Thursday, August 11, 2011

Mexico Real Estate Report Q3 2011


The Mexico Real Estate Report provides industry professionals and strategists, corporate analysts, real estate associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Mexico's RealEstate industry.

Mexico is well into its second year of positive economic news and this, along with a gradually improving business environment, this has reinvigorated the country’s commercial real estate sector. Tax cuts in the US should keep external demand strong.

Commercial real estate has, until now, been relatively well balanced and got itself through the harder times without generating a mass of over-supply. Vacancy rates remained reasonably low through 2010. However, the office sector is particularly attractive to investors and this report may see this push up supply. The government is currently intervening in the residential real estate market, particularly with a view to increasing access to and the availability of low-cost residential property. The government has offered incentives, both to residential real estate developers and to potential (mostly first-time) home-owners, which may well help millions of households buy their own home.


Some of the key opportunities currently in the real estate market are:


- Improving economic strength and general business and consumer confidence will increase demand for all types of real estate space. However, this has not, as yet, led to any over-heating of the market. In-country sources indicated that they are expecting single-digit rises in rents over the course of both 2011 and 2012. Capital values and rents look set to move together and means yields should remain as they are currently.


- Improving credit availability to both developers and residential house purchasers should allow more space to be built and for demand to increase. 

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