Construction & Real Estate

Mexico’s construction industry had a difficult year in 2013. After growing 4% in 2011 and 1.9% in 2012, the accumulated losses for the sector during the first nine months of 2013 amounted to a 4.5% reduction in construction activity. An acceleration of government spending before the end of the year allowed the sector to finish with a more modest reduction of 2% in construction activity, with the sector accounting for 7.6% of GDP in 2013. The homebuilding sector has been the worst affected. Reeling from a crisis that left some of the country’s largest home builders in bad shape, the real estate sector is finding ways to grow in other segments. Investment coming through new property trusts is pushing the sector to rally around more profitable markets, while demand for office, industrial and commercial space continue to sustain the real estate sector. This chapter includes an interview with Alonso Quintana Kawage, CEO, Empresas ICA.