Investors Like Bricks and Mortar

Stable returns is the main characteristic of real estate funds which in Costa Rica have shown annualized growth of 26% in their net assets.

Monday, May 15, 2017

An article in Nacion.com reports that "... Real estate funds spent $284.2 million on the acquisition of 32 buildings between April 2016 and March 2017. As of March, net assets managed by the seven investment fund management companies (SAFI) amounted to ¢754,255 million, after a year-on-year increase of 26%, according to the Superintendency of Securities (Sugeval)."

Investors' appetites are evident not only in the growth of SAFIs' assets through the purchase of properties, but also in the growing number of registered investors, reaching 8,187, highlighting in March 2016 the registration of 600 new accounts. 

"... Total yields in the last 12 months reached 6.61% (in dollars), only 0.54 percentage points below what was observed a year ago. This profitability is equivalent to the total return obtained by rents and capital gains from real estate.  On the other hand, net yield (also of the last 12 months) is generated only by the leases, and reached 8.53%."

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More on this topic

Real Estate Funds: Poor Performance in 2019

September 2019

In Costa Rica, yields on these investment instruments have been declining since 2017 and even more this year, partly because of the increase in the unemployment rate of real estate.

The prices of real estate investment fund shares on the stock market have fallen significantly in the last year. Economist Adriana Rodríguez, director of the consulting firm Frecuencia Económica, explains what to expect in the medium and short term.

Costa Rica: Real Estate Funds Dynamize Market

January 2019

The continuous acquisition of real estate and the diversification in the type of infrastructure invested, are the reasons for the growth of real estate funds, which monopolize nearly 40% of the industry's assets.

According to data from the General Superintendence of Securities (Sugeval), the proportion of real estate funds concentrated in the market has been growing for years, since in November 2013 they represented 29% of the industry and in the same of 2018 it rose to 41%.

Real Estate Fund Buys Office Center for $127 million

August 2017

In Costa Rica, the investment fund management company Multifondos has announced the acquisition of the corporate center El Cafetal, located in Belén, Heredia.

Elfinancierocr.com reports that "...Multifondos, a subsidiary of the financial group Mercado de Valores, said the amount represents the largest purchase made by a real estate fund in the country and it has been estimated that this will result in the real estate fund industry being valued at $2 billion."

Costa Rica: Investment Funds Update

June 2015

In April 2015 the total assets managed by Costa Rican investment funds amounted to $3,800 million, 8% more than at the end of 2014.

From a report by the National Chamber of Investment of Costa Rica (CAFI):

Investment fund assets grow 8.3% and 7.8% in customers in the first four months of 2015.

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Desarrollo Inmobiliarios 4D

We are a firm dedicated Aldesa Investment Corporation to seize business opportunities in the housing market.
Operates in Costa Rica and Costa Rica
Phone: (506) 2207-8888

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