Rise of the Left - the Fall of Real Estate?

With the reelection of Venezuela’s HugoAmerican countries are nevertheless doing well,
Chavez and Brazil’s Lula da Silva and thedespite the sweeping gains by the left. Except in
victories of Rafael Correa in Ecuador and EvoVenezuela the newly elected socialist governments
Morales in Bolivia, Latin America has moved firmly toseem relatively benign, and unlikely to pose much of a
the left.threat to property investors.
Other leftist presidents include Michelle Bachelet (Chile),Some of the markets are even seeing real estate
Alan Garcia (Peru), Daniel Ortega (Nicaragua), Nestorbooms and recoveries. Nicaragua, Argentina and
Kirchner (Argentina), Tabaré VázquezUruguay are offering high yields and good location at
(Uruguay).significantly lower prices.
Some of these leaders openly admire the extremistThe real issues which deter foreign investment and
rhetoric and gestures of Hugo Chavez, who hasproperty market growth are civil wars, high crime
promised to transform Venezuela from a capitalist torates, and social unrest. As Latin America increasingly
a socialist state. Chavez’ government openlyobtains access to US markets, and as the circle of
tolerated violation of property rights to address acountries in which US retirees are willing to settle
housing crisis he has partially created.widens, the outlook for residential property in Latin
In a new report out this week, the Global PropertyAmerica remains positive.
Guide notes that property markets in many Latin