In-depth Analysis of Latin America Real Estate Investment Market Trends and Share 2025

Latin America Real Estate Investment Market Forecast by 2033

Market Size in 2024: USD 687.70 Billion

Market Forecast in 2033: USD 1,278.80 Billion

Market Growth Rate 2025-2033: 6.40%

The Latin America real estate investment market reached USD 687.70 Billion in 2024 and is projected to grow significantly, reaching USD 1,278.80 Billion by 2033. The market is expected to expand at a CAGR of 6.40% during 2025-2033, supported by rapid urbanization, expanding middle-class populations, foreign direct investments, and infrastructure development initiatives across the region.

Growth Drivers of the Latin America Real Estate Investment Market

Expanding Middle-Class Population and Housing Demand

A growing middle class in Latin America creates demand for residential and commercial real estate. Household incomes rise. Families feel greater financial confidence. These changes enable more Latin Americans to buy homes within the affordable and mid-range housing sectors. Governments provide incentives to increase home-ownership and ease borrowing. The demographic wave has driven up residential investment. The wave increased demand for retail and entertainment spaces. The middle classes seek amenities for upgraded lifestyles. This has attracted the attention of investors looking to cater to the growing consumer base.

Growth in Industrial Real Estate and E-Commerce Logistics

Across Latin America, demand has grown for warehouses, distribution centers and logistics facilities as e-commerce continues to grow in the region. Demand is expected to increase further along with the growth of nearshoring, as companies seek to move closer to their markets. For example, Thor Urbana has been an active buyer of industrial properties in Mexico, acquiring nine projects in July 2024, with over 1.6 billion square feet in total. Foreign direct investment in Mexico also increased by 27% in 2023. The continued growth of industrial property is anticipated, as a result of automation, sustainability measures, and logistics companies providing the last mile delivery.

Infrastructure Development and Public-Private Partnerships

Infrastructure is a major reason for real estate investment in Latin America. Increased government spending on roads, utilities and communications networks are used to improve social conditions and attract foreign investment while public-private partnerships (PPPs) are increasingly common in the financing and construction of major transportation infrastructure including roads, airports and public transport systems. They result in better connectivity and property values and additional investment in previously underdeveloped areas. Infrastructure improvements increase the value of developing real estate and increase investor confidence in the long-term development potential of an area.

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Latin America Real Estate Investment Market Segmentation

Analysis by Property Type

• Residential Investment

• Commercial Investment

  • Office Space

  • Retail Space

  • Leisure Space

  • Others

• Industrial Investment

  • Manufacturing Plants

  • Warehouse/Distribution

  • Others

• Land Investment

Analysis by Distribution Channel

• Public REIT

• Private REIT

• Private Real Estate Investment

Analysis by Purpose

• Sales

• Rental

Analysis by Country

• Brazil

• Mexico

• Argentina

• Colombia

• Chile

• Peru

• Others

Competitive Landscape

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Latin America Real Estate Investment Market News

• May 2024: Hines expanded its Private Wealth Solutions into Latin America through a partnership with iCapital, offering investors access to a USD 4.14 billion global portfolio.

• May 2024: Patria Investments finalized the transfer of Credit Suisse’s Brazilian real estate funds valued at USD 2.4 billion, strengthening its position as a leading real estate manager in the region.

• Thor Urbana expanded its industrial real estate portfolio in Mexico with nine new properties, reflecting strong demand for logistics infrastructure.

• Governments across Latin America announced new PPP projects to enhance transportation and urban infrastructure, boosting real estate investment opportunities.

• Institutional investors and REITs increased allocations to industrial and residential real estate, recognizing stable yields and long-term growth potential.

Key highlights of the Report:

• Market Performance (2019-2024)

• Market Outlook (2025-2033)

• COVID-19 Impact on the Market

• Porter’s Five Forces Analysis

• Strategic Recommendations

• Historical, Current and Future Market Trends

• Market Drivers and Success Factors

• SWOT Analysis

• Structure of the Market

• Value Chain Analysis

• Comprehensive Mapping of the Competitive Landscape

Note: If you need specific information that is not currently within the scope of the report, we can provide it to you as part of the customization.

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