Mexico's Calderon Says Housing Boom Slowing
 Noel Randewich - Reuters
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| | Megalopolis - Nezahualcoyotl (Oscar Ruiz) | | |
Mexico City - Mexican builders will invest 8 percent more in the recently booming housing sector in 2008, President Felipe Calderon said Monday, the smallest rise in years as the industry hits a government target.
Lenders authorized a record 1.16 million mortgages last year, putting developers on track to reach the government's goal of 6 million homes built and sold by 2012, Calderon told housing industry members in a speech.
"This year we expect 281 billion pesos ($26 billion) in investment in the sector and more than 1.2 billion credits," Calderon said.
Mexico's housing industry has grown explosively for much of this decade, fueled by improved economic stability and a push by the government to end a shortage of millions of homes.
But leading Mexican builders Homex (HOMEX.MX: Quote, Profile, Research), Geo (GEOB.MX: Quote, Profile, Research) and Urbi (URBI.MX: Quote, Profile, Research) have warned they will tone down growth to between 10 percent and 18 percent in 2008 because of shortages of land reserves, lack of infrastructure and delays in building permits.
"We want to promote housing, but do it through through ordered urban planning," Calderon said.
Last year, builders increased their investment in the housing industry by 16 percent, Calderon said.
The U.S. housing slump and lending crunch have not spread to Mexico, where most homes cost less than $40,000 and measure little more than 60 square meters (200 square feet).
Banks in Mexico do not lend to clients with blemished credit histories, although many homebuyers have little experience with banks.
Since taking office in 2006, Calderon has intensified a focus on providing housing for Mexico's poorest families.
Calderon said the government would give subsidies this year to help 135,000 very low-income Mexicans make down payments on homes, up 15 percent over 2007.
(Editing by John Picinich) |
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