Boston, MA -- (SBWIRE) -- 08/03/2012 -- The Chile Real Estate report examines the Commercial Office, Retail and Industrial segments throughout the country in the context of a historically buoyant market, whose economic growth looks set to cool gradually over the coming years.

With a focus on the principal cities of Santiago and Valdivia, the report covers the rental market performance in terms of rates and yields over the past 18 months and examines how best to maximise returns in the commercial real estate market, while minimising investment risk and exploring the dynamic supply and demand landscape: in spite of new supply, absorption rates are generally holding up across the board. Increasing demand and supply is the general trend across all commercial real estate sub-sectors, and as a result, rents are mostly increasing. 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.

View Full Report Details and Table of Contents

However, even in Chile - where growth over the past 18 months has been strong in the office, retail and industrial sub-sectors - current global economic woes may yet take their toll. Our most recent round of in-country interviews, conducted in December 2011, indicate that 2012 rental growth is likely to be much slower, or to come to a halt altogether. This is unsurprising in the face of a cautious market for international investment and is still a testament to the country's stability that no declines are expected.

In addition, BMI is currently of the view that the Chilean economy is set for a slowdown, as the potential for recession in the eurozone is combining with declining exports and gross fixed capital formation to drag on economic growth. However, we believe that the authorities in Chile are well equipped to prevent any severe downturn.

Key Points:

- We believe that robust credit growth and a positive medium-term outlook for fixed investment will continue to underpin Chile's economic growth over the medium term. While moderating copper prices and a still precarious global macroeconomic outlook will cause the Chilean economy to cool somewhat in 2012, the authorities have plenty of ammunition on the monetary and fiscal front to weather external shocks, informing our above-consensus Chilean real GDP growth forecast of 4.8% for 2012.
- In the construction sector, the strong growth seen over 2011 is expected to moderate in 2012; however, activity will remain robust, accelerating in 2013 and 2014. A combination of residential construction and industrial and infrastructure projects related to the mining sector are fuelling strong construction sector employment and activity, indicating a buoyant project pipeline and industry.

About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Business research reports at Fast Market Research

You may also be interested in these related reports:

- Singapore Real Estate Report Q3 2012
- Philippines Real Estate Report Q3 2012
- South Africa Real Estate Report Q3 2012
- South Korea Real Estate Report Q3 2012
- Croatia Real Estate Report Q3 2012
- Pakistan Real Estate Report Q3 2012
- Bahrain Real Estate Report Q3 2012
- Saudi Arabia Real Estate Report Q3 2012
- India Real Estate Report Q3 2012
- Indonesia Real Estate Report Q3 2012