Venezuela Real Estate Report 2016 - Business Monitor International - Industry Reports

Venezuela Real Estate Report 2016

Venezuela Real Estate Report 2016 - Business Monitor International - Industry Reports
Venezuela Real Estate Report 2016
Published Aug 13, 2016
52 pages — Published Aug 13, 2016
Price US$ 1,295.00  |  Buy this Report Now

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Abstract:

BMI View: Years of economic mismanagement and the fall in the price of oil have plunged Venezuela into an economic crisis. Private sector investment has shrunk and consumer purchasing power has been eroded due to hyper-inflation. ...This is likely to lead to a decline in rental values in real terms and we do not expect this to change in the short term. Over the past year as inflation has continued to increase, there has been a tendency for tenants to buy the office buildings they rent in order to find a safe haven in equity rather than cash and mitigate against the erosion of their capital. The retail real estate sector is also being impacted by economic contraction and the erosion of consumes purchasing power due to high inflation. ...The current conditions mean that not only exports are suffering, but imports have fallen sharply, reducing demand for distribution and warehousing space. We believe the market will remain weak in the next two years and expect rental values to fall during this period.

...Over-reliance on oil revenues makes the country vulnerable to fluctuations creating instability in economic performance, which in turn impacts on tenant and investor demand in commercial property sectors. Minimal speculative development will inhibit the availability of modern space to tenants as well as limiting supply of investment grade asset. ...Over-reliance on oil revenues makes the country vulnerable to fluctuations creating instability in economic performance, which in turn impacts on tenant and investor demand in commercial property sectors. Minimal speculative development will inhibit the availability of modern space to tenants as well as limiting supply of investment grade asset. Difficulty in repatriating profits and getting hard currency make it difficult to do business in Venezuelan commercial real estate. ...Difficulty in repatriating profits and getting hard currency make it difficult to do business in Venezuelan commercial real estate. The lack of business transparency acts is a deterrent to potential tenants and investors.

...Tight supply due to a lack of new construction should provide some support for rents in the face of falling tenant demand as the economy struggles. The government has pledged to expand the country s tourism sector in the medium term, which could boost demand for retail and hospitality real estate in some areas. ...

  
Source:
Document ID
2040-7572
Country
Industry
Format:
PDF Adobe Acrobat
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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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MLA:
Business Monitor International - Industry Reports. "Venezuela Real Estate Report 2016" Aug 13, 2016. Alacra Store. Dec 08, 2016. <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Venezuela-Real-Estate-Report-2016-2026-1015>
  
APA:
Business Monitor International - Industry Reports. (2016). Venezuela Real Estate Report 2016 Aug 13, 2016. New York, NY: Alacra Store. Retrieved Dec 08, 2016 from <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Venezuela-Real-Estate-Report-2016-2026-1015>
  
US$ 1,295.00
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