yea, we have had heavy contact from developers recently. You know the guys that would not give us the time of day two years ago, now begging for meetings. We have also found when negotiating for clients the developers are willing to more or less give us anything we ask for. They use to be fairly, take it or leave it.
I should caution however this is for condos or cookie cutter type developments. Individual houses and properties outside the shake and bake Chilean geared developments are still solid, and sellers are still not really willing to move much more than about the traditional 10% wiggle room in any negotiation in Chile. What has dried up is that middle to lower class second home market for Chileans from Santiago that had use to have credit and a bit of disposable income. They where designed and built for a market that was marginal at best to start. Once that dried up, then the deals came out.
I would also caution about reading in to this any comparisons between what has happened in the U.S. vs. what is going on in that segment of the Chilean real estate market. The banks in Chile did not over extend themselves with loans they can not recover. This is just a case of excess inventory that developers overreached, and now they are liquidating and pulling back on starting new projects. They had massive profit margins on those apartments. In many cases they likly exceeded 200% profit margin on the cost of building or more. They are not exactly taking a bath.
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