Chile Real Estate Report Q2 2014
Mar 28, 2014 - Business Monitor International - 59 pages
Abstract Table of Contents Request Details Related
Chile has long been one of the jewels in the South American crown in terms of a dynamic economy, abundance of resources and consistent growth. These strong fundamentals and a resilient leasing market make Chile a strong and dependable performer in the commercial real estate sector.

Lead indicators suggest that construction and pipeline growth is expected to continue at a strong rate. However, given the growth rates in 2013, base effects will likely result in a lower growth figure over 2014, as we anticipate that the rental market will remain flat across all sub-sectors.

In spite of new supply, absorption rates are generally holding up across the board, with record amounts of office space set to come online over the next year. In fact, an anticipated broader slowdown in pipeline activity in the medium term is good for the leasing market - particularly in the office and retail sub sectors - as new supply decreases and demand remains relatively buoyant, the competition for prime space in prime locations may well boost rental rates in the medium term. Nevertheless, abundant demand and supply is the general trend across all commercial real estate sub-sectors, and as a result, the commercial real estate market is expected to continue to blossom. The country's status as Latin America's most prosperous region has helped it retain stability and caused it to become a target destination for people looking to enter into a more predictable market than the eurozone in particular.

We believe population expansions in smaller urban areas will drive retail real estate expansions in these regions. This, in conjunction with over-saturation across all commercial real estate segments in Santiago, will encourage a corresponding increase in office and industrial real estate in these areas. We believe that rents will increase in these areas in the short term until new supply comes online. Meanwhile, we expect Santiago's rents and yields to begin to decline over the longer term as new space comes online in the city and companies move to other urban areas to seek out new markets.

Recent developent:
  • New developments include the US$36mn, 29,000m2 Arauco Quilicura in Santiago, and strip centres throughout the country in partnership with AURUS, the Chilean asset manager. Parque Arauco will have a 51% stake in the projects, while AURUS will co-invest 49%.
  • Falabella previously announced plans to invest US$1.74bn in Latin America between 2010 and 2012 (US $492mn in 2010, US$620mn in 2011 and US$632mn in 2012), but has upgraded its growth plans and aims to invest US$3.51bn between 2011 and 2015, in 215 new stores and 16 new shopping centres.
  • The US$75mn World Green Center office block will be constructed by the Chilean investment firm Aurus and the Ciudad Empresarial commercial real estate complex company, with six floors and floor plans up to 3,600m2.

Order This Report

Once you’ve selected your preferred license option, hit ‘order now’ to complete the checkout process using any major credit card, check or wire/bank transfer.
MC, Visa, AMEX, Diners, Discovery, JCB

The Fast Market Research Advantage
Only the Best
All of our research is sourced from the most trusted and established global analysts and consultancies

Client Focused
From start-ups to multinationals, we focus on providing the right research to our diverse client base

Shop Securely
Our US-based customer service team and eCommerce systems adhere to highest data security standards

Industry-leading Customer Support
Individualized assistance from our expert staff is never more than an email or phone call away

About the Publisher
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 Daily Alerts, monthly regional Insights, and in-depth quarterly Country Forecast Reports.