The arbitration process used to resolve disputes regarding property vacancy during lease contracts is faster and less costly than traditional eviction proceedings, carrying the potential to drive down rental prices in Brazil. This is according to a study conducted by LCA, recognized as one of the country’s leading economic consultancies.<\/p>\n
Data from the study, commissioned by QuintoAndar, reveals that eviction court rulings take an average of 472 days, whereas decisions in arbitral proceedings are handed down in an average of 70 days\u2014approximately seven times faster.<\/p>\n
“This is an unprecedented survey in the country, and the results showing arbitration’s impact on rental disputes are impressive. Empirically proving that it resolves disputes so much faster highlights how excessive delay in the conventional model creates market inefficiency,” says Pedro Salerno, project manager at LCA and coordinator of the study.<\/p>\n
Arbitration is an alternative dispute resolution method. Instead of turning to the Judiciary, the parties opt for one or more technical experts to resolve the dispute within a private chamber. The law regulating the practice turns 30 in 2026. Established as an alternative for high-complexity, high-value disputes, arbitration has been gaining ground in everyday conflicts, such as lease agreements.<\/p>\n
LCA’s study also reveals that the average cost to the landlord is significantly lower with arbitration compared to traditional eviction. Based on an average rent of R$ 2,860, the study shows that in court, the total cost to the owner (uncollected rent during the period plus court fees and legal fees) reaches R$ 52,511 per case\u2014compared to R$ 14,887 when resolution is achieved through arbitration. That represents savings of R$ 37,623.<\/p>\n
In a hypothetical scenario where all new eviction lawsuits in a single year (around 84,000) migrated to arbitration, total savings for owners could reach R$ 3.2 billion, taking into account uncollected rent, court costs, and legal fees, the study highlights.<\/p>\n
For Fernanda Pascale, Chief Legal Officer at QuintoAndar, the numbers demonstrate the impact of adopting a more efficient mechanism in the real estate market. “This study translates the value of speed into financial figures. Arbitration has been consolidating itself as an essential tool for cutting bureaucracy and protecting both parties. By offering a fast, specialized avenue for dispute resolution, we ensure the cycle moves with minimal friction, avoiding prolonged financial and emotional strain for both landlord and tenant.”<\/p>\n
The study also demonstrates arbitration’s capacity to relieve pressure on the Judiciary. Today, the number of cases entering arbitration is virtually equal to the number of cases decided in a year. Meanwhile, more than 132.5 thousand eviction lawsuits remain pending in court\u2014a growing bottleneck: over the past five years, new eviction cases rose by 32%, while court rulings advanced by only 18%.<\/p>\n
Higher supply, lower prices<\/p>\n
Data from LCA’s study further shows the potential impact on rent prices in Brazil under a scenario where all eviction lawsuits migrate to arbitration. In this full migration context, nearly 100,000 properties would return to the market earlier, triggering a supply shock and a downward effect on prices.<\/p>\n
According to the study, the combined effect would be a price reduction of R$ 420 per year: R$ 228 associated with the larger property supply and R$ 192 due to reduced legal risk (based on an average rent of R$ 2,860).<\/p>\n
“By providing greater security and predictability in conflict resolution, it also reduces so-called legal risk, which is typically priced into rent. Arbitration enables property owners to bring their properties back to the market faster. With higher supply, housing costs for tenants decrease. It creates a virtuous cycle where both landlords and tenants win, while lifting an immense burden off the Judiciary,” states QuintoAndar’s Chief Legal Officer.<\/p>\n
Methodology<\/p>\n
The study was conducted by LCA Consultoria Econ\u00f4mica using a robust cross-referencing methodology across multiple databases. Public data from digital rental platforms, the National Council of Justice (CNJ), the Brazilian Bar Association (OAB), and IBGE’s Continuous National Household Sample Survey (PNAD) were utilized, alongside arbitral proceeding data from 2020 to 2025 (from QuintoAndar). Economic modeling evaluated hypothetical scenarios, and the price elasticity of demand and supply for residential rentals was parameterized based on international literature and calibrated to the Brazilian context.<\/p>\n","protected":false},"excerpt":{"rendered":"
An analysis conducted by LCA estimates that if all new eviction lawsuits were to migrate to arbitration within a single year, total savings for property owners in Brazil could reach R$ 3.2 billion.<\/p>\n","protected":false},"author":2,"featured_media":5672,"menu_order":0,"comment_status":"closed","ping_status":"open","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categoria-en":[25],"tag-en":[],"class_list":["post-6052","post-en","type-post-en","status-publish","format-standard","has-post-thumbnail","hentry","categoria-en-data-insights"],"acf":[],"yoast_head":"\n