In a Q4 Mexico real estate report,the respected London-based industry analysts at Business Monitor International (BMI) examine the continued growth of the nation’s commercial real estate market. The report is the first of its kind to come out since business-friendly Presidential candidate Enrique Peña Nieto won the recent election,and covers the real estate rental market over the last 18 months in various areas throughout Mexico.
BMI found that commercial real estate rental growth has remained stable and reported that growth is expected throughout the second half of 2012 in a review that was increasingly positive regarding Mexico’s potential.
“In the wake of Mexico’s July 1 presidential election,we are revising up our 2012 real GDP growth forecast,from 3.4 percent to 3.8 percent,as the victory of business-friendly Enrique Peña Nieto bolsters investment,” shared analysts from BMI. “Investment will continue to rise in 2013.”
The growth is expected to be centered on a variety of continued improvements to the tax,labor and energy sectors in Mexico that were promised by the president-elect throughout his campaign. Peña Nieto has already begun to prioritize his incoming agenda,with a clear focus on anti-corruption measures and economic reforms. In addition,BMI estimates an average construction industry growth forecast of more than 4.3 percent between 2012 and 2016.
“We anticipate that Mexico’s construction industry will continue to make a steady recovery from the recession which took hold in 2008,” shared BMI analysts. “The outlook is more stable than many others in the region,with private investment expected to grow in light of the new laws.”
The BMI report covers Mexico’s rental market performance in terms of rates and yields over the past 18 months and is dedicated to providing information for buyers about how to best maximize returns and minimize risk in the commercial real estate market.