Put simply, these bonds track inflation while also paying an additional fixed interest rate. In practice, this means investors are guaranteed to preserve their purchasing power—as returns grow alongside the IPCA inflation index—while also receiving an extra yield defined at the time of purchase. 

Backed by the National Treasury, they are considered low-risk investments. There are two main versions: Tesouro IPCA+, which pays everything at maturity, and Tesouro IPCA+ with semiannual interest payments, which deposits returns periodically into the investor’s account. 

The year 2021 went down as one of the most challenging in Brazil’s recent economic history. With inflation climbing to 10.06%—driven by currency depreciation, rising commodity prices, and pandemic-related supply chain disruptions—NTN-B delivered a return of 10.74%. 

It was the peak of the inflation-linked bond, serving as a true safe haven for conservative investors. The gain nearly doubled the average cap rate of São Paulo’s prime office market, which stood at 5.60%, reflecting a sector still weakened by remote work and record-high vacancy. 

With inflation easing and the Selic rate at elevated levels, NTN-B returns lost steam, falling to 5.90% in 2022 and 4.68% in 2023. What seemed like waning appeal in fixed income created room for the relative recovery of the property market. 

During the same period, office cap rates responded: after holding steady in 2022 (5.65%), they rose to 7.63% in 2023. This jump can be interpreted in two ways: on one hand, it reflects higher return requirements from investors amid persistent vacancy risk. On the other, it suggests that quality real estate assets were becoming a competitive alternative to fixed income, regaining some of the attractiveness lost at the height of the pandemic. 

These numbers highlight a clear complementarity: 

In times of inflation shocks, such as in 2021, NTN-B outperforms, protecting wealth and delivering strong nominal gains. 

In cycles of controlled inflation and stable interest rates, the office market tends to outperform relatively, offering more attractive risk premiums. 

For sophisticated investors, the message is clear: diversifying between inflation-linked fixed income and real estate is not just prudence—it is a way to capture returns across different phases of the economic cycle.