REAL ESTATE

In the past five years, the Brazilian real estate market has become a strategic pillar for investors seeking portfolio diversification and asset security. According to the Brazilian Association of Real Estate Developers (ABRAINC), the sector recorded a robust growth of 8.2% in the volume of property sales in 2023, reflecting the segment's resilience, particularly in a context of historically low interest rates. The growing demand for both residential and commercial assets was further intensified by economic stabilization, creating a more favorable investment environment, which attracted not only domestic investors but also foreign capital, particularly from real estate investment funds.

The market's appreciation is evidenced by data such as the FipeZap Index, which indicates an average increase of 10% annually in property prices since 2018, with a notable disparity between major cities and peripheral regions. Consumption dynamics have also shifted, with increasing demand for long-term rental properties and those leased through digital platforms like Airbnb, which have proven effective channels for maximizing passive income. Moreover, the sector has been driven by the renewal of urban structures and the adaptation to new housing and commercial needs generated by the pandemic, resulting in a transformative movement in the real estate market.

The growth potential of the Brazilian real estate market is widely recognized by industry experts. According to CBRE, a global consulting firm, the commercial property market, particularly in the logistics and industrial warehouse segments, is expected to experience a 5% expansion in the next two years, driven by the growing demand for e-commerce and the reconfiguration of production chains. The combination of a stabilized economic environment, increasing domestic demand, and innovations in real estate financing positions the market as a strategic and highly profitable choice for long-term investors.

Globally, the real estate market has also experienced impressive growth in the past five years. According to the "Global Real Estate Outlook" report by Deloitte, the global real estate market saw a cumulative growth of 5.3% between 2018 and 2023. This growth was primarily driven by the markets in the United States, China, and Europe, which together account for more than 50% of the total global market value. However, the commercial real estate segment faced some challenges, with a decline in demand for office spaces and shopping centers due to the pandemic and the rise of remote work, while the logistics and industrial real estate market thrived, reflecting the exponential growth of e-commerce and globalized supply chains.

The logistics real estate market, for example, performed exceptionally well in recent years. CBRE, one of the largest real estate consultancy firms in the world, estimates that the logistics real estate segment grew 7.4% annually worldwide between 2018 and 2023, driven by an increasing demand for distribution centers and industrial warehouses. In Brazil, this segment also stood out, particularly in cities like São Paulo, which, according to data from Cushman & Wakefield, saw an 11.7% increase in the absorption of logistics space in the first half of 2023.

Another segment that saw strong appreciation was residential real estate, especially in secondary markets such as medium-sized cities in Brazil and Europe. Sector data indicates that, in some regions of Europe, the average price of residential properties increased by 8% per year between 2018 and 2023. In Brazil, the appreciation of properties in inland cities and mid-sized metropolitan areas was accelerated by factors such as the search for a better quality of life and the expansion of urban frontiers, phenomena that were intensified by the pandemic.

In terms of real estate investment funds, which represent a popular investment vehicle in Brazil, the data is equally impressive. The share of real estate funds in the Brazilian capital markets increased from 3.2% in 2018 to 4.9% in 2023, according to ANBIMA, reflecting the attractiveness of this asset class due to its stable profitability and tax exemptions for individual investors. This demonstrates the growing appetite of Brazilian investors for low-risk, high-liquidity alternatives.