Trial at the Court of Justice defines the future of new buildings in SP

Several current urban problems in São Paulo are linked to the 2024 Zoning Law revision, which changed the rules governing land use and occupation in the city, favoring the construction of buildings with dozens of floors. The revision allowed for the expansion of densification areas and the perimeters of ZEUs (Urban Structuring Zones), where taller buildings are permitted within the city.

The Master Plan is the set of rules used by the municipality to guide the city's growth, determining which areas should experience greater or lesser real estate expansion. The Zoning Law, in turn, defines exactly what can or cannot be built, block by block. Recent revisions to these regulations triggered a rush from the real estate market, as they expanded the sections of the city where larger buildings are permitted.

In February, the Court of Justice (TJ) issued an injunction that temporarily suspended the issuance of new construction, demolition, and vegetation removal permits, and halted construction work on 168 city blocks in the capital, based on a Direct Action of Unconstitutionality (ADI) filed by the Public Prosecutor's Office. A total of 4,459 urban licensing processes under review were frozen. In March, the City Council appealed to the Supreme Court (STF), and the following month, Justice Edson Fachin suspended the injunction.

Now, the Special Panel of the Court of Justice, comprising 25 members, is set to rule on Wednesday (26th) on the merits of the case seeking the definitive annulment of the Zoning Law revision, with implications for many neighborhoods across the city. The Public Prosecutor's original case incorporates a petition from the 30 Andares Não (No 30 Floors) movement, which operates in the Brooklin and Campo Belo areas in the southern zone. The area was classified as a Mixed Zone (ZM), where only buildings of up to eight floors were permitted.

"The law's approval by the City Council in 2024 was carried out without proper public participation, without technical studies, and without transparency," said Talita Carvalho, founder of 30 Andares Não. "We only became aware of the consequences when demolitions began in the neighborhood and we discovered that construction companies were starting to erect residential towers with more than 30 floors."

The City Hall argues that the legislative process that approved the revision strictly complied with all legal requirements, highlighting the holding of 38 public hearings and the broad transparency of the debate in the City Council.

However, the court ruling that upheld the suspension noted that many changes were inserted into the revision shortly before the vote by city councilors.

Furthermore, the Municipal Attorney General's Office stated in March that the widespread halt to construction work affected not only the private sector, but also daycare centers, schools, health clinics, and social housing, while generating serious legal and economic uncertainty in the real estate sector.

The sudden verticalization in many areas is associated with the expansion of the Urban Transformation Structuring Axes, established in the 2023 Master Plan revision alongside public transportation lines. The Zoning Law revision extended the radius of these axes. Around subway and train stations, it increased from 600 to 700 meters, and along bus corridors it rose from 300 to 400 meters. These expanded areas were converted into ZEUs.

According to attorney Heitor Marzagão, from the Defenda São Paulo movement, responsible for the petition that incorporated the Brooklin and Campo Belo cases into the ADI, if the Court of Justice votes in favor of unconstitutionality, the previous Zoning Law, from 2016, will come into effect until the City Hall presents a new proposal and enacts a new law.

"I believe the Zoning Law revision will be struck down, but it is likely that the Court of Justice will allow some modulations, such as keeping works in progress and permitting projects with building permits to be carried out," says Marzagão. "In recent weeks, given the proximity of the ruling, there has been a significant acceleration in permit applications."