Mexico Construction

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Chapter | Construction & Real Estate from The Report: Mexico 2018

Traditionally a barometer of a Mexico’s economic health, the construction sector saw investment slow in 2017 as a result of a dip in public spending on infrastructure works and uncertainty among private investors over the possible outcome of the renegotiation of the North America Free Trade Agreement. This could further push up the already rising costs of materials brought by the February 2018...

Driven by an ongoing process of economic opening since the 1990s, Mexico has established a solid macroeconomic base. Structural reforms have improved the country’s trade flows, helped to soften the impact of a gradual slowdown in hydrocarbons production and exports, and enabled manufacturing-led economic diversification and regional integration.


After years of steady growth, Mexico’s real estate sector is preparing for a period of moderately increased uncertainty over interest rates, inflation and trade. Despite some apprehension, sales continue and medium-term market fundamentals remain positive. Some property specialists say worries over inflation and a weaker peso may actually...


How do real estate investment trusts help facilitate access to the sector?


Mexico’s construction industry is changing gears in 2017. After recording GDP growth of 1.8% in 2016, the sector faces some short-term challenges. Austerity in public sector budgets has reduced the value of infrastructure projects. There are some macroeconomic concerns including the prospect of higher inflation and tighter interest rates. The...


About 90% of large companies present in Mexico secure their office space by renting, leaving just 10% owning their facilities. In 2016 most rents in central Mexico City ranged from $17 to $26 per sq metre, depending on the quality of the space. An estimate by Colliers International placed total office space inventory close to 8.3m sq metres....

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