SECTOR OVERVIEW

Real Estate

2026-03-04

DISCLAIMER: This document is for informational purposes only and does not constitute investment advice. All data sourced from publicly available sources. Not a solicitation to buy or sell securities.

1. Market Overview

Global private real estate AUM has grown to $1.35 trillion, with opportunistic strategies representing approximately $380 billion of total committed capital. The market is undergoing a fundamental reconfiguration driven by AI infrastructure demand, supply chain reshoring, and demographic shifts. After a challenging 2022-2023 period marked by rapid rate increases and transaction volume decline, deal activity recovered meaningfully in H2 2024 and continues to accelerate into 2026.

Market Size & Growth

• Global AUM: $1.35T (all private RE strategies); $380B opportunistic
• Annual Growth Rate: 8.2% CAGR (2020-2025)
• Dry Powder: $420B across all RE strategies; $150B opportunistic
• Institutional Allocation Trend: Increasing — institutional investors moving to 12-15% target allocation to real assets (up from 8-10% in 2020)

Market Dynamics

• Rising institutional allocations to alternatives
• Compression of fee structures
• Increasing focus on ESG/impact investing
• Growing secondary market liquidity

2. Deal Volume & Fundraising

Global RE transaction volume declined 45% in 2022-2023 due to interest rate dislocation. Recovery began in H2 2024, with 2025 volumes approximately 80% of 2021 peak. Data centers and logistics are the most active sectors.

3. Key Players

Leading managers and sponsors in the sector by AUM, track record, and market position.

4. Regional Focus — Chile & LATAM

Latin American real estate presents compelling opportunities driven by nearshoring (Mexico), financial deepening (Colombia, Peru), and pension fund reform creating new allocations to alternatives.

Chile Market

• AFP pension funds increasing alternatives allocation under NCG 461 framework
• Santiago office market recovering post-pandemic with 12% vacancy (down from 16%)
• Industrial/logistics demand growing driven by e-commerce penetration (15% and rising)
• Residential undersupply in Santiago estimated at 600,000+ units
• CMF encouraging real estate fund structures (Fondos de Inversión Inmobiliaria)

LATAM Trends

• Mexico nearshoring boom: industrial vacancy near 0% in key northern markets (Monterrey, Juárez, Tijuana)
• Brazil residential: Minha Casa Minha Vida program driving affordable housing investment
• Colombia: pension reform creating new real estate allocation mandates
• Peru: growing institutional real estate market led by Fibra Prime and local pension funds
• Regional data center demand growing 25%+ annually driven by cloud adoption

5. Regulatory Landscape

Regulatory frameworks across the region are evolving to accommodate institutional real estate investment, with Chile's CMF and NCG 461 providing the most developed framework for pension fund allocations.

Key Regulations

• NCG 461 (Chile): AFP alternative asset investment framework — eligible vehicles include qualified RE funds
• Circular 1,639 (Chile): Concentration limits by AFP fund type (A-E)
• CVM 175 (Brazil): New fund regulation enabling broader RE fund structures
• Mexico REIT law: FIBRAs provide tax-efficient listed RE vehicle
• Colombia Decree 1984: Pension fund investment regime for alternative assets

Regulatory Trends

• Increasing ESG disclosure requirements across all LATAM markets
• Growing acceptance of offshore RE fund structures by pension regulators
• Cross-border fund passporting discussions (Pacific Alliance countries)
• Enhanced anti-money laundering requirements for RE transactions
• Climate risk disclosure becoming mandatory for large RE portfolios

Disclaimer

This document is for informational purposes only and does not constitute investment advice. All data from publicly available sources. Past performance is not indicative of future results.