2013-01-30 08:45:54 -
New Business research report from Business Monitor International is now available from Fast Market Research
The Mexico Real Estate report examines the commercial office, retail, industrial and construction sectors throughout the country after the election of business-friendly candidate Enrique Pena Nieto in the first presidential polls the country has seen since the global recession.
With a focus on the country's principal cities including Mexico City, Tijuana, Guadalajara, and Monterrey, the report covers the rental market performance in terms of rates and yields over the past 18 months and examines how best to maximise returns in the commercial real estate market, while minimising investment risk.
In our most recent round of in-country interviews, conducted in July 2012, commercial rental growth in Mexico had been fairly stable, particularly in the office and retail sub-sectors. Minimal growth in rents is
expected in the second half of 2012, amid a continued slowdown in the US that has increased caution among international investors. Nevertheless, we maintain an overall positive view about the potential of the commercial real estate sector in Mexico.
Full Report Details at
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www.fastmr.com/prod/529430_mexico_real_estate_report_q1_2013.asp ..
Key Points
* Mexico's construction industry continues to progress along a robust growth path and the outlook is among the most stable in the Latin America region. The election of Enrique Pena Nieto spells further good news for construction sector growth, given his history as governor of the State of Mexico, where he presided over an ambitious infrastructure build-out and attracted private investors. We anticipate growth to remain around the 4-5% level over the medium term, incorporating around a 0.5% increase as a result of the election (based on campaign pledges), with further upside once Nieto takes office and releases his National Development Plan for the country.
* We expect Mexico's residential and non-residential construction sector to continue along its sluggish trajectory for the remainder of 2012, forecasting 1.9% real growth in the sub-sector for 2012. However, upside risks to our forecast will likely kick in following the swearing in of Enrique Pena Nieto in December, and we expect that an increase in private sector involvement and an invigorated National Infrastructure Plan (NIP) will bolster activity from 2013 onwards. As such, we expect Mexico to continue to moderately outperform the region. However, structural inefficiencies - especially those evident in the residential housing market - will persist to curtail growth in the sector over the medium term.
* 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.
Partial Table of Contents:
SWOT Analysis
- Mexico Real Estate/Construction SWOT
- Mexico Political SWOT
- Mexico Economic SWOT
- Mexico Business Environment SWOT
Real Estate Market Overview
Market Analysis - Office
- Rents And Yields
- Table: Historic Rents - 2011-2012 (MXN per m2/month)
- Table: Net Yield, 2011-2012 (%)
- Table: Terms Of Rental Contract/Leases - H112
- Industry Forecast Scenario
- Table: Forecast Rents (MXN per m2/month)
- Table: Forecast Net Yield, 2010-2017 (%)
Market Analysis - Retail
- Supply And Demand
- Rents And Yields
- Table: Historic Rents - 2011-2012 (MXN per m2/month)
- Table: Net Yield, 2011-2012 (%)
- Table: Terms Of Rental Contract/Leases - H112
- Industry Forecast Scenario
- Table: Forecast Rents - (MXN per m2/month)
- Table: Forecast Net Yield, 2010-2017 (%)
- Table: Retail Sales Indicators, 2009-2016
Market Analysis - Industrial
- Supply And Demand
- Rents And Yields
- Table: Historic Rents - 2011-2012 (MXN per m2/month)
- Table: Net Yield, 2011-2012 (%)
- Table: Terms Of Rental Contract/Leases - H112
- Industry Forecast Scenario
- Table: Forecast Rents - (MXN per m2/month)
- Table: Forecast Net Yield, 2010-2017 (%)
Forecast Scenarios
- Infrastructure Report
- Table: Mexico Construction And Infrastructure Industry Data, 2009-2016
- Table: Mexico Construction And Infrastructure Long-Term Forecasts, 2014-2021
- Construction And Infrastructure Forecast Scenario
- Macroeconomic Outlook
- Table: Mexico - GDP Contribution To Growth
Real Estate Risk/Reward Ratings
- Real Estate/Construction Risk/Reward Ratings
- Table: Real Estate Risk/Reward Ratings
- Business Environment Outlook
- Table: BMI Business And Operation Risk Ratings
- Institutions
- Table: BMI Legal Framework Rating
- Infrastructure
- Table: Labour Force Quality
- Market Orientation
- Table: Latin America, Annual FDI Inflows
- Table: Trade And Investment Ratings
- Table: Top Export Destinations
- Operational Risk
Competitive Landscape
Company Profiles
- Cemex
- Corporacion Moctezuma
- DINE SAB
- Empresas ICA
- Grupo Cementos de Chihuahua (GCC)
Demographic Data
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Full Table of Contents is available at:
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www.fastmr.com/catalog/product.aspx?productid=529430&dt=t
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at
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