Mexico Construction

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Chapter | Construction & Real Estate from The Report: Mexico 2017

Mexico’s construction industry is changing gears in 2017. It is the fourth-largest value-added activity in the country and constitutes 8% of GDP. A young, growing population and a rising middle class continue to drive demand for homes, shops, factories and offices. The infrastructure industry is preparing for a future where private sector funding takes over from the public sector and becomes...

At a time when a number of major Latin American economies, including Brazil and Venezuela, are heading toward recession, Mexico’s economy stands out in the region for its resilience. Projections for 2017 are couched in more uncertainty than is usual, however, in light of the lack of clarity over and the potential impact of policy changes in the US during the first year in office for US President Donald Trump. 

 

Mexico’s real estate sector has been witnessing the growth and impact of real estate investment trusts (REITs), known locally as Fideicomiso de Infraestructura y Bienes Raíces (FIBRAs). These are vehicles for real estate portfolio management which rely on the issuing of real estate certificates to investors. As of early 2015, nine different...

 

A growing population and urban development in key cities across the country has put housing development at the forefront of government policy. But the 2013 housing crisis, which saw the collapse of three of the biggest homebuilders in Mexico, has led the government to change the focus of this policy. A rethink of subsidy allocation, coupled...

 

Still reeling from the recent crisis that shook Mexico’s main homebuilders to the core, the country’s real estate sector continues to expand despite the challenges. A resolution of the failed housing development model, which aimed at expanding availability on the outskirts of the capital, is now pushing home development closer to central...

 

Do you foresee delays with infrastructure projects in Mexico if low oil prices persist?

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