2012-07-25 18:08:07 - Recently published research from Business Monitor International, "Venezuela Real Estate Report Q3 2012", is now available at Fast Market Research

Venezuela's real estate sector is like none other in Latin America. In essence, the government - and, thanks to a variety of populist policies, the public sector - is the key player. For years, the government ran a sizeable budget deficit (in spite of the general upward trend in revenues that it received from the energy sector). High inflation has discouraged savings and investment. Populist government policies have also discouraged the long-term commitment of funds to real estate projects. Investors look for real appreciation in capital values. However, it is relatively difficult to identify what is going on as a result of the low level of transactions, particularly in the commercial sub-sectors. Parties who are lucky enough to actually own

prime property have little incentive to sell - in a country where there is, and will continue to be, a chronic shortage.


Full Report Details at
- www.fastmr.com/prod/436210_venezuela_real_estate_report_q3_2012. ..


Construction activity in recent months, however, has picked up, as part of President Hugo Chavez's social spending measures ahead of the presidential elections on October 7 2012. Overall construction growth reached 4.75% year-on-year (y-o-y) in 2011, and BMI expects a continued pick-up in activity over the short term.

Similarly, we expect an uptick in wider government expenditure in the run up to October's election, although we are predicting a slowdown in economic growth in 2013. Real GDP in 2011 came in slightly above our 3.2% estimate, at 4.2% y-o-y. However, while the current macroeconomic trajectory is sustainable until October, we highlight that immediate challenges will face whoever wins the presidential election.

Key Opportunities In The Real Estate Sector:

* In Venezuela, the main opportunity for the real estate market is a wildcard: the possibility that the current administration will completely revise its policies; or that Henrique Capriles' opposition party will assume power and alter investment plans.
* It has been reported that housing will play a major role in October's presidential elections. While current developments are firmly rooted in the residential sector, an increase in general real estate activity may consequently drive interest in the commercial market.
* Automotive production growth is set to continue in Venezuela, although remaining below the peak in 2007. This could support and drive industrial real estate developments.

Key Risks To The Real Estate Sector:

* The key threat is that of ongoing stagnation. Under the status quo, there is little reason for capital to flow to the real estate sector. The distortions that arise from the way Venezuela's economy is managed also constrain the development of large retailers and manufacturers. * The country's debt burden is set to rise, and a third devaluation of the bolivar seems on the cards.

Partial Table of Contents:

SWOT Analysis
- Venezuela Real Estate/Construction SWOT
- Venezuela Political SWOT
- Venezuela Economic SWOT
- Venezuela Business Environment SWOT
Real Estate Market Overview
Market Analysis - Office
- Supply And Demand
- Rents And Yields
- Table: Historic Rents - 2010-2011 (US$ per m2/month)
- Table: Net Yield, 2011-2012 (%)
- Table: Terms of Rental Contract/Leases - Mid-2011
- Industry Forecast Scenario
- Table: Forecast Rents - (US$ per m2/month)
- Table: Forecast Net Yield, 2008-2016 (%)
Market Analysis - Retail
- Supply And Demand
- Rents And Yields
- Table: Historic Rents - 2010-2011 (US$ per m2/month)
- Table: Net Yield, 2011-2012 (%)
- Table: Terms of Rental Contract/ Leases - Mid 2011
- Industry Forecast Scenario
- Table: Forecast Rents - (US$ per m2/month)
- Table: Forecast Net Yield, 2008-2016 (%)
- Table: Venezuela Retail Sales Indicators, 2008 - 2016
Market Analysis - Industrial
- Supply And Demand
- Rents And Yields
- Table: Historic Rents - 2010-2011 (US$ per m2/month)
- Table: Net Yield, 2011-2012 (%)
- Table: Terms of Rental Contract/ Leases - Mid-2011
- Industry Forecast Scenario
- Table: Forecast Rents - (US$ per m2/month)
- Table: Forecast Net Yield, 2008-2016 (%)
Forecast Scenarios
- Infrastructure Report
- Table: Venezuela Construction And Infrastructure Industry Data
- Table: Venezuela Construction And Infrastructure Industry Data
- Construction and Infrastructure Forecast Scenario
- Risks To Outlook
- Macroeconomic Outlook
- Table: Venezuela - Economic Activity
Real Estate Risk/Reward Ratings
- Real Estate/Construction Risk/Reward Ratings
- Table: Latin America Real Estate Risk/Reward Ratings
- Venezuela's Business Environment
- Table: BMI Business And Operation Risk Ratings
- Institutions
- Table: BMI Legal Framework Rating
- Infrastructure
- Table: Labour Force Quality
- Table: Latin America, Annual FDI Inflows
- Table: Trade And Investment Ratings
- Table: Top Export Destinations
- Operational Risk
Competitive Landscape
Company Profiles
- Oriente Entidad de Inversion Colectiva de Inmobiliaria CA
- Otepi
- Tecnoconsult
- Vepica

Full Table of Contents is available at:
-- www.fastmr.com/catalog/product.aspx?productid=436210&dt=t

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at www.fastmr.com or call us at 1.800.844.8156.