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Brazil’s commercial real estate sees new opportunities

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The Latin giant has witnessed a greater inflow of real estate funds in recent years

In recent years, Brazil has witnessed a greater inflow of real estate funds. The greater inflow can be attributed to low interest rates at a record level coupled with the rise of investors seeking to invest into opportunities with higher yields. 

Previously, the commercial real estate market in Brazil had very few local players, but the industry game is changing. The number of residential properties for rent in Rio de Janeiro has reached its highest level in five years. This is based on a finding published by APSA real estate administrator, showing a record increase in the number of vacant properties in September.

Funds managed by Banco BTG Pactual have become the biggest buyers of Brazil’s commercial real estate. It is reported that the fund manager has been capitalising on the pandemic which has led to a series of attractive opportunities and real estate prices in the Latam region. 

This year, the fund manager has invested $658 million in logistics centres, office buildings and mortgage-backed securities, media reports said. The investment is following the fund manager’s successful raise of 4 billion reais from investors. The amount is recognised to be the highest in the industry so far.

Although the currency volatility in Brazil encouraged foreign investors to keep away from the domestic real estate market, some alternative-investment firms continue to focus on it. In October, BTG was considering buying additional stakes in the country’s hedge fund firms on the back of increasing inflows, according to media reports.

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