Latin Business Chronicle asks leading experts about Latin America's real estate outlook in 2009.
BY CHRONICLE STAFF
What is the outlook in general for real estate in Latin America this year? To what degree has the growing credit crisis affected the sector? To what degree will it affect the sector the rest of the year? What is the outlook for individual real estate markets like Brazil, Mexico, Panama and others?
Latin Business Chronicle asked two leading experts: David L. Berger, managing director for Latin America and the Caribbean for NAI Global, and Edward de Valle, President of AMG Worldwide.
Latin Business Chronicle: How do you view the outlook in general for real estate in Latin America this year?
De Valle: Good! I think that the outlook for Latin America will be good due to the fact that these economies are much more cash-based and less dependent on credit than most countries around the world. Additionally, real estate in this region is far more inexpensive for beachfront, jungle, and mountain living when compared to other global destinations. Remember that Latin American countries have been in economic turmoil since the beginning of time, so this economic slump is just another cold for them versus the flu we are feeling in the United States.
Berger: It is still a bit too early to tell how deep the economic slowdown will affect Latin America. I believe that we are still early in the cycle for Latin America and Caribbean; the United States and Europe lead Latin America by several months. However, overall real estate transaction volume will continue to decline and property values will decrease. As yields decompress in other major foreign markets to compete for capital, Latin America and Caribbean will need to remain competitive by...
Keywords: Argentina, Bahamas, Bolivia, Central America, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Mexico, Nicaragua, Peru, Uruguay, Venezuela