Argentina,The apple in Latin America’s eye
July 12th 2008 08:50 pm
Four months before the exhibition’s inauguration, more than 30 Latin American companies have leased space in the Madrid International Real Estate Exhibition. The economic recovery of markets from the other shore of the Atlantic and the possibility to get higher profitability ratios than in Spain or than in the United States are encouraging savers to invest in properties in Latin America. Companies from Argentina, Brazil, Colombia, Uruguay, Panama, Mexico and Chile will take part in SIMA’s tenth edition once again. “Some of the most used formulas by entrepreneurs and investors to penetrate Latin American markets are to purchase huge buildings in financial districts in order to rent them out as companies’ headquarters, to buy land in the coastline to build second-home developments or to buy apartments under a condo-hotel system”, points out Santiago Herreros de Tejada. Argentina will have one of the most numerous representations of those participating in SIMA08. According to Jaime Garbasky, president of Grupo Ecipsa, “the apple in the eye” of Latin America generates profits up to 35 percent of the property’s original value, and annual incomes for renting activities are about 12 percent. Mexico, Colombia, Chile, Panama and Uruguay are some of the other Latin American markets that will participate in SIMA08. “Chile’s higher degree of legal certainty, Uruguayan second-home housing developments and resorts in the pipeline and a strong demand of properties in Mexico are some of the attractive factors of those markets”, says Santiago Herreros de Tejada, director of International Expansion of Planner Reed.