Market Report, "Venezuela Real Estate Report Q3 2011", published

Recently published research from Business Monitor International, "Venezuela Real Estate Report Q3 2011", is now available at Fast Market Research
 
June 16, 2011 - PRLog -- The government's distortive economic policies, nationalisations and a major currency devaluation, as well as double-digit inflation and price controls, poor infrastructure, continuing electrical supply problems and concerns over the country's political future, have severely discouraged real estate investment, especially new construction. Demand for commercial property space has been stagnant at best.

The 100% devaluation of the Venezuelan currency, the bolivar, against the US dollar on January 10 2010 stalled the property market - and there are also rumours of possible further devaluation later in 2011 - though activity had resumed by mid-February. The outcome of the devaluation was a substantial increase in the volume of rentals, but a fall in rentals in US dollar terms of more than 50%. Leases are often renegotiated annually, which has been attributed to the environment of high inflation.

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Full Report Details at
- http://www.fastmr.com/prod/169896_venezuela_real_estate_r...
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President Chavez has signalled his intent to further his government's nationalisation drive, which will continue to undermine private sector business activity. The danger of land and investment expropriations remains serious. The government has nationalised almost 4mn hectares of land over the last 12 years.

Rents in US dollars are expected to remain roughly stable in all monitored cities into 2011. However, rents in local currency are expected to increase, due to the delivery of higher quality and more expensive space over 2011. Rents and nominal capital values have typically risen by 20-30% annually but are set to remain approximately stable over 2011. Absorption is expected to increase in 2011, mainly due to stalling activity in 2010. Vacancy rates are expected to increase. New construction will deliver further office space, as will companies vacating offices in certain business areas, such as capital markets.

As Venezuela continues to battle inflation, economic activity remains somewhat subdued. We believe that the country will rebound from its two-year recession in 2011 and expect real GDP growth to be 1.9% in 2011 and 2.3% in 2012, up from the 1.4% contraction of 2010. While this implies that the economy is beginning to recover from its deep recession, huge structural imbalances will remain. We believe the recovery will be driven in large part by rising oil prices.

Inflation is set to stay elevated at the highest level in South America. We project it will be 29% year-onyear (y-o-y) by end-2011 and 26% at end-2012. Domestic demand remains weak, and the government's business-hostile policies look set to remain entrenched. Furthermore, electricity supply shortages could lead to a major decline in industrial production, potentially leading to another year of recession.

Report Table of Contents:

Executive Summary
SWOT Analysis
- Venezuela Real Estate/Construction SWOT
- Venezuela Economic SWOT
- Venezuela Business Environment SWOT
Real Estate Market Overview
Real Estate Market Analysis
- Table: Venezuela's Real Estate Market - Rentals, 2009 And 2010 (m2/month, US$)
- Table: Venezuela's Real Estate Market - Net Yields, 2010 -2012 (%)
- Table: Venezuela's Real Estate Market - Terms Of Rental Contract/Lease, Mid-2010
Industry Forecast Scenario
- Table: Venezuela's Real Estate Market - Rentals, 2010-2012 (m2/month, US$)
- Table: Forecast Yield, 2008-2015 (%)
- Construction And Infrastructure Outlook
- Table: Venezuela Construction And Infrastructure Industry Data, 2007-2015
- Table: Venezuela Construction And Infrastructure Industry Data, 2012-2020
- Macroeconomic Outlook
- Table: Venezuela - Economic Activity, 2008-2015
Business Environment
- Real Estate/Construction Business Environment Ratings
- Table: Latin America Business Environment Ratings
- Venezuela's RECBER
- Project Finance Ratings: Outlook For Americas
- Table: Design And Construction Ratings
- Table: Commissioning And Operating Ratings
- Overall Project Finance Rating
- Table: Overall Project Finance Rating
- Venezuela's Business Environment
- Table: BMI Business And Operation Risk Ratings
- Table: BMI Legal Framework Rating
- Table: Labour Force Quality
- Table: Annual FDI Inflows Into Latin America, 2006-2008
- Table: Top Export Destinations, 2003-2009 (US$mn)
- Table: Trade And Investment Ratings
Competitive Landscape
Company Profiles
- Oriente Entidad de Inversion Colectiva de Inmobiliaria CA
- Otepi
- Tecnoconsult
- Vepica
BMI Methodology
- How We Generate Our Industry Forecasts
- Construction Industry
- Bank Lending
- Real Estate/Construction Business Environment Rating
- Table: Weighting Of Indicators
- Project Finance Ratings Indicators
- Table: Design And Construction Phase
- Table: Commissioning And Operating Phase - Commercial Construction
- Table: Commissioning And Operating Phase - Energy And Utilities
- Table: Commissioning And Operating Phase - Transport
- Sources

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at http://www.fastmr.com/catalog/publishers.aspx?pubid=1010

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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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.
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