Until now, only individuals with high purchasing power (and direct access to many developers) and large investment funds had access to invest in it.
Opportunities with a competitive performance profile.
The rates offered by banks are less than 3%, that is, lower than inflation. This means that our money loses value every year that stays in a bank. Something similar happens with fixed income investment funds, which invest in government or corporate bonds.
The Real Estate offers an intermediate alternative. They offer medium and high returns (eg 8-14% in debt instruments and 14-30% in equity instruments, as of today). Also, the risk of real estate is medium to high, if we take into account that these investments generally have a real estate as collateral, as well as the historical volatility of the same.
Real estate has a low correlation with other types of investment, such as bonds or stocks. This means that investments in real estate lower the risk level of the portfolio and add value to the profitability profile, that is, the benefits of diversification are received. Generally, a real estate portfolio can represent between 5 and 30% of a personal portfolio.
Protection against inflation
The value of a real estate asset is derived from the present value of future income. In the vast majority of cases, rental contracts rise according to the inflation rate. As a result, the value of real estate tends to rise at rates equal to or greater than inflation, something that does not always happen with stocks or corporate bonds.