SiiLA's Market Projections: Informed Decision-Making in Latin America's Real Estate Market

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.