Funds Still Hold a Small Share of Physical Real Estate, but FIIs Already Move R$177 Billion on B3

São Paulo is home to the country’s largest corporate office hub, with roughly 9 million square meters of space. According to data from SiiLA, only 16.43% of these buildings are owned by FIIs—equivalent to 148 assets out of 901 classified as Class A+, A, or B.

The logistics segment shows a similar pattern. Among the 517 tracked logistics developments across Brazil—totaling over 28 million square meters—just 19% are held by investment funds.

The use of real estate as an income-generating asset predates the creation of FIIs. However, the introduction of this vehicle helped democratize and professionalize the market—a trend that is evident in the sharp rise in the number of investors in recent years.

According to B3’s monthly bulletin, the number of FII investors has reached 2.5 million, with individuals making up 74.3% of that base. Institutional investors account for 19.9%, foreign investors for 4.4%, and other profiles for 1.4%.

Additionally, the financial volume under custody in real estate funds has reached R$177 billion—highlighting the growing importance of this asset class in portfolio allocation.

The professionalization and institutionalization of income-generating real estate is also advancing across Latin America. In Mexico, approximately 20% of the office and industrial property market is already owned by FIBRAs, the local equivalent of Brazilian FIIs.

These vehicles control more than 22 million square meters of gross leasable area and reached a market capitalization of around US$20 billion in 2024, according to Jacobo Rodríguez of Roga Capital—equivalent to roughly 4% of Mexico’s total real estate market value.