New market study, "Argentina Real Estate Report Q1 2011", has been published

Fast Market Research recommends "Argentina Real Estate Report Q1 2011" from Business Monitor International, now available
 
Dec. 10, 2010 - PRLog -- There are some countries where commercial real estate protagonists have easy access to the funding that they need and, given the general challenges of doing business in that country, are usually able to match supply of new property with new demand. Argentina is not such a country. One legacy of long-term economic volatility - and an undersized local financial services sector - is that Argentina's developers often face the real possibility that they will bring new projects to the market at precisely the time that demand for new space is turning down.

There are early signs that this is what is occurring across all sub-sectors in each of the three Argentine cities - Buenos Aires, Cordoba and La Plata - for which we gathered data. In early 2010, our in-country sources had a positive story to tell. Rental rates had risen across the board by double-digit amounts. Yields had fallen, as capital values had gained by even more than rents. The commercial real estate sector had been benefiting from the growth in global investors' appetite for emerging markets assets through calendar 2009. Further increases in rents were expected. The only cloud on the horizon was that a number of development projects were under way with the result that supply of new space would be increased during 2010. This was at a time that vacancy rates were well in excess of 10% in most sub-sectors. Our sources reported, for instance, that vacancy rates in the Buenos Aires retail sub-sector were running at around 50%.

By the middle of 2010, a lot of the optimism had gone. The numbers cited to us by our sources indicated that rents and yields had moved sideways. Ominously, our sources suggested that they were not looking for any improvement in rental rates in 2011, either. Worse, this is at a time when the limitations to Argentina's recovery in the wake of the global financial crisis of late 2008 are becoming apparent. Overall investment is too low, while fiscal policy has been (perhaps unsustainably) lax. Exporters have already benefited from the softness of the ARS: conditions in many of the markets into which they are selling appear to be deteriorating. The growth rates, which were the norm prior to 2008, are not going to be regained any time soon.

For the time being, we are looking for general stability in Argentina's Real Estate sector - with yields rising slightly in Buenos Aires, but moving sideways in the other two cities, over the forecast period. However, we note that there is scope for economic conditions to deteriorate - even relative to our forecasts. Further, the market will have to absorb significant supply of new property over the coming three years.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/100647_argentina_real_estate_r...

Report Table of Contents:

Executive Summary
SWOT Analysis
- Argentina Real Estate And Construction SWOT
- Argentina Economic SWOT
- Argentina 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: Argentina's Real Estate Market - Rentals, 2008 And 2009 (mSq/month, US$)
- Table: Argentina's Real Estate Market - Net Yield, 2008 And 2009 (%)
- Table: Argentina's Real Estate Market - Terms Of Contract/Lease
- Table: Argentina's Real Estate Market - Available (mSq) And Vacant Space (%)
Forecast Scenario
- Table: Argentina's Real Estate Markets - Rentals, 2009-2011 (mSq per month, US$)
- Table: Argentina's Real Estate Market - Net Yield, 2009-2015 (%)
- Construction Industry Outlook
- Table: Argentina's Infrastructure Industry Forecast, 2008-2014
- Macroeconomic Outlook
- Table: Argentina - Economic Activity, 2007-2014
Business Environment
- Real Estate/Construction Business Environment Rating
- Table: Latin America Business Environment Ratings
- Argentina's RECBER
- Project Finance Ratings: Outlook For Americas
- Table: Design And Construction Rating
- Table: Commissioning And Operating Rating
- Table: Overall Project Finance Rating
- Argentina'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: Trade And Investment Ratings
Company Monitor
- Genergia
- Grupo ODS/ Creaurban
- IRSA - Inversiones y Representaciones Sociedad Anonima
- Roggio
- Skanska Latin America
- Techint
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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