Latin America Commercial Real Estate Market Size (2024 - 2029)

The Latin American commercial real estate market is poised for growth, with the industrial segment maintaining strong performance despite challenges in the retail sector. The multi-family segment presents significant potential, while the Class A office sales have been hindered by extended sales timelines and economic difficulties. The market's expansion is further supported by the rise of PropTech, particularly in countries like Mexico, Brazil, Chile, and Argentina, where technological advancements are driving transformation in the industry.

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Market Size of Latin America Commercial Real Estate Industry

Latin America Commercial Real Estate Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 4.00 %
Market Concentration Low

Major Players

Latin America Commercial Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

Latin America Commercial Real Estate Market Analysis

The Latin American commercial real estate market is expected to record a CAGR of over 4% during the forecast period 2022-2027. Despite setbacks in 2020 and 2021 due to the COVID-19 pandemic, the commercial real estate industry in Latin America had a positive outlook for 2022. 

  • The industrial segment continued to perform well, despite some surprises and overly negative forecasts in the retail commercial real estate markets. Overall, the multi-family segment appears to have a huge opportunity.
  • The increased time to complete sales, unfavorable local economies and a drop in sale price negatively affected the performance of Class A office sales in Latin America during the first half of 2021.
  • With the emergence of PropTech, the commercial real estate industry in Latin America is starting to take off. Mexico, Brazil, Chile, and Argentina are among the countries that have embraced disruptive technology in the real estate industry. In total, there are more than 350 PropTech companies in Latin America, with the majority of them based in Brazil.

Latin America Commercial Real Estate Industry Segmentation

Commercial real estate (CRE) is a property used solely for business or to provide a workspace rather than for residential purposes. Commercial real estate is often leased to tenants for the purpose of conducting income-generating activities. 

The commercial real estate market in Latin America is segmented by type (office, retail, industrial, logistics, multi-family, and hospitality) and by country. The report offers market size and forecasts for the Latin American real estate market in value (USD billion) for all the above segments. The impact of the COVID-19 pandemic on the market will be covered in the report.

By Type
Office
Retail
Industrial
Logistics
Multi-family
Hospitality
By Country
Brazil
Argentina
Mexico
Chile
Colombia
Peru
Rest of Latin America
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Latin America Commercial Real Estate Market Size Summary

The Latin American commercial real estate market is poised for growth, with a positive outlook despite challenges posed by the COVID-19 pandemic. The industrial sector has shown resilience, while the retail segment faced unexpected hurdles. The multi-family segment presents significant opportunities for expansion. The market is experiencing a transformation driven by the adoption of PropTech, with countries like Mexico, Brazil, Chile, and Argentina leading the charge. This technological advancement is reshaping the industry landscape, with Brazil housing the majority of the region's PropTech companies. In cities with populations under two million, such as Monterrey and Montevideo, there are signs of recovery in the premium office market, characterized by high demand and limited supply. Innovation is crucial in this segment, with new developments like the World Trade Centers in Montevideo and Goi√¢nia setting new standards by integrating diverse functionalities such as coworking spaces and service-exporting business hubs.

Latin America presents a myriad of infrastructure investment opportunities, with Brazil emerging as a key player due to its resumption of public auctions in the infrastructure sector. The region's infrastructure gap, significant in areas like sanitation, communication, and energy, offers potential for institutional investors. Beyond Brazil, countries like Mexico, Peru, and Chile have attracted investments in toll roads and natural gas pipelines, highlighting the region's diverse opportunities. The commercial real estate market in Latin America is highly fragmented, with numerous players such as Quality Inmobiliaria and Patio Group driving competition. The market is evolving through technological advancements, prompting brokers, property managers, and developers to enhance productivity and cost-efficiency. Recent acquisitions, such as Colliers CAAC's expansion in Central America and the Caribbean, and Habi's acquisition of OKOL, underscore the dynamic nature of the market, reflecting ongoing consolidation and growth.

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Latin America Commercial Real Estate Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Dynamics

      1. 1.2.1 Drivers

      2. 1.2.2 Restraints

      3. 1.2.3 Opportunities

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

    4. 1.4 Current Economic Scenario and Consumer Sentiment

    5. 1.5 Commercial Real Estate Buying Trends - Socioeconomic and Demographic Insights

    6. 1.6 Government Initiatives and Regulatory Aspects for the Commercial Real Estate Sector

    7. 1.7 Insights into Existing and Upcoming Projects

    8. 1.8 Insights into Interest Rate Regime for General Economy and Real Estate Lending

    9. 1.9 Insights into Rental Yields in the Commercial Real Estate Segment

    10. 1.10 Insights into Capital Market Penetration and REIT Presence in Commercial Real Estate

    11. 1.11 Insights into Public-private Partnerships in Commercial Real Estate

    12. 1.12 Insights into Real Estate Tech and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, Property Management)

    13. 1.13 Impact of COVID-19 Pandemic on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Office

      2. 2.1.2 Retail

      3. 2.1.3 Industrial

      4. 2.1.4 Logistics

      5. 2.1.5 Multi-family

      6. 2.1.6 Hospitality

    2. 2.2 By Country

      1. 2.2.1 Brazil

      2. 2.2.2 Argentina

      3. 2.2.3 Mexico

      4. 2.2.4 Chile

      5. 2.2.5 Colombia

      6. 2.2.6 Peru

      7. 2.2.7 Rest of Latin America

Latin America Commercial Real Estate Market Size FAQs

The Latin America Commercial Real Estate Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)

Quality Inmobiliaria, Patio Group, Boston Andes Capital, Urbanizadora Paranoazinho S / A (UPSA) and TRK Imóveis are the major companies operating in the Latin America Commercial Real Estate Market.

Latin America Commercial Real Estate Market Report Snapshots

Latin America Commercial Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)