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CREDIT OUTLOOK 2025

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Non-Rating Action Commentary


LATIN AMERICAN REAL ESTATE OUTLOOK 2025

Tue 10 Dec, 2024 - 11:30 ET



Related Content: Latin America Real Estate Outlook 2025

Fitch Ratings-Rio de Janeiro/New York/Monterrey-10 December 2024: Fitch Ratings
expects the fundamentals of the Latin American real estate sector to remain
solid across various countries. While industrial real estate in Mexico is
anticipated to benefit from nearshoring in the medium term, growth may moderate
as stakeholders react to evolving policies in Mexico and the U.S. Revenue and
EBITDA growth across the region are projected to continue, driven by stable
demand, mergers and acquisitions, and expansion projects. Occupancy levels are
generally expected to stabilize, with lease spreads aligning more closely with
inflation.

Retail space and shopping malls in major markets such as Mexico and Brazil are
expected to maintain strong operating metrics, with rent increases at or above
inflation, high collections, and stable occupancy rates. In Chile, growth is
likely to be modest, reflecting a gradual recovery in private consumption as the
labor market improves. In Argentina, growth is anticipated to remain subdued,
though an improvement in consumption may provide upside for mall operators.

For the office segment across the region, issuers are prioritizing higher
occupancy over rent increases. Gradual improvement in occupancy rates and rents
is expected to continue beyond 2025, although the pace may be moderated by
factors such as oversupply and the prevalence of hybrid work models.

Overall, Latin American real estate credit profiles exhibit low to moderate
credit risk, supported by strong financial health, healthy capital access, and
stable net operating income. Sector leverage remains manageable, with adequate
liquidity profiles, minimal near-term debt maturities, and significant
unencumbered assets, providing a stable foundation despite potential challenges.

Contact:

Priscilla Cano, CFA
+52 81 4161-7064
priscilla.cano@fitchratings.com
Fitch Mexico S.A. de C.V.
Prol. Alfonso Reyes No. 2612, Edificio Connexity, Piso 8, Col. Del Paseo
Residencial, Monterrey 64920

Eduardo Trejos
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Natalia Brandao
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natalia.brandao@ficthratings.com


Andres Correa
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andres.correa@fitchratings.com


Jailine Pena
+1 212 612-7812
jailine.penalopez@fitchratings.com









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Real Estate and Homebuilding
Corporate Finance
Latin America
Argentina
Mexico
Brazil
Chile


RELATED REGIONS

 * Brazil
 * Mexico
 * Chile
 * Argentina





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