The city of Montevideo in Uruguay hosted the 12th FIABCI Cono Sur meeting last September 19-21. About a hundred real estate professionals representing the various countries in the region attended the event, together with representatives from the municipalities of Montevideo and Asuncion (Paraguay). Mr. Enrique Riera, from the city of Asuncion, spoke of the region’s depressed real estate market, particularly in Paraguay owing to the lack of financial institutions offering long-term financing for real estate. He added that there are good opportunities for foreign direct investment in the residential sector.

Mr. Robert Eychner, president of Eychner Associates and member of the North American delegation, spoke of his experiences during the real estate recession in the United States. According to Eychner, professionals who survive the recurring periods of recession in the real estate market emerge “stronger and wiser.” The real estate market in the United States saw interest rates in the ‘70s reach as high as 20 or 22% and so banks were reticent about granting loans for real estate purchases. During this crisis, certain real estate professionals convinced the sellers and other private individuals to set up “private financing.” These same professionals also convinced buyers that they were buying at low prices. Most of these private financial operations were set up for periods ranging from between three and five years and real estate professionals prayed that the interest rates would fall during that period – which they did. According to Eychner, periods of recession always present opportunities which real estate professionals must identify to be able to convince others of their potential benefits. Real estate professionals can and must be a driving force in periods of economic recovery.

There was also a regional meeting of ‘Principal Members’ during this event which brought together eleven national associations.