Construction & Real Estate
From The Report: Mexico 2019
View in Online Reader

The country’s potential in this area is highlighted by its rank of 49 out of 140 countries in terms of infrastructure in the “Global Competitiveness Report 2018” published by the World Economic Forum. Despite this, between 2017 and early 2019 the sector faltered due to a slowdown in civil engineering projects and uncertainty about Mexico’s trade relationship with the US. Although uncertainty clouds the outlook for the national economy, opportunities exist at the local level. State and local governments have helped boost infrastructure investment and industrial development, and the dynamism of these industrial hubs is likely to continue to spur demand. According to industry insiders, after 20 years of significant economic growth and major investments in new infrastructure and multi-use developments, Mexico’s real estate sector is resilient enough to weather short-term concerns and uncertainties. This chapter contains an interview with Fernando Romero, CEO, FR-EE.

Articles from this Chapter

Overview

Foundation for the future: Building activity takes a pause as the government defines its ambitious policy agenda
OBG
plus

With infrastructure development identified as a driver for medium-term growth, construction is tipped to play a major role in the Mexican economy. The country’s potential in this area is highlighted in its ranking of 49 out of 140 countries in terms of infrastructure in the “Global Competitiveness Report 2018” published by the World Economic Forum (WEF). Despite this, between 2017 and early 2019 the sector faltered due to a slowdown in civil engineering projects and uncertainty about…

Interview

Social agenda: Fernando Romero, CEO, FR-EE, on infrastructure projects, new technologies and sustainable practices
OBG
plus

Interview:Fernando Romero How would you describe the outlook for the real estate and construction sectors, and what projects to you see contributing to Mexico’s development? FERNANDO ROMERO: Since the cancellation of the new Mexico City airport and the subsequent measures taken by the local government, the construction and real estate sector has been experiencing a phase of uncertainty. In addition to this, current trade tensions between China and the US – and the consequent global economic…

Analysis

Going green: Municipal and federal authorities turn to sustainable building
OBG
plus

Mexico is home to the largest urban population in Spanish-speaking Latin America, having 10 cities home to over 1m residents and over 100 cities with more than 100,000. As such, urban planning and an emphasis on sustainability and energy efficiency is necessary to ensure quality of life. Over the last decade Mexico has built itself to be a reference for emerging economies in the area of green and sustainable construction. In February 2019 the US Green Building Council (USGBC) announced Mexico…

Overview

Firm footing: With major retail and multi-use developments in the pipeline, the market is set to persevere in the face of short-term uncertainty
OBG
plus

While Mexico’s real estate market shows positive trends in a variety of segments, including residential, retail, industrial, office and tourism, overall 2018 was a challenging year for the sector. The transition of power to a new president, Andrés Manuel López Obrador, better known by his acronym AMLO, and the arrival of Claudia Sheinbaum, mayor of Mexico City, both of whom hail from the left-centre National Regeneration Movement party, introduced new risks and uncertainty relating to…

Overview

Rapid urbanisation and young, growing populations put pressure: on emerging markets to solve housing deficits Urban adaptation
OBG
plus

Urbanisation is a mega-trend redefining contemporary life in both developed and emerging markets across the world. This mass rural-to-urban movement of people and expansion of cities to absorb formerly isolated villages is a relatively recent phenomenon, at least in the developing world. According to the UN, in 1950, 751m people lived in urban areas; however, by 2018 this number had risen to 4.2bn, equivalent to roughly 55% of the world’s population. By 2050 the UN estimates that this figure will rise to 68%. This growth will not be distributed evenly, but rather disproportionately concentrated in the developing world, with high rates…

Overview

Rapid urbanisation and young, growing populations put pressure: on emerging markets to solve housing deficits Urban adaptation
OBG
plus

Urbanisation is a mega-trend redefining contemporary life in both developed and emerging markets across the world. This mass rural-to-urban movement of people and expansion of cities to absorb formerly isolated villages is a relatively recent phenomenon, at least in the developing world. According to the UN, in 1950, 751m people lived in urban areas; however, by 2018 this number had risen to 4.2bn, equivalent to roughly 55% of the world’s population. By 2050 the UN estimates that this figure will rise to 68%. This growth will not be distributed evenly, but rather disproportionately concentrated in the developing world, with high rates…