Real Estate

Real Estate:The real sector of commercial real estate Chile will continue to receive due to lack of supply compared with demand and with a very favorable overall environment for business. The reconstruction after the devastating earthquake that occurred in late February 2010, will enhance real economic growth, both in 2010 and 2010. In May 2010, we evaluated the situation we were told that an earthquake will contribute little demand for commercial real estate. When we interviewed them a second time this year in July, our sources in Valdivia has told us that rental rates in this city, especially in trade and office sectors – has increased dramatically.
While economic growth in general could be held in the future mitigation exports to China, we do not see this as an impact on any of the three main branches. It seems that Real heroes real estate market have been carefully balance supply and demand in the three branches in Santiago and Valdivia. Vacancy Santiago industrial property is approximately 12%. For office buildings in the capital, the vacancy rate is very low. In a survey in mid-2010, our country sources reported that they are looking for rents to rise by 15-20% in all directions in 2011.
Currently, we accept the view that the yield will remain broadly unchanged for 2011 and 2012. We are looking for any changes in rent (for example, is likely to further increase), which must meet the growth in prices and capital values. At some point, though, prices should rise in response to the tightness in the market, a steady increase in rent and broadly favorable macroeconomic prospects. We expect that for two years before the end of 2014, the yield will drop by end-2009 level as capital values increase ahead of the lease.
Interviews with our sources in the country, were held in late January and early February 2010.
Main characteristics of this report
This latest release of a new series of industry reports published by BMI, aimed at identifying the dynamics of key real estate sectors in 44 countries around the world, some of which have been developed and some of them in any sense, developing markets. And again the questions that we aim to answer for each country are as follows: What are the main issues that will be important for the participants and real estate development in the country, and in the long and short term? What are the main difficulties they face? What are the basic ideas, that one attains when comparing the real estate sector in the country with its counterparts in other countries?
In the 3 rd quarter, we introduced a very significant improvement in the new reports. We have included data and qualitative observations provided to us by commercial real estate agents working in the countries we survey. The result is a much clearer picture of the relationship between supply and demand in each of the three major sectors – office, retail and industrial. We have also introduced a new approach to forecasting rental yields, which is discussed in the methodology sector of this report.
In the 4 th quarter, we have included a lot of new data on rents and yields in 2010. We got this information in the form of a new round of interviews with our sources in the country in mid-2010. In some cases, the latest information from our sources, has forced us to make significant changes to our forecasts for 2011-2014. We asked our sources indicate that the increase in rents, probably in 2011. We explain their answers in the forecast scenarios.