The presence of Brazilian investors in Real Estate Investment Funds (FIIs) grew 660% from December 2018 to January 2022, according to B3 data. According to analysts, the lowering interest rates (a move that took place until 2021) and the quality of products improvement in this asset class were the main causes for the great interest of the market.
At the end of 2018, there were 208 thousand people present in this type of investment. Over three years later, that number has risen to over 1,583 million. The 660% jump has its reasons. According to Laércio Boaventura, investment director at Vectis Gestão, the increase in interest in this asset class is closely related to improvements and changes in investor perception of market products in recent years.
“In the beginning, real estate funds were classified as alternative investments. At that time (2005 and 2007), people thought it was a very high-risk business when talking about alternative investment. It is not”, says Boaventura.
Boaventura explains that the first FIIs were intended only for qualified investors. Over time, this restriction changed. “Since then (2022), funds launched were intended for the general public. So, it is a product that you can join with R$100”, he adds.