"Venezuela Real Estate Report Q4 2014" Published

From: Fast Market Research, Inc.
Published: Mon Nov 24 2014

Uncertainty has become an ongoing theme within the Venezuelan real estate sector. Unfavourable government policies, stubbornly high levels of inflation and exchange rate issues have deterred much needed investment in the sector. The country's economy, however, possesses great potential, which we believe will create attractive opportunities for real estate in the long run.

Venezuela's limited construction pipeline has created a market that is extremely low in supply. This in effect has offset the growing caution amongst potential tenants so that demand remains high for what space that is still available. The government's populist policies continue to create a business environment that is inherently anti-private business and this has encouraged domestic and overseas investors to look elsewhere.

Meanwhile, inflation has climbed so high that the central bank has decided to stop reporting regular statistics. This has artificially inflated rental rates and reduced consumers' purchasing power. The government has imposed a cap on commercial rental rates but this will not solve the underlying problem of high inflation and will detract from further investment in the sector.

Full Report Details at
- http://www.fastmr.com/prod/900789_venezuela_real_estate_report_q4_2014.aspx?afid=301

We anticipate President Nicolás Maduro to continue his government's policy course and therefore expect no improvements in the commercial real estate sector during the short term. Venezuela's economy does, however, hold substantial potential with a rising middle class that is keen to spend on Western-style retail which offers considerable opportunities for this subsector in the long run. Furthermore, the country's oil supply can be utilized as a means to attract greater investment into not only the real estate sector but also the wider economy.

Key BMI Forecasts

* We see no change in office rental rates in 2014 and 2015, with the highest rents continuing to be in the capital, Caracas, at a minimum of USD20/square metres a month and a maximum of USD66.
* We likewise see no change in...

The Venezuela Real Estate Report features Business Monitor International (BMI)'s market assessment and independent forecasts of major construction projects in the residential and commercial markets, plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.

BMI's Venezuela Real Estate Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in Venezuela.

Key Benefits

About Fast Market Research

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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.

You may also be interested in these related reports:

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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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