Mexico City, Sao Paulo, Santiago, Lima, Bogota and Panama will attract the largest investments in the real estate sector in Latin America this and the next few years. Why? They are currently the main cities in Latin America considered as engines of trade and commerce, real estate, and investment.
A study called "Latin America Regional Prime Office Report," was conducted by Jones Lang LaSalle (JLL), a financial and professional services company specializing in real estate services and investment management. The independent and diverse cities of Latin America constitute an environment conducive to real estate opportunities, both in large cities and in the fastest growing.
The experts identified six cities that are at the forefront of economic expansion in Latin America: Three "established" cities: Mexico City, Sao Paulo and Santiago; and three "emerging" cities: Lima, Bogotá and Panama.
Real estate in these cities represents a balance between the stability of a large market, and the smaller but rapidly growing shopping centers, which will catapult the demand for office space.
The expectations and problems of each city are diverse. However, the real estate sector in Latin America grows over the years. While massive volumes of construction in the three largest office markets in the region will create over-supply problems in Sao Paulo, Mexico will meet existing demand and in Santiago, the shortage of modern products will be alleviated.
The three smaller office markets that are generating high levels of construction and intensive foreign investment are Lima, Bogotá and Panama.
These markets promise to boost a record of foreign investment and economic growth that will create a multiplier effect of commercial activity throughout Latin America in 2014 and beyond, according to the study.
Regarding the availability rate, Panama is the city that leads the indicator in all of Latin America, and is even positioned as one of the largest in the world, with more than 45%, when the market balance is between 8% and 10%. The area is characterized by a high investment in real estate with capital originated in other countries.
The above article was written and published in Spanish and has been translated into English. Click here to read the original article.