As the global economic situation remains somewhat unsettled, a new report says that many areas in Latin America offer strong growth opportunities in commercial real estate.
According to CB Richard Ellis, with the exception of Mexico, most Latin American countries are very positive, with significant economic growth and consumer spending increasing demand for office and retail space.
"Latin America offers significant advantages for both occupiers and investors, including a relatively young population, solid economic growth and a growing affluent consumer base," said Victor Lopez-Beltran, CBRE's director of Latin America research. "In particular, the growth in investment opportunities continues to evolve at a rapid pace given the land reform and privatization efforts underway over the last three decades."
The report said both multi-national and domestic companies will help fuel growth, with strong cross-border capital flows. New developments are also in high demand, as companies work to upgrade their existing spaces.
Another major reason for higher demand is the upcoming World Cup and Olympic Games, which will be held in Brazil. Growth there has been so rapid some believe the country's economy may be growing too quickly in terms of inflation.