Marktbericht Lateinamerika Jan10

The shockwaves of the global financial crisis impacted Latin America on several levels in 2009.

Executive Summary

• Latin America is expected to post solid GDP growth in 2010, fueled by consumer demand from a growing middle class. Property markets have begun to thaw, although a full recovery is not expected until late in the year.
  
• Capital markets in Latin America rallied at the end of 2009, and the good performance is expected to continue. Strong performance by homebuilders and retailers boosted Latin American stock markets. Corporate debt issuance made a comeback after drying up earlier in the year.
  
• Retail sales posted large increases in some countries, especially among companies focused on lower-income consumers. Demand for retail space is rising in some countries, although in Mexico shopping centers continue to have trouble attracting smaller tenants.
  
• Demand for office space in Latin America is mixed. Occupancy levels have risen in Brazil and Chile, while dropping in Mexico. Leasing activity is growing for industrial properties in Mexico.
  
• Homebuilders targeting the low-income segment are building units at a rapid clip to take advantage of the demand generated by low-cost mortgage programs. Several homebuilders in Brazil have issued equity and debt to finance new expansion plans.