In its recent Mexico Real Estate report,Business Monitor International (BMI) extensively examined the exploding growth of the market’s various sectors,including residential,commercial office,retail,industrial and construction,throughout the entire country. The latest report covers market performance,including rates and yields over the last 18 months and looks at ways to maximize returns while minimizing risk.
BMI is dedicated to providing unbiased risk and industry research for more than 140 countries worldwide and more than 400 of the current Global Fortune 500 companies. Businesses,banks,financial services corporations,as well as governments and those in academia regularly rely on the organization’s analysis,data and forecasts,which means their recent glowing review of real estate in Mexico packs a serious punch.
“Mexico’s construction industry continues to progress along a robust path and the outlook is among the most stable in the Latin America region," writes BMI. “We anticipate growth to remain around the 4 to 5 percent level over the medium term,incorporating a .5 percent increase as a result of the [recent] election.”
The election of President Enrique Peña Nieto is viewed as a positive indicator for the future of Mexico’s real estate growth,in part due to his history as governor,where he presided over an ambitious infrastructure build-out and attracted many new private investors. Mexico’s residential sector is expected to continue its recent trajectory,with a forecast of at least 1.9 percent growth in terms of construction,with activity expected to receive an added push in 2013.
“We expect Mexico to continue to outperform the region,” writes BMI. “While manufacturing will likely continue acting as the main driver of growth over the coming decade,we believe Mexico is set to begin transitioning toward a more services-oriented economy,with a stronger private consumer boosting the country’s economic outlook and retail segment.”