London-based PropertyWire, reports on the coming surge in certain Latin American markets given the increased interest from foreign buyers and developers, many from the U.S., Europe and Asia. The real estate news service points to the recently announced trade mission by Indian developer group GIHED, and their search for opportunities and joint ventures in Argentina and Brazil. U.A.E.-based Elysian International has shown strong interest in the region, having recently acquired a 174-villa resort in Rio de Janeiro for $100 million. With over 600,000 properties in 117 countries, Elysian is no stranger to foreign development, which puts Elysian CEO Masood Naseeb’s comments in sharp context: “We are predicting a 1,000 to 7,000% appreciation on land in the region particularly in the coastal areas.” Still, Elysian’s string of acquisitions suggests their primary focus is on Brazil and, for those investor groups flush with petrodollars, the cost of Brazilian real estate doesn’t elicit as much as a blink. Yet, it’s worth noting the recent run-up in prices has the Brazilian Central Bank scrambling to create a real estate index to measure these increases. As speculative fever rises in Brazil, commercial properties in neighboring Argentina and Uruguay continue to enjoy more moderate annual appreciation, hence foreign investors are likely to find better values here. Both countries offer ample inventory of large parcels for the development of gated residential communities, suburban parcels for the construction of office parks, downtown hotel/restaurant renovation opportunities and of course vast rural estancias for the development of large-scale agribusiness projects. With the goal of bringing more of these opportunities to light, we will be launching a Google Map this week with detailed property information. If the coming surge is inevitable, we want it coming to the Tango Coast. (PropertyWire)

Office rents in Buenos Aires are competitive according to CBRE's semi-annual survey.
CB Richard Ellis just released their semi-annual survey of global office rents, and the news won’t come as a surprise to multinationals with offices in Buenos Aires and other international hubs. Of the 179 markets surveyed, there was a 7.7% decline in office rents, almost 50 markets posted double-digit declines, and 40 markets actually posted year-over-year increases. The most expensive office markets remain London’s West End ($184/SF), Tokyo ($171/SF), Hong Kong ($137/SF) and Moscow ($131/SF). In contrast, Buenos Aires sits comfortably at the opposite end of the affordability spectrum at $35/SF for average rent and $44/SF for average total occupancy costs. CBRE summarizes the office outlook in BA: “Argentina is now showing signs of recovery. The rise in unemployment in September was more modest than expected, and consumer confidence seems to be slowly improving. Several new high-end office buildings are nearly completed, which will push vacancy rates higher and lease rates lower, absent a strong economic recovery.” On a regional level, BA office space is beginning to look even more affordable relative to neighboring Brazil where office rents in Rio and São Paulo are now $70/SF and $64/SF, respectively. To access the full CBRE Global Office Rents Survey, click here for the 21-page PDF.









