 million per development, according to estimates presented by entrepreneur Maxime Barkatz of Ilion Partners to Exame. The company claims to have approximately R$ 400 million allocated to real estate retrofit projects.
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Old buildings are converted into apartments without the need to tear everything down
Retrofit allows for repurposing existing building structures, modernizing electrical, plumbing, elevator, security systems, facades, and interiors to adapt them to current needs.
In practice, buildings that previously functioned as offices, hotels, or headquarters can now house dozens or hundreds of apartments.
This model has a significant advantage in central areas: the buildings are already located in zones equipped with subway, buses, sanitation, electricity, commerce, schools, and public services, reducing the need to create new urban infrastructure around the developments.
For investors, the opportunity arises precisely with properties that have depreciated over the years. In some cases, buying and renovating may represent an alternative to constructing a completely new building in areas where land prices are high.
City hall can cover up to 25% of certain renovation costs
Part of this progress is linked to incentives created by the São Paulo City Hall to make projects financially more attractive.
One of the main instruments is the Economic Subsidy, a mechanism through which the city can cover up to 25% of eligible expenses for a rehabilitation.
The program foresees up to R$ 1 billion in public funds to encourage projects in the central region. Between 2023 and 2025, the first three calls selected 31 projects, which received approximately R$ 67.5 million in approved subsidies.
On August 13, 2026, the City Hall announced a new round, making available an additional R$ 200 million for new projects. Applications started on August 15 and will continue until October 13, 2026.
The largest portion of the available funds, approximately R$ 600 million, is allocated for projects classified under categories HIS-1 and HIS-2, targeted at families with an income of up to six minimum wages.
In addition to funding for construction, projects can receive tax breaks
Another important tool is the Requalifica Centro, established by Municipal Law No. 17,577, in 2021.
Depending on the location and characteristics of the property, projects can obtain benefits such as exemption from ITBI, a reduced ISS rate of 2%, temporary exemption from IPTU, and waivers from certain municipal fees.
In June 2026, new rules expanded the program’s urban reach to areas like Sé, República, Brás, Bom Retiro, and Pari, as well as sections of Bela Vista, Santa Cecília, and Liberdade.
However, this does not mean that all properties in these regions automatically receive all tax benefits. Some exemptions remain limited to the perimeter defined by specific legislation.
Former Chrysler Building converted into residential complex with 283 apartments
Some projects demonstrate the scope of the transformation.
The former Chrysler Building, located in Praça da República and designed by architect Jacques Pilon, was converted into a residential complex with 283 apartments. The property received the completion certificate for the requalification in January 2024.
Another example is the Renata Sampaio Ferreira Building, a construction from the 1950s protected as a historical heritage. The building was adapted to accommodate 93 residential units, preserving original architectural elements.
Meanwhile, the former 7 de Abril Building, which housed TELESP, has a project to accommodate 282 residential units.
Other projects include properties such as the Independência Building, with 149 units, the Margarida Polak Lara, with 140, the Rodrigo Soares, with 122, the Taquari, with 120, and the Virgínia, with 119.
There are also smaller projects, showing that transformation is not limited to large towers. A building located on Rua São Bento, for example, plans to offer just seven residential units.
Even famous buildings are part of the incentive policy
The list of benefited properties also includes well-known constructions in the city of São Paulo.
The Copan Building, designed by Oscar Niemeyer, is included in the Economic Subsidy program with an approved benefit of approximately R$ 13.39 million, equivalent to 22.36% of the eligible costs.
This does not mean that Copan is abandoned. The building remains occupied and is precisely an example of why it is incorrect to state that all more than 50 properties involved in the program were empty.
Another iconic building is the Martinelli, which also appears among the projects covered by the municipal policy, with approximately R$ 1.37 million in approved subsidy.
Number of completed retrofits surged from 9 to 15
The data shows that the pace of construction has increased.
At the end of 2025, the city hall reported 48 buildings involved, 5,149 housing units planned, and nine completed retrofits.
By June 2026, the balance had shifted to 49 properties, 5,238 housing units, and 15 buildings already renovated. Two months later, the official count had reached 50 projects, while information presented by the municipal administration at the end of August already mentioned more than 50 buildings.
This means that, in less than a year, the number of buildings with completed retrofits increased from nine to 15, while the total number of planned housing units surpassed the mark of 5.2 thousand units.
Recovering old buildings has become a million-dollar business in downtown São Paulo
The transformation reflects a significant change in how part of the real estate market begins to view downtown São Paulo.
Instead of abandoning old structures or jumping straight to demolition, investors are attempting to purchase depreciated buildings, renovate them, and transform them back into income-generating assets.
At the same time, the city is utilizing tax incentives and public resources to try to expedite the occupancy of a region that has ready infrastructure, public transport, and thousands of properties built over decades.
The result is an operation that blends architectural heritage, housing, private investment, and public money, with more than 5,200 housing units planned and dozens of buildings undergoing one of the largest recent waves of retrofit in downtown São Paulo.
