Private equity real estate funds: 2025 trends in Latin American markets

Authored by FlexFunds
fondos de capital privado inmobiliario tendencias 2025
fondos de capital privado inmobiliario tendencias 2025
  • This article explores the main real estate market trends for 2025, considering the evolving situation in Latin America.
  • The information is primarily aimed at private equity real estate fund managers.
  • At FlexFunds, we securitize assets to issue exchange-listed products (ETPs) that enhance investment strategy diversification and liquidity. For more information, feel free to contact our team of experts. 

The real estate sector in Latin America is expanding rapidly. In fact, according to 6W Research, revenues in the sector are expected to grow at a compound annual rate of 9.8% from 2025 to 2031. As a result, more and more private equity real estate funds are looking to finance projects. These projects should align with the key trends emerging in 2025:

Sustainable projects

The construction of residential and commercial real estate requires a massive amount of resources. Therefore, the industry is increasingly focusing on sustainability to minimize environmental impact.

There are numerous examples of sustainable construction products, but some of the most notable include thermal insulation systems that improve energy efficiency, LED lighting, energy-saving appliances, and passive design strategies that maximize natural light.

This means that private equity real estate funds can attract new generations of investors who prioritize environmental responsibility—while still generating revenue and profits.

Multifunctional spaces

The widespread adoption of remote work, accelerated by the COVID-19 pandemic in 2020, has led real estate developers to focus on building multifunctional spaces—supported by private equity real estate funds.

These spaces include:

  • Work areas with WiFi connectivity.
  • Entertainment and relaxation zones.
  • Meeting rooms for discussions with clients and suppliers.

These properties enable freelancers and businesses with remote employees to operate more comfortably and efficiently.

According to a study by Steelcase, 75% of companies that redesigned their offices to incorporate multifunctional layouts reported improvements in their ability to attract and develop talent. 

Affordable housing

As reflected in data from the World Bank Group, Latin America’s economy has been stagnant for several years and faces ongoing instability. Consequently, many citizens struggle to increase their purchasing power consistently, making affordable housing a lasting trend in the region.

These homes are relatively small and built with cost-effective materials that prioritize functionality over luxury or aesthetics. Additionally, they are energy-efficient, resulting in long-term savings.

“These homes are highly efficient, and when you compare the cost of usage and maintenance over the years, the savings ratio is 5 to 1—meaning that utility costs are five times lower than those of a conventional home,” explains Octavio Roca, an architect at CAS4.

Digitalization and technology

Private equity real estate funds—or their specialized technology divisions—are also increasingly interested in the digital transformation of real estate in Latin America.

The adoption of big data analytics platforms, 3D virtual tours, interior and exterior design software, and blockchain-based contract management is empowering property owners and tenants to make more informed rental and purchasing decisions.

For this reason, the real estate software market is projected to surpass $15 billion by 2030, creating investment opportunities for private equity funds.

The role of securitization

Fortunately, private equity real estate funds looking to enter the Latin American real estate market can mitigate illiquidity risks. More importantly, they can reach a broader investor base through asset securitization.

This process, carried out by companies like FlexFunds, converts a pool of assets—such as private equity funds—into bankable assets. Additionally, these securities receive ISIN/CUSIP codes, making them tradable through conventional brokerage accounts.

At FlexFunds, we partner with internationally recognized providers, including Interactive Brokers, Bank of New York, Bloomberg and Morningstar, among others.

We also offer a comprehensive service package, including:

  • Stock exchange listing.
  • Fund accounting.
  • Back-office services.
  • Net Asset Value (NAV) calculation.
  • Corporate administration services.

To learn more about FlexFunds’ ETPs and asset securitization program, feel free to contact our team of specialists. We’ll be happy to assist you!

Sources:

https:/www.6wresearch.com/industry-report/latin-america-real-estate-market-2021-2027

https:/brainsre.news/teo-manzano-steelcase-oficina-lenguaje-organizacion/

https:/data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=ZJ

https:/www.maximizemarketresearch.com/market-report/global-real-estate-software-market/24821/

https:/www.lanacion.com.ar/propiedades/casas-y-departamentos/las-casas-que-le-ganan-a-la-inflacion-y-al-aumento-del-costo-de-construccion-precios-modelos-y-nid12032024

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The purpose of content of the above article, blog, or post is only informational, and it is not intended to provide any sort of investment advice, as an offer of solicitation to buy, sell, or hold, or as recommendation, endorsement of any security, investment, fund and / or company. The content and information provided in the above article, blog, or post does not constitute financial, trading, or investment advice of any type. Neither FlexFunds ETP nor FlexFunds Ltd. is a U.S. registered broker-dealer, or an investment adviser registered with the U.S. Securities and Exchange Commission. Our entities do not raise capital for clients or the Issuers. We do not solicit any specific products, nor offer investment advice or make investment recommendations, nor do we offer tax, legal, financial advice or otherwise. Perform your own due diligence and consult a financial advisor prior to making any investment decision.

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We provide our services under the Global Note Programs through several entities that perform different activities. Among these entities are FlexFunds ETP LLC which acts as Calculation Agent, and FlexFunds Ltd, which acts as the Program Coordinator. Before making a decision to invest in the Global Note Programs, you should consider the following:

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  2. Coordinated Activities. FlexFunds ETP and FlexFunds Ltd act as coordinators of the different entities participating in the Global Note Programs. However, each of the entities is responsible for its own duties and activities in the process.
  3. Not Broker-Dealer or Investment Adviser. Neither FlexFunds ETP nor FlexFunds Ltd. is a U.S. registered broker-dealer or an investment adviser registered with the U.S. Securities and Exchange Commission. Our entities do not raise capital for clients or the Issuers. We do not solicit any specific products, nor offer investment advice or make investment recommendations, nor do we offer tax, legal, financial advice or otherwise.

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Welcome to FlexFunds

We provide our services under the Global Note Programs through several entities that perform different activities. Among these entities are FlexFunds ETP LLC which acts as Calculation Agent, and FlexFunds Ltd, which acts as the Program Coordinator. Before making a decision to invest in the Global Note Programs, you should consider the following:

1. Independent entities.FlexFunds ETP and FlexFunds Ltd. are not managers of the special purpose vehicles, collectively, responsible for the issuance of Notes under the Global Note Programs.

2. Coordinated Activities.FlexFunds ETP and FlexFunds Ltd act as coordinators of the different entities participating in the Global Note Programs. However, each of the entities is responsible for its own duties and activities in the process.

3. Not Broker-Dealer or Investment Adviser.Neither FlexFunds ETP nor FlexFunds Ltd. is a U.S. registered broker-dealer or an investment adviser registered with the U.S. Securities and Exchange Commission. Our entities do not raise capital for clients or the Issuers. We do not solicit any specific products, nor offer investment advice or make investment recommendations, nor do we offer tax, legal, financial advice or otherwise.

FlexFunds ETP may collect data about your computer or device, including, where available, your IP address, operating system and browser type, for system administration and other similar purposes.