SiiLA's Market Projections: Informed Decision-Making in Latin America's Real Estate Market
- SiiLA monitors over 180 million square meters of real estate across Latin America, providing data-driven solutions and market projections to clients.
- The company´s projections, based on extensive analysis and historical trends, empower professionals to make informed investment decisions in the dynamic commercial real estate market of the region.
SiiLA is currently monitoring over 180 million square meters of offices, industrial properties, and malls throughout Latin America. With this extensive amount of information, the company offers a range of data and analysis solutions to the market. These solutions include Market Analytics, GROCS, FII Data Pro, and others.
Moreover, SiiLA's team utilizes this information and analysis to develop exclusive market forecasts that are available to Market Analytics subscribers. These projections primarily focus on the high-end office and industrial markets (Classes A+ and A) in São Paulo and Rio de Janeiro. The goal is to provide SiiLA clients with a well-informed perspective based on the intelligence team's extensive knowledge and the company's historical analysis.
"Our market forecasts are the result of a meticulous process that involves analyzing trends and historical patterns, as well as considering economic, political, and social factors that may impact the real estate sector. We take into account not only raw data but also the broader context in which this data is situated," says Giancarlo Nicastro, CEO of SiiLA.
Since 2017, SiiLA's projections have offered perspectives on best-case, base-case, and worst-case scenarios for key real estate indicators, including vacancy rates, new supply, and net and gross absorption.What are these projections for?
The real estate sector undergoes constant evolution, with emerging tenant demands, changes in occupancy dynamics, and developments in construction activities. Compared to other economic activities, the real estate market cycle is longer. From land acquisition to legal approvals, construction, and subsequent occupation, many years can pass. Therefore, professionals who are prepared to understand the prospects of the real estate landscape can make more informed decisions.
To better understand the projections, it's important to grasp some key points. One of them is the utilization of historical data series and SiiLA's sector expertise in conducting this type of analysis. For instance, by analyzing the projected new stock of industrial properties in recent years, it becomes noticeable that only something between 60% and 80% of the promised volume actually are delivered. This is a factor that SiiLA already takes into account when developing projections.
Another crucial aspect in developing projection analysis is tracking historical data on net and gross absorption and relating it to new stock. SiiLA's data provides insights into how demand has absorbed newly delivered supply, allowing the company to develop projections for future inventory and anticipate how the vacancy rate will behave. If a significant amount of inventory is expected to be delivered in the same period, an increase in the vacancy rate is predicted, as the demand for new space may not be able to absorb a high volume of newly stock.
The real estate market is a long-term endeavor. Therefore, professionals seeking to understand the sector's prospects can rely on SiiLA's projections to make better-informed investment decisions in the commercial real estate market of Latin America.
