Latin America Office Real Estate Market Size

Latin America Office Real Estate Market Analysis

The size of the Latin America Office Real Estate Market is valued at about USD 29.02 billion in the current year and is anticipated to register a CAGR of over 5.5% during the forecast period.

• The pandemic, the health of the world economy, and the political atmosphere in Latin America have all affected how real estate investment is conducted there. An increase in alternate methods for the industry's assets can be attributed to the current situation.
• In this scenario, the real estate industry faces unique challenges and unique factors, such as a decline in commercial rent (for offices and retail properties), which generally appears to be a temporary trend, an acceleration of construction costs, rising interest rates, increased access to financing for developers and buyers of these assets, and a change in real estate finance structures. The impact of each of these elements has been to reduce margins in the real estate industry.
• At the end of 2021, Latin America Office Real Estate market had a half million negative square metres; by the first half of 2022, it had roughly 100,000 square metres . Additionally, the inventory expanded by more than 300,000 square metres throughout the nine locations examined, totaling more than 25 million square metres of Class A spaces. Thus, Commercial real estate offers a high return on investment and additional income prospects, which has long been the belief of real estate investors. The demand for commercial real estate is at an all-time high due to the expansion of economic activity and the bulk of the workforce returning to work. Office real estate value has increased as a result of digitalization, policy assistance, low interest rates, and rising consumer confidence, and new trends are continually emerging, which bodes well for the market's future.