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Despite the Brazilian real estate market looking set to experience a slow down, investment interest is nevertheless remaining strong.  As an example, in March 2011 the Brazilian Capital Property Fund (‘Fundo dos Fundos de Investimentos Imobiliários da Brazilian Capital’), the first to be created of its kind, captured R$ 114 million (over R$ 14 million more than what was expected) collectively from 2,490 investors.

According to Fabio Nogueira, director of Brazilian Finance Real Estate (BRFE) in an interview with the Exame magazine, such high demand has created an excellent opportunity to form a specific index for property funds – a process of which is already under analysis by the BM&FBovespa (the country’s main stock market).  Commenting to the magazine: ‘after 12 years of the creation of the Brazil’s first property fund, we are ready to further develop the link between the high performing operations of the sector and the capital markets – all within a healthy level of growth.’

Brazilian Capital will form part of a holding along with Brazilian Mortgages, Brazilian Securities and BM Sua Casa – controlled by the BRFE (no date has been confirmed for its creation).   In due course, Nogueira expects that the road will be open for the fund to advance in terms of liquidity and also attract the participation of the largest pension funds.  The index will also enable investors and fund managers to evaluate ongoing performance in a more detailed and secured manner compared to what exists today.