MSCI introducing Brazilian property index

MSCI Inc. is expanding its range of emerging markets tools by launching a new property index for Brazil.

The new index aims to bring transparency and consistent measurement to the Brazilian property market, said an MSCI press release.

“Private real asset investing has become increasingly mainstream around the world, particularly in emerging markets like Brazil where we have seen increased foreign investment from institutional investors,” said René Veerman, head of real estate product and client coverage at the MSCI. “Offering a relevant benchmark for this otherwise opaque market will provide the vital transparency and consistent measurement that investors need to make better informed investment decisions. We are excited to launch the MSCI Brazil property index and further build upon our mission of bringing more clarity to the overall private real estate industry.”

According to the organization, Brazil’s real estate market is valued at US$62 billion, making it one of the largest of the emerging markets.

“We’ve been investing in real estate in Brazil for well over a decade now and Brazil as a whole for nearly 25 years, but it has been hard to truly assess our performance in the market without consistent and reliable benchmarks,” said Adam Gallistel, managing director and head of Americas real estate with GIC Private Ltd., Singapore’s sovereign wealth fund. “A tool like this will help us evaluate whether or not we actually are generating alpha. Indexes provide transparency into any given market and that transparency inherently attracts capital.”

The MSCI is proposing to include the Brazilian property index in its 2020 MSCI global annual property index, which will be released in 2021. It’s inviting feedback from the real estate investment community by Oct. 31 and will announce its final decision by Nov. 30.