August 2008 - Secretary Carlos Gutierrez Ruiz
FEATURED ARTICLE
Mexico's Real Estate Climate 2008
Secretary Carlos Gutierrez Ruiz, CONAVI
The housing sector has shown a significant reactivation during the first years of this decade, which has made of this industry a modern activity that is increasingly expanding.
Nowadays, three thousand companies are registered in this field, which contribute 2.4 percent of the GDP and 61.3 of the construction industry. Whereas, 10 years ago, the participation of the housing sector hardly reached 0.6 and 16.2 percent of these indicators, respectively.
The dynamics of the housing sector can be mainly understood by virtue of to the financial stability of the country, and the boost of the governmental authorities, which have improved the coordination amongst the national housing agencies; these factors have allowed, jointly with the construction industry, the generation of direct employment for 1.4 million of Mexicans, 10 percent of the population that pays social security dues.
Without doubt, 2008 will be a complex and difficult year, due to the recession in the United States and the instability of the international markets, but the conditions exist to reach the goals planned and to achieve, within the next years, one million of mortgage financings per year and a total of 6 million in the current administration.
Acting in joint manner, both public and private agencies are doing well; the figures and results up to this date allow to foresee that, in 2008, one million 324 thousand credits will be extended, from which 800 thousand will be used to purchase housing, whereas the investment during this term will register 281 billion pesos.
The soundness and stability of housing in Mexico has arisen the interest of both the officers of the industry and foreign investors.
Delegations from Spain, Colombia Guatemala, Turkey, Egypt, Colombia and Chile, amongst others, have traveled to Mexico in order to familiarize with the National Housing Program of President Felipe Calderón and the actions undertaken, as well as the successful experience in Mexico in this regard.
Likewise, teams of officers of the National Housing Commission have traveled to England, the United States and different Latin American countries.
Notwithstanding the instability of the international markets and the mortgage crisis in the United States, the housing sector in Mexico has continued with great energy. This industry keeps a good construction pace, particularly the one aimed to low-income people, considering the attention that President Calderon has given to economic housing through his subsidy program Ésta es tu casa (This is Your Home).
Therefore, taking into consideration the stable macroeconomic conditions in Mexico, the stable trend in the interest rates, the diversification in the housing offer and mortgage products designed by different financial intermediaries, we are able to consider that this is still a good time to purchase housing in our country.