In 2010, South America was going through an economic boom thanks to increasing raw materials exports to China and the expansion of the middle class. According to the report Global Cities 2015, from the global real estate consultants Knight Frank, this recovery captured the interest of international real estate investors and sales took off.
However, exports soon slowed down as China's growth tapered off and long-term interest rates in the United States increased, resulting in a weakening of exchange rates and an outflow of capital from emerging markets. Consequently, real estate sales also suffered. According to Knight Frank, sales of commercial properties hit a peak of close to $15 billion in 2011, and then slid to $5 billion in 2013, with further declines in 2014.
MEXICO THE EXCEPTION IN LATIN AMERICA
* Thanks to the stability of its fundamentals, investment in real estate has exploded since 2012. Sales of commercial real estate alone was more than $5 billion in 2014.
* Over the last 20 years, 45...