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The year 2024, particularly its final quarter, has been marked by high interest rates, directly impacting the real estate sector and the performance of real estate investment funds (FIIs). The REsource team interviewed two prominent experts on FIIs: Ricardo Figueiredo, Executive Manager of Real Estate Investment Funds at Finclass and Partner at Grupo Primo, and Marcos Baroni, Real Estate Investment Funds Analyst at Suno Research.
Figueiredo highlighted that expectations for the economy at the end of 2023 were “much more optimistic than the reality encountered throughout the year.” According to him, forecasts had anticipated a Selic rate close to 9%, GDP growth of 1.5%, and an exchange rate of approximately BRL 5 per dollar. However, 2024 presented a more challenging landscape, with rising Selic rates, a stronger dollar, and the IFIX index showing depreciation. “During the pandemic in 2020, the IFIX fell 10.2%. Everything points to 2024 consolidating an even worse performance,” Figueiredo noted.
Baroni added that until September, FIIs had been “moving sideways,” but in October, the Selic hike began to put pressure on real estate asset prices. “Investors started favoring fixed-income products, which became more attractive,” he explained. Despite this, both experts agree that this is an opportune time to invest in FIIs, with shares being traded below their net asset value.
“Today, the scenario of very high future interest rates puts pressure on real estate funds but, at the same time, offers discounted prices, especially for funds with a strong track record of management and quality. For those with patience and a long-term strategy, this moment can be very favorable,” Baroni emphasized.
Figueiredo reinforced: “We are in a 'sea of opportunities with waves.' There may be more short-term volatility, but those who position themselves strategically and buy consistently can reap substantial rewards in the future.”
Baroni advised investors to stick to their purchasing plans despite the uncertain economic outlook for 2025. While it’s impossible to guarantee that FII prices won’t decline further, the current moment is favorable for acquiring shares. However, he cautioned investors to carefully select funds.
“It’s not like going to the supermarket and grabbing any fruit or vegetable off the shelf. It’s about choosing the best opportunities. This due diligence ensures that both fund managers and investors select high-quality investments. In 2025, despite some shocks, I believe the market will emerge stronger,” Baroni stated.
Figueiredo concluded by stating that projections of further Selic rate hikes are likely to create discomfort and instability in the market. “2025 will be a year of harvest! That’s why it’s important to choose carefully and know where to allocate your money. We’ll see how these previously purchased assets will perform,” he said.











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