Latin America poised for real estate surge as developers and buyers show increased interest
Latin America property markets are set to grow as international interest in real estate opportunities intensifies with developers eyeing a number of key countries including Brazil, Argentina and Panama.
Over 100 builders and developers from India are due to visit Brazil and Argentina for a 10 day tour to study local real estate markets to look for opportunities and joint ventures.
They will be visiting Buenos Aires, often referred to as the Paris of South America, Rio de Janeiro and Sao Paulo, according to Suresh Patel, president of developers organisation GIHED.
Meanwhile Panama is experiencing a good real estate recovery as foreign buyers including Americans, Venezuelans, Canadians, Colombians and Europeans show increasing interest.
Although prices have fallen around 10 to 20%, luxury property has not seen a price decline and there is a renewed building frenzy in anticipation of increased sales. ‘There is a lot of construction going on. There are a lot of buildings being built. Every day there are more and more cranes,’ said Jaime Figueroa Navarro, chief executive of Panama All In One.
Panama’s status as the second largest free trade zone in the world attracts a lot of shoppers and one of the biggest developments, a 5,000 acre space on a former US air base is attracting a lot of attention.
Most foreign buyers are looking for apartments that are well located and can be rented out, according to Jianella Torres, a broker at New World Real Estate in Panama City.
The big names are building in Panama as well. The 70 floor sail-shaped Trump Ocean Club, under construction in Panama City’s exclusive Punta Pacifica district, will be the largest and most expensive building ever built in Latin America.
The 1,080 unit’s construction has now reached the 62nd floor and is scheduled to be inaugurated by the end of the year, complete with luxury condos, a five star hotel, six restaurants, a Las Vegas style casino and a private yacht club on the nearby Isla Saboga.
Gulf based developers are also looking to Latin America for opportunities. United Arab Emirates based Elysian International has bought a resort in Rio De Janeiro that includes 174 villas, 130 apartments, a five star hotel, lagoon, and river, and has set prices starting from $39,600.
‘We have been keeping our eye on Brazil as an emerging market for some years now. Brazil’s stock market was up by 83% last year alone which is a clear indicator of the strength of the economy and the resulting positive growth of the real estate market,’ said chief executive Masood Naseeb.
‘We are predicting a 1000 to 7000% appreciation on land in the region particularly in the coastal areas, a percentage that no other country in the world can predict. Investment opportunities in the region are highly in demand as investors and developers see the huge potential for profit, and we are excited to be involved in this,’ he added.