Boston, MA -- (ReleaseWire) -- 04/29/2014 -- Venezuela's commercial real estate sector is set for continued turbulence over 2014. Several opposing factors, including the devaluation of the bolivar, a lack of new supply of commercial real estate, external macroeconomic headwinds and a deteriorating political environment will affect the sector. Office rental rates in the capital, Caracas, rose 80% year-on-year (y-o-y) in the first half of 2013 to USD150 per square metre (sq m) per month. The increase has been attributed to the devaluation of the Venezuelan bolivar, which has made the country's office rental market the most expensive in Latin America. Many businesses are now reported to be keen to purchase their offices, or are considering alternative locations. Comparative space elsewhere in Latin America cost between USD20 and USD35 per sq m, according to Jones Lang LaSalle.
View Full Report Details and Table of Contents
The bolivar's depreciation, in conjunction with the government's H113 introduction of a dual exchange rate system, will have a tangible effect on the commercial real estate sector by curtailing business activity. There is some uncertainty in the market as a whole as to what effect the currency depreciation will have on rental levels, as landlords could choose to raise rents in bolivar terms in order to offset the loss in value relative to the dollar.
About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Business research reports at Fast Market Research
You may also be interested in these related reports:
- Russia Real Estate Report Q2 2014
- Croatia Real Estate Report Q2 2014
- Germany Real Estate Report Q2 2014
- Pakistan Real Estate Report Q2 2014
- South Korea Real Estate Report Q2 2014
- Japan Real Estate Report Q2 2014
- Australia Real Estate Report Q2 2014
- United Arab Emirates Real Estate Report Q2 2014
- Slovakia Real Estate Report Q2 2014
- Czech Republic Real Estate Report Q2 2014