The capital market has been consolidating itself as an essential alternative to traditional credit in real estate development, in a scenario of high interest rates and depletion of savings resources. For Bruno Gargiolli, director of Real Estate at XP Inc, the strength of this movement lies in the capacity for innovation and customization of financial solutions created for the sector.
“The great beauty of the capital market is the non-standardization. There is no single product, but a variety of options and a different culture, of building tailor-made solutions”, he stated during the Capital Market and Role of Financial Institutions in the Growth of Real Estate Development panel, this Thursday (9) at the event, in São Paulo.
The cost of credit and the advancement of hybrid solutions
With the increase in the Selic rate and the consequent increase in the cost of fundingGargiolli highlighted that the current environment “made the market look for creative alternatives to finance production”. He cited the advancement of hybrid instruments, which transition between debt and equity, such as the “semi-equity” and “preferred equity” models, in addition to the growing role of real estate funds (FIIs) that have acquired shares or stocks in projects.
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“These tools are an attempt not only to expand the works, but to recycle the entrepreneur’s capital”, he explained. According to him, the capital market today is “more prepared to first help with the shortage of funding for construction”, acting in a complementary way to banks.
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CRIs gain space as the main source of funding
Among the instruments that gained prominence, Real Estate Receivables Certificates (CRIs) were identified as one of the most effective solutions for financing works. Gargiolli considered that progress is still uneven among the sector’s links. “CRIs have been the most helpful product, but the capital market still needs to evolve at the end buyer’s end. There is a lack of a long-term solution, with adequate cost and deadline for the consumer”, he stated.
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He highlighted that, historically, the sector did not need to worry about this because “funding was almost a renewable resource through savings”. The transition, therefore, demands time and adaptation — both from developers and financial agents.
The migration to the capital market also imposes new challenges on medium-sized companies, as highlighted by Carla Taynara de Brito Dutra, CEO of MS Empreendimentos. She recalled that access to this type of financing requires professionalization and transparency. “It was necessary to adjust management, establish councils, adopt audits and prove the quality of governance. It is a mandatory path for developers who want to access this funding”, he stated.
According to Carla, the change is especially relevant in regional markets, such as Santa Catarina, where there are a large number of medium-sized developers with liquidity and a low default rate. “Together, they have very great representation and importance for the segment”, he added.
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Regulatory innovation and new registration mechanisms
In the view of Rodrigo Furiato, vice-president of Business at Núclea, the regulatory modernization agenda led by the Central Bank should expand developers’ access to credit and bring more legal security. He highlighted that the registration of real estate receivables and the development of services such as the “dynamic bill” tend to provide more transparency and predictability to operations.
“These measures guarantee the uniqueness and publicity of records, facilitating access to credit and promoting healthy competition among financiers,” said Furiato.
