Mexico real estate a bright spot for investors

Cabo North
Cabo Norte is a huge planned community planned on 309 acres north of the periférico in Mérida
Cabo North
Cabo Norte is a huge planned community planned on 309 acres north of the periférico in Mérida

Mexico is coping with plummeting oil prices and the devaluation of the peso, but there is one good reason for investors to stick around. The growth trend in Mexico’s real estate sector is expected to endure for the entire year.

Based on increased population, new infrastructure and pro-investor governmental reforms, real estate consulting firm Tinsa includes Mérida among nine cities in Mexico recommended to real estate investors: Mexico City, Guadalajara, Monterrey, Toluca, Querétaro, Puebla, Veracruz and Villa Hermosa complete the list.

These states will experience elevated levels of growth throughout the year and attract the great majority of the country’s foreign investment, representing more than 57 percent of the GDP, and more than 51 percent of the population, says Tinsa.

Housing developers will make a comeback after improving investor relationships. According to CONAVI, investment in housing sector will increase by 7 percent in 2016, and FOVISSSTE will invest more than MX$52 billion in housing credits.

21 new office buildings

Commercial infrastructure will not lag behind this year. Mexico City will see 13 immense new shopping centers throughout the year and the throughout the country, numerous corporate office buildings are in the works.

There were 21 new office buildings built in Mexico City alone in 2015, and it is predicted that 35 new towers begin to reshape Mexico’s skyline.

The demand for offices will increase by 29 percent in 2016, and they are being built taller and with more technology built in. Mexico City is expected to have vacancy rate of 13.2 and a price of US$28.02 per square meter.

Here are the trends inciting growth in the Mexican real estate market?

The Automotive Industry
The creation of new automotive plants including Mazda, Nissan, and Audi will set off investment in the development of stores, warehouses and ports.

Multipurpose Spaces
Space is limited, and if it is in Mexico City, it certainly is not cheap. Hospitals, malls, skyscrapers, and houses are beginning to appear in efficiency-minded projects that bring a variety of activities, business, and resources into one space.

Fibra Strengthens the Market
Fibra, or REIT in the US, are trust funds used to invest and manage real estate portfolios. These financial vehicles will boost the development of real estate everywhere. Fibras account for 2 percent of the GDP, and its success has led to the union of the 10 fibras as the Mexican Association of Mexican Real Estate REITs (AMFI).

With information from: Tinsa, CNN, Metroscubicos, Forbes and Obrasweb

 

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