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Student Housing in Brazil: Why Invest?

Real Estate Investment Management Sem categoria

author

Carlos Balthazar Summ

post date

29/01/2024

reading time

4 minutes

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Brazil’s investment fund market for student housing is still in its early stages compared to the international market, where there is a more established culture of leaving the family home, attending college, and living in a university-centered environment.

As a result, investing in this segment, commonly known as student housing or student living, is gaining traction—especially in Brazil, where the market remains underexplored.

In this article, we’ll explore this type of investment fund and why many investors are paying attention to student housing.

What Is an Investment Fund?

Investment funds are composed of various types of assets and are offered in the financial market as a collective investment option, managed by a team of specialists.
These funds can focus on specific asset classes, such as equities, real estate, or fixed income. Each share purchased represents partial ownership of the fund, and investors receive proportional returns based on their investment.
Here, we’ll focus exclusively on real estate investment funds!

What Is Student Housing?

As previously mentioned, this is a real estate segment that remains relatively untapped in Brazil. Common forms of student housing in the country include informal setups such as student republics, small studio apartments, and boarding houses.

In contrast, in the United States, where the student living culture is more prominent, major real estate operators offer investment and development opportunities for this type of property. The U.S. student living market generated over $10 billion in transactions in 2021, involving 269 properties and 167 separate transactions.

These properties can become stable real estate assets with significant potential returns. Demand for this type of housing is high, and the investment is less vulnerable to financial market fluctuations.

How Does Investment in Student Housing Work?

Investment in this segment can be made through funds, companies, or real estate market structures.

Since student housing funds are more prevalent in the U.S., investing in this segment offers greater opportunities for this asset class. This is particularly beneficial for Brazilian investors interested in diversifying their portfolios internationally by incorporating a mix of assets.

CIX Capital’s Approach to Developing Student Housing in Brazil

In Brazil, CIX Capital’s portfolio includes five operational assets. These properties were custom-built in strategic locations near universities with strong market potential. Collectively, the portfolio boasts over 55,000 square meters of constructed area and more than 2,100 rentable beds.

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Diversify Your Real Estate Investment Portfolio

The best way to diversify your real estate portfolio, including investment funds, begins with evaluating the fund manager’s track record and conducting a thorough analysis of the investment opportunity. This includes assessing the expected returns (short and long-term) as well as the risks associated with the project.
It’s essential to rely on experts in the field who can provide strategic guidance, transparency, and realistic assessments of results—whether in Brazil or the U.S.
Contact us to learn more!

author

Carlos Balthazar Summ

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    CIX Capital is an investment by Maiz: maiz.com.br