Financialization of housing via real estate investment funds in Brazilian cities

Financialization is a concept extensively explored in theory, though not always explained empirically. Therefore, this study focused on identifying characteristics and strategies of Real Estate Investment Trusts (reits) advancement in the residential segment within Brazilian metropolises, especially Sao Paulo. It also sought to understand the relationships between the agents involved and their connection to the concept of financialization. We conducted qualitative research to analyze and interpret data on eight reits in the residential segment. The results show a pattern of sophisticated socio-technical arrangements between the financial and real estate sectors and present novel knowledge about reits based on their current strategy in the residential segment. The main conclusions show: (i) a pattern of internal organization that repeats among the trusts studied, (ii) the fact that location plays a central role in the trusts' strategies, and (iii) two diverging marketing discourses, the ideology of transitory housing for the lessee, and the guarantee of ownership and future income for the investor.