Mexico Set for Housing Boom, Real Estate Appraiser Predicts
 David Pittman - Tucson Citizen
| | Huge growth of housing projects like these for low income families, Ixtapaluca, MX. (helipilot at inorbit dot com) |
Mexico in 2006 is similar to the United States in 1940, a country set to embark on a post-depression housing boom.
That is the view of Bruce D. Greenberg, a real estate appraiser active in the United States and Mexico.
Greenberg believes the narrow election win for conservative Felipe Calderon as Mexico's president will mean the continuation of economic policies initiated by former President Vicente Fox.
He said the perpetuation of those policies will provide the country with the fiscal and monetary discipline needed to move forward successfully.
Greenberg - who operates offices in Tucson and Mexico City and satellite branches in the Mexican communities of Rocky Point, Los Cabos and Puerto Vallarta - said his appraisal practice began slowing about two months ago and is gearing back up since Calderon's apparent victory.
"Consumers were watching the election results closely, as were Wall Street and the Mexican business community," he said. "All are reacting favorably now that it's over."
While Calderon appears to have won the presidential race by a razor-thin margin over leftist Andrew Manuel Lopez Obrador, Mexico's special election court has until Sept. 6 to decide whether to certify the results.
A decade ago, Greenberg said, it was easy for people to go to a Mexican bank for a loan to buy a donkey or a tractor, but difficult to get a mortgage for a home. That is not the case today, and the election of Calderon will speed the pace of Mexico's modernization, he said.
Greenberg believes several large financial institutions will soon expand to Mexico.
"Watch for banks, such as Wells Fargo and Bank of America, to join Deutsche Bank, Citibank and HSBC," he said.
Greenberg, among the most active appraisers in western Mexico, also expects well-known real estate firms to become active in more areas of the country.
"ReMax, Century 21, Coldwell Banker and Prudential are common in ocean resort communities," he said. "Watch for their growth in the interior cities."
Greenberg expects Multiple Listing Services, which are in short supply in Mexico, to soon take root.
"I predict that Realtor associations and the MLS will grow enormously throughout the resort community corridors of Mexico," he said. "Besides Los Cabos and Puerto Vallarta, lenders from Wall Street will demand this service, along with other more sophisticated information data."
The state of Sonora was a voter stronghold for Calderon. Greenberg said Calderon's election means rapid growth in Sonora will continue.
"I think you'll see San Carlos become another growing area for second homes, similar to Rocky Point," he said.
David Pittman is a longtime Tucson Citizen reporter and columnist. He may be reached by email at dpittman@tucsoncitizen.com. |
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