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Latin America Real Estate enjoys continuous growth |
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Written by Administrator
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Monday, 15 January 2007 |
Growing political tensions in some countries did not stop the real estate sector in Latin America to gain strength.
According to Rogerio Basso, an analyst for Ernst & Young’s real estate advisory service, the region’s fundamentals were not affected by the slowdown in the U.S. real estate and remain to be sound.
“The baby boomer generation will continue to retire in large numbers in the next coming years and they will have a substantial amount of disposable income available to them. Many of these individual are looking for opportunities to purchase second homes that they can use either for vacation or retirement purposes, and as such Latin America will continue to be an attractive proposition,” said Basso.
Basso states that he foresees a reduced rate of appreciation in second home prices in the coming year, yet it would be better than U.S. which could attract baby boomers to make investments in second homes in Latin America. The anticipated decline in sales pace will not last long as only the upper-end market will be affected, he said.
Title insurance companies are also seeing growth in Latin America. According to Turalu Brady Murdock, vice president for US-based First American Title Insurance Company, the company was able to double the issuance of title insurance policies in 2006 and insured amount was three times more than 2005 figures.
Central America, particularly Panama, Guatemala and Nicaragua, has been seen with heightened real estate activity. Nicaragua and Panama are considered the two fastest growing markets in Latin America outside of Mexico.
According to Basso, the Dominican Republic is a place to watch as several projects are being developed by upscale lodging brands, Westin Rokoki and Cap Cana.
Spanish and Portuguese developers are seen to have keen interest on developing mixed-used projects in the northern coast of Brazil targeting on a European-based buyer.
It is unfortunate, however, for countries like Ecuador and Bolivia which do not have convenient access to the United States because they will surely be affected by the slowdown in the U.S.
Ma. Roma C. Agsalud
Miami Real Estate
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