Marktbericht Lateinamerika April 2011

The favorable economic environment in Latin America is supporting an
increase in real estate development and transaction activity.and weaknesses of each country.

Executive Summary

• Property professionals in the region are optimistic that market fundamentals will improve in the second quarter.
  
• The evolving sophistication of Latin America’s capital markets has led
  to new sources of funding for real estate. For example, Mexico’s first
  REIT made its debut on the local stock exchange in March, raising
  US$300 million.
  
• Stronger absorption levels have reduced industrial vacancies in Mexico
  and Brazil. Demand for space is expected to pick up even more as
  companies expand their operations to meet global demand.
  
• South America’s middle-class consumer boom is driving demand for
  retail space, leading to construction of new shopping centers. Mall
  developers are moving into smaller cities to gain access to new
  markets.
  
• Bank credit for housing is continuing its steady upward trend, which is
  fueling growth in the middle-income segment. Meanwhile, government
  support for low-income housing remains strong. In Brazil, housing
  prices are rising rapidly due to vigorous demand and higher inflation.