The commercial real estate market in Mexico has remained remarkably stable in the face of the downturn in the US economy following the global financial crisis of late 2008, a new report shows.
Mexican property developers have done a surprisingly good job at matching new supply of real estate with demand, says the report. For the time being, we remain optimistic that protagonists will continue astutely to balance supply and demand over the next five years,’ it continues.
The report, published by BMI (Business Monitor International), looks at both the long and the short term prospects.
More investors from the US are looking at property in Mexico as prices are lower, it says. Experts warn that the low prices will just stay that way for quite some time.
Property prices in Mexico have, on the whole, been far less affected by the US housing bubble and the international recession than those across the border. In certain tourism hot spots prices fell more because of a glut of new construction. But according to agents price reductions are disappearing and sellers are listing their properties back at prices seen at the end of 2007, beginning of 2008.
Meanwhile, a fund geared to buying industrial real estate in Mexico has raised $293.3 million from investors. Prudential Real Estate Investors said it will invest in developing industrial sites and acquire portfolios or individual properties with a focus on tenants that distribute or manufacture goods to Mexican or US consumers.
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