Venezuela Real Estate Report Q2 2011

Date: March 22, 2011
Pages: 53
US$ 1,295.00
Report type: Strategic Report
Delivery: E-mail Delivery (PDF), Download
ID: VDB75763E16EN

Download PDF Leaflet

Includes 3 FREE quarterly updates

We have revised our real GDP growth forecasts for Venezuela, now projecting 1.9% in 2011 and 2.3% in 2012 (from 3.2% and 2.8% respectively), up from an estimated contraction of 2.0% in 2010. While we are still forecasting steady real GDP growth in the medium term, we caution that structural imbalances in the economy are only likely to deepen as there is little to suggest that President Hugo Chávez's distortive policy mix will let up any time soon.

In spite of this positive news, monetisation of government spending continues to fuel inflation and inflation expectations. This continues to influence protagonists’ behaviour in Venezuela’s real estate markets. Rents and nominal capital values have typically risen by 20-30% annually but are set to remain approximately stable over the coming year. Leases often run for no more than one year and tenants often attempt to benefit from the stability in capital values by buying the properties that they are renting. It is hard to envisage that there will be substantial capital growth given an overall poor business environment. Short-term problems such as the lack of hydro-electric power are also having an adverse impact on demand for commercial property, although there are signs that the power shortage could be abating.

We are expecting rents to remain roughly stable in all monitored cities into 2011. However, in Venezuela’s inflationary economic environment, we could see some changes tracking the rate of inflation. Our latest figures indicate that on the whole, yields made slight to moderate gains in 2010 relative to 2009. In most countries, this would clearly be consistent with higher rents and/or lower capital values. In an economy that is as distorted by structural inflation as is Venezuela’s, the reported changes are consistent with our view that yields have been fairly stable. For the city for which we have the firmest data, Caracas, we are forecasting yields to remain stable at 6-8% for 2011.

Our sources in Venezuela have confirmed that the few new commercial real estate projects under way in Caracas and elsewhere have been put on hold.
Executive Summary
SWOT Analysis
Venezuela Real Estate/Construction SWOT
Venezuela Economic SWOT
Venezuela Business Environment SWOT
Real Estate Market Overview
  Table: Venezuela’s Real Estate Market – Rentals, 2009 And 2010 (m?/month, US$)
  Table: Venezuela’s Real Estate Market – Net Yields, 2010 And 2011 (%)
  Table: Venezuela’s Real Estate Market – Terms Of Rental Contract/Lease, Mid-2010
Industry Forecast Scenario
  Table: Venezuela’s Real Estate Market – Rentals, 2010-2012 (m?/month, US$)
  Table: Forecast Yield, 2008-2015 (%)
Construction And Infrastructure Outlook
  Table: Venezuela Construction And Infrastructure Industry Data, 2007-2015
  Table: Venezuela Construction And Infrastructure Industry Data, 2012-2020
Macroeconomic Outlook
  Table: Venezuela – Economic Activity
Business Environment
Real Estate/Construction Business Environment Ratings
  Table: Latin America Business Environment Ratings
Venezuela’s RECBER
Project Finance Ratings: Outlook For Americas
  Table: Design And Construction Rating
  Table: Commissioning And Operating Rating
  Table: Overall Project Finance Rating
Venezuela’s Business Environment
  Table: BMI Business And Operation Risk Ratings
  Table: BMI Legal Framework Rating
  Table: Labour Force Quality
  Table: Annual FDI Inflows Into Latin America, 2006-2008
  Table: Venezuela’s Top Export Destinations, 2001-2008 (US$mn)
  Table: Trade And Investment Ratings
Company Monitor
Oriente Entidad de Inversion Colectiva de Inmobiliaria CA
BMI Methodology
How We Generate Our Industry Forecasts
Construction Industry
Bank Lending
Real Estate/Construction Business Environment Rating
  Table: Weighting Of Indicators
Project Finance Ratings Indicators
  Table: Design And Construction Phase
  Table: Commissioning And Operating Phase – Commercial Construction
  Table: Commissioning And Operating Phase – Energy And Utilities
  Table: Commissioning And Operating Phase – Transport
Sources 53
Skip to top

Venezuela Pharmaceuticals and Healthcare Report Q1 2016 US$ 1,295.00 Dec, 2015 · 100 pages
Venezuela Real Estate Report Q3 2014 US$ 1,295.00 Jul, 2014 · 55 pages
Venezuela Real Estate Report Q4 2014 US$ 1,295.00 Oct, 2014 · 62 pages
Poland Real Estate Report Q4 2014 US$ 1,295.00 Oct, 2014 · 68 pages
Russia Real Estate Report Q4 2014 US$ 1,295.00 Sep, 2014 · 71 pages

Ask Your Question

Venezuela Real Estate Report Q2 2011
Company name*:
Contact person*:
Request invoice
Your enquiry:
Please click on a Check Box below to confirm you are not a robot: