Market Report, "Chile Real Estate Report Q1 2011", published

Dec. 10, 2010 - PRLog -- Chile's commercial Real Estate sector will continue to benefit from the lack of supply relative to demand and from the very favourable overall environment for business. Reconstruction following the devastating earthquake that took place in late February 2010, will contribute to higher real economic growth both in 2010 and 2010. In May 2010, we assessed the situation we said that the earthquake would contribute marginally to demand for commercial Real Estate. When we interviewed them for the second time in 2010 in July, our sources in Valdivia told us that rental rates in that city - particularly in the retail and office sub-sectors - had increased dramatically already.

Although overall economic growth could be held back in the future by a softening of exports to China, we do not see this as having an impact on any of the three main sub-sectors.

It appears that Real Estate market protagonists have been careful to balance supply and demand in the three sub-sectors in Santiago and in Valdivia. The vacancy rate for Santiago industrial property is around 12%. For office space in the capital, the vacancy rate is miniscule. When interviewed in the middle of 2010, our in-country sources indicated that they are looking for rental rates to rise by 15-20% across the board in 2011.

For the time being, we are taking the view that yields will remain broadly unchanged through 2011 and 2012. We are looking for any changes in rents (ie in all probability, further increases) to be met by rises in prices and capital values. At some stage though, prices should rise in response to the tightness of the market, the steady increases in rentals and a broadly favourable macro-economic outlook. We expect that, over the two years to the end of 2015, yields will fall back to end-2009 levels as capital values increase ahead of rentals.

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Report Table of Contents:

Executive Summary
SWOT Analysis
- Chile Real Estate/ Construction SWOT
- Chile Economic SWOT
- Chile Business Environment SWOT
Regional Real Estate Overview
- Table: Latin American Office Markets At A Glance - Rental Costs, 2009-2011 (US$ per m2 per month)
- Table: Latin American Retail Markets At A Glance - Rental Costs, 2009-2011 (US$ per m2 per month)
- Table: Latin American Industrial Markets At A Glance - Rental Costs, 2009-2011 (US$ per m2 per month)
Real Estate Market Overview
- Table: Chile's Real Estate Market - Rentals, 2008 And 2009 (mSq/month, US$)
- Table: Chile's Real Estate Market - Net Yield, 2008 And 2009 (%)
- Table: Chile's Real Estate Market - Terms Of Contract/Lease
- Table: Santiago's Real Estate Market - Available And Vacant Space (mSq)
Forecast Scenario
- Table: Chile's Real Estate Markets - Rentals, 2009-2010 (mSq/month, US$)
- Table: Chile's Real Estate Markets - Net Yield, 2009-2015 (%)
- Construction Industry Outlook
- Table: Construction Industry, Historical Data And Forecasts
- Macroeconomic Outlook
- Table: Chile - Economic Activity, 2007-2015
Business Environment
- Table: Latin America Business Environment Ratings
- Chile's RECBER
- Chile's Business Environment
- Table: BMI Business And Operation Risk Ratings
- Table: BMI Legal Framework Rating
- Table: Labour Force Quality
- Table: Foreign Direct Investment Inflows Into Latin America, 2006-2008
- Table: Top Export Destinations, 2000-2008 (US$mn)
- Table: Trade And Investment Ratings
Company Monitor
- Abertis
- BESALCO SA
- Grupo ACS
- Inversiones Aconcagua SA
- Paz Froimovich SA
- Socovesa SA
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

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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.