FEBRUARY 2013 |
www.opp-connect.com Letter from Mexico
Despite hardship, both economical and otherwise, Mexico has continued to move forward in real estate and is becoming attractive to investors
A
ll sectors have been affected by the global crisis and the real estate in Mexico has
been no exception. Unlike some other countries, though, this sector has struggled to maintain its forward drive despite the circumstances because it’s a vital necessity for the population. The development of housing is the blood of the real estate sector. According to INEGI (National Institute of Statistics and Geography), Mexico has become a magnet for real estate buyers. Mexico is now one of the 12 most important emerging economies in the world. The country has been transformed through reforms that contribute to a stable macroeconomic environment. We lead the rest of Latin America as the country less prone to economic risks. Currently, the population is being transformed by rapid growth (similar to the U.S. during the seventies) of disposable income and greater access to credit for the middle class. This has helped Mexico be considered as an
attractive investment destination – in particular when it comes to acquiring property or investing in real estate or construction for housing development. Since the 1995 crisis, the
homebuilders have entered the market and begun the rise of industrial parks. Despite national crisis, the real estate sector reached a privileged position.
“Mexico is now one of the 12 most important emerging economies in the world”
Mexican real estate developers and
professionals become world class and one of the great examples is the case of Santa Fe in Mexico City. The construction of buildings with LEED certifi cation, the development of shopping centers and logistics parks demonstrated great success. In recent years, despite the violence that the country has experienced on a widespread level and the effect it has
had on the real estate development, there is optimism in the direction of the real estate sector, primarily by government actions that have managed to minimize the problem. Many real estate buyers are investors, who want not just one building but many. Furthermore, many real estate projects are supported by public and private funds, which through the years have done their work in professional and effective ways. However, with over 100 million people, and 40% of them below the poverty line, according to offi cial statistics, the construction of affordable housing is big business in Mexico, making this industry a lucrative business for investors. The goal now is to promote investment, applying a smart property management by the private sector and a competitive and effective state planning without neglecting sustainable development.
Another interesting market is the
second-home sector that has been growing as the economy has. The “baby boomers”, both Mexican
LETTER FROM MEXICO & EGYPT | 47
José Angel González Cervantes is the CEO of Soluciones Inmobili- arias, a property advisor fi rm based in Mexico.
52 + 744 469-8641
www.solucioninmo.com a.gonzalez@solucioninmo.com
Americans and Europeans, are an attractive business for investors and developers mainly in resorts like Acapulco, Cancun, Riviera Maya, Puerto Vallarta, Los Cabos and San Miguel Allende.
Mexico is consolidated in the
international real estate market as an attractive investment option for its vast territory, its strategic location, coastal, climate and economic growth.
Letter from Egypt
Egypt has gone through a period of unrest, but the tourism industry remains a large one. Jennette Bradbury sheds some light on the matter
A
s I sit at the end of the day having a quiet drink on our private promenade in Luxor,
peace is everywhere. A fl ock of Egrets fl y over, a Kingfi sher is hovering, you can hear a mosque in the distance calling for prayer, a Nile cruise boat fl oats past with actual tourists on top watching the glorious sunset over the amazing river Nile. You cannot help but refl ect on the Egypt that is portrayed in the media. Is Egypt really as bad as the media suggests? It would take a better person than me
to really answer this question. Egypt is a complex country, desperate
to do better for the country and its people. With over 80 million people, the majority under the age of 40, it is hard to govern to meet their needs. In the past 30 years the population has nearly doubled. In 2008 Egypt weathered the
international world fi nancial crisis better than most countries. It was an emerging country and was doing well. A lot of foreign money was invested in industry and tourism and Sharm el Sheikh had become one of the top 10 winter sun
resorts in the world. Egypt needs tourism as it affects so
many lives and families. It is not just a question of hotels and places to see and visit. It is the production of food, producing bottles for water, bottling water, production of sheets and towels for the tourist sector etc. This is a huge industry – one which Egypt must, in these times, do its utmost to protect
“Egypt is a complex country, desperate to do better for the country and its people”
and grow. Over the past fi ve years all the tourist airport terminals in Egypt have been replaced with new terminals, making it easier for tourists to reach their destinations. Egypt Air express was born to fl y people around Egypt as it is such a vast country. For example, it can take you over fi ve hours to drive from Cairo to Sharm el Sheikh. Now you can fl y there in under an hour. There has been much speculation
that now the Muslim Brotherhood are running the country they will not want tourism. To date, there is nothing to substantiate this. The 25th January is now appearing in
the Egyptian calendar as the anniversary of the revolution, which we all hope will pass quietly. The main opinion in Egypt appears to be one of ‘we have had enough of protests’. Mainly, they are optimistic for the future of Egypt and want to work together for a better country. Egyptians are extremely proud people
and proud of their country and their heritage. They have a civilisation that is over 7,000 years old and an amazing history.
There are so many exciting and
different places of contrast to visit you will have a wonderful time here and the Egyptian people are very friendly and hospitable. Egypt is only four-and-a-half hours
from the UK and there are many airlines that fl y direct. The Red Sea resorts are very exciting and full of life with amazing corals, colourful fi sh with clear blue seas and beautiful beaches.
In the morning I will go down to
have my coffee on the promenade watch the fi shermen in their small boats and refl ect how Luxor countryside has not changed since biblical times and how happy the people look on their carts pulled by donkey’s in this place previously known as ‘Thebes’ – and plan my European work schedule for the day!
Jennette Bradbury is the Managing Partner at Egyptian Experience. They specialise in building and develop- ing properties in Sharm El Sheikh,
Hurghada and Luxor.
jennette@egyptianexperience.co.uk
(002) 0227020723
www.egyptianexperience.co.uk
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