SP City Hall doubles auction to build above the limit at the request of developers

The City of São Paulo doubled the Building Potential Certificates (Cepacs) auction in the Água Espraiada Urban Operation in response to demands from entrepreneurs in the real estate market. The event on March 8 may generate up to R$696 million, considering the minimum price per unit set at R$2,175. The initial forecast was to offer 160 thousand titles, but the total rose to 320 thousand.

The resources collected by the public coffers go to infrastructure and mobility works in the region. Cepacs are titles that allow developers to build buildings above the limits established by law in each neighbourhood. In addition to construction companies, the auctions also attract investors, who can resell the Cepacs on the secondary market on the stock exchange.

The Urban Operation Água Espraiada covers stretches of Marginal Pinheiros, Berrini, Brooklin, Chucri Zaidan and Jabouri. These are some of the main growth axes of the São Paulo real estate market, which explains the movement of people in business together with city halls to increase the auction offer. The last competition for Operação Urbana Água Espraiada took place in 2012. According to developers, it is a long time who depend on Cepacs for new projects.