Brazilians turn from buying property to invest in real estate trusts

With low interest rates, investors in Brazil are dismissing the dream of owning property for rent and moving to real estate investment trusts

real estate trusts
Photo: Inked Pixels/Shutterstock

For generations of Brazilians raised under the prospect of skyrocketing inflation and the forfeiture of savings accounts in the 1980s, purchasing a property to rent out in your golden years was seen as the ultimate retirement goal.

Fast-forward to 2020 and the prospect of a much more stable economy than the turbulent 1980s and the lowest benchmark interest rates of all time have once again kickstarted Brazilians’ dreams of becoming property moguls. As a result, Brazilian real estate investment trusts (FII, in Portuguese) are enjoying their heyday. 

The number of investors in these assets jumped from 121,000 in December...

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