Market Report, "Chile Real Estate Report Q3 2013", published

From: Fast Market Research, Inc.
Published: Thu May 23 2013


Chile has long been one of the jewels in the South American crown in terms of a dynamic economy, abundance of resources and consistent growth. These strong fundamentals and a resilient leasing market make Chile a strong and dependable performer in the commercial real estate sector. Lead indicators suggest that construction and pipeline growth is expected to continue at a strong rate, with industry specific employment ticking up (especially in relation to mining construction jobs) alongside continued growth in residential sales, presenting upside potential to our 2013 forecast. However, given the growth rates in 2012, base effects will likely result in a lower growth figure over the next 12 months, as we anticipate that the rental market will remain flat across all sub-sectors.

With a focus on the principal cities of Santiago and Valdivia, the report covers rental market performance in terms of rates and yields over the past 24 months and examines how best to maximise returns in the commercial real estate market, while minimising investment risk and exploring the dynamic supply and demand landscape: in spite of new supply, absorption rates are generally holding up across the board. In fact, a broader slowdown in pipeline activity spells good news for the leasing market - particularly in the office and retail sub sectors - as new supply decreases and demand remains undampened, the competition for prime space in prime locations may well boost rental rates in the medium term.

Full Report Details at
- http://www.fastmr.com/prod/596811_chile_real_estate_report_q3_2013.aspx?afid=301

Nevertheless, abundant demand and supply is the general trend across all commercial real estate subsectors, and as a result the commercial real estate market is expected to continue to blossom. The country's status as Latin America's most prosperous region has helped it retain stability and caused it to become a target destination for people looking to enter into a more predictable market than the eurozone in particular.

However, even in Chile - where growth over the past two years has been strong in the office, retail and industrial sub-sectors - current global economic woes may yet take their toll. Our most recent round of incountry interviews, conducted in December 2012, indicate that rental growth is likely to be much slower in 2013, or to come to a halt altogether. This is unsurprising in the face of a cautious market for international investment, and it is still a testament to the country's stability that no contraction is expected.

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

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Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001

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