Marktbericht Lateinamerika Oct09

Economic data continue to confirm that the recovery process in Latin America is well underway.

Executive Summary

• Economic data improved throughout the third quarter in Latin America. Key indicators are improving monthly, in some cases returning to pre-crisis levels.
  
• Signs of a recovery restored investor confidence in the region, prompting gains in local currencies and stock indices and a surge in new debt and equity issuances.
  
• Commercial real estate fundamentals are likely to lag the economic recovery. Although retail sales and consumer confidence are rising, it will take many retailers a while to recover from the damage done to sales figures.
  
• Rents in the office sector are under pressure from the delivery of new space and softer demand. A growing number of industrial firms are starting to search for space, but rents remain low and vacancy levels high. Transaction activity remains stalled.
  
• Demand for housing is centered on the low-income housing market, which is boosted by ready financing from government-backed mortgage agencies. As a result, homebuilders have shifted resources to the low-income sector.