Author Brenda Salas, real estate expert and collaborator for “Infrastructure Mexico,” states that there is currently an unexpected optimistic trend in Mexico for this industry.
The real estate is expected to grow at a constant rate for the entire year, creating a positive investment environment for developers. Mexico City is one of the most attractive cities for the purchase and leasing of real estate, but there are many thriving cities throughout the country that are expected to boom.
According to a study performed by Tinsa, a leader in real estate consulting, the top Mexican Cities with the best markets for commercial, corporate, housing, and industrial parks are:
1. Mexico City
9. Villa Hermosa
The success of these real estate markets depends directly on the increased population of those regions, the development of new infrastructure, governmental reforms that encourage investment, urbanization, and growing market competition from big developers. These states will experience elevated levels of growth throughout the year and attract the grand majority of the country’s foreign investment, representing more than 57% of the GDP, and holding more than 51% of the population.
Housing Credits Galore
Housing developers will make a comeback to the stock market after improving investor relationships. According to CONAVI, investment in housing sector will increase by 7% in 2016, and FOVISSSTE will invest more than MX$52 billion in housing credits. The growth of the housing market in Mexico will help accomplish the National Development Plan’s goal to construct an inclusive and prosperous country through the creation of jobs throughout the country. The cities that received the most financing through Infonavit were Nuevo Leon, Jalisco, and the State of Mexico, and also will dominate the new housing market.
Skyhigh Price of Space
Commercial infrastructure will not lag behind this year. Mexico City will be constructing 13 immense shopping centers throughout the year and the construction of numerous corporate office buildings throughout the country. There were 21 new office buildings built in Mexico City alone in 2015, and it is predicted that 35 new towers will take their place in Mexico’s skyline. The demand for offices will increase by 29% in 2016, and they are being built taller, with more technology, and with the best quality ever. Mexico City is expected to have vacancy rate of 13.2 and a price of US$28.02 per square meter.
The real estate market seems to have great expectations to fulfill, but a big question remains: What are the trends that are swaying the growth of the Mexican real estate market?
1. The Drive of the Automotive Industry
It is no secret that the growth of the automotive industry is speeding by the rest of the industries; nevertheless it is pulling the real estate market with it. The creation of new automotive plants such as Mazda, Nissan, and Audi will set off investment in the development of stores, warehouses, and ports.
2. Multipurpose Spaces
Space is limited, and if it is in Mexico City, then it certainly is not cheap. The lack of space in many cities is creating a demand for interdisciplinary spaces. Hospitals, malls, skyscrapers, and houses are beginning to develop projects that increase efficiency and bring together a variety of activities, business, and resources into one space. Monterrey, Mexico City and Guadalajara are the pioneer cities of this type of real estate market.
3. Fibra Strengthens the Market
Fibra, or REIT in the US, are trust funds used to invest and manage real estate portfolios. These financial vehicles are taking flight in the market and will boost the development of real estate everywhere. Fibras account for 2% 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, & Obrasweb
more recommended stories
Make Your Play in Yucatán
Yucatán Peninsula casinos and hotels are.
Christmas Meditation: Dec. 21 at St. Luke’s Episcopal Church
Christmas Meditation is a public event.
Writing As Mindfulness Practice: December 18, 2018. 7 PM at MEL
Writing As Mindfulness Practice is public.
Did you know that the Soviet Union created a Maya playing cards deck back in the 50s?
IN THE 16TH CENTURY, SPAIN conquered most.
The Riviera Maya Jazz Festival one of the 10 most important in the world
The Riviera Maya Jazz Festival is.
Fine Maya art replicas at AANY “Arte a Mano” 2018
Pieces that recreate the splendor of.
OPINION: On December 1, AMLO Became the President of Mexico
On December 1st, 2018, Andres Manuel.
TOBALÁ 58: the perfect spot for your #Posada or Christmas party
Tobalá 58 Ceviche-Bar offers an ideal.
How to maintain a happy and healthy lifestyle in Mexico
From experiencing delicious food and making.
Hilton opens new All-Inclusive property in Playa del Carmen
Hilton has opened three new all-inclusive.