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property values in mexico looking up: Cancun Mexico Forum

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property values in mexico looking up

Postby vanessacole on Fri May 16, 2008 12:19 pm

Real estate and business analysts are hailing the Mexican election victory of conservative Felipe Calderon as a coup for the economy and general prospects of Mexico - with Mexico property as a sector of the economy expected to boom under the Presidency of Calderon.

The reaction has already been seen in terms of a positive currency adjustment, confidence in the stock markets and in general consumer activity in Mexico’s property market.

One property expert who has offices in both the US and Mexico believes that the climate in the Mexican property market today is like that of the American real estate sector back in the 1940’s following the end of the depression. Bruce D. Greenberg believes that the property market in Mexico has been restricted for so long by poor standards, poor policy and a lack of clarity as well as restricted lending power and that all of these issues have had the cumulative effect of massively deflating the property market artificially. He sees the presidency of Felipe Calderone as bringing great economic success to Mexico and great interest in the Mexican property market in particular.

Greenberg is not the only analyst to favour Mexico at the moment; since the preliminary election announcement was made the Mexican economy has benefited and already many international investors and corporations who were taking a ‘wait and see’ approach to Mexico are making positive moves towards their entry into the country.

Some of the first into the market in Mexico have been global banking giants like HSBC and Deutsche Bank; it’s widely predicted that now the likes of Bank of America will be making their mark on Mexico and facilitating access to property in Mexico as an investment commodity for more people with their superior financing options.

The development of the mortgage and home loan market for those wishing to buy in Mexico has been slow and painful but all of a sudden, prior to the election, things were picking up apace and it is widely accepted that the policies of Calderon will be to the absolute benefit of the development of particular area of the economy.

A further boost for Mexico property is the fact that the US and Mexico signed a brand new aviation pact recently to allow far more flights between the two nations. The pact also opens up a number of new locations in Mexico to air traffic which broadens the base for property investors and makes the whole country far more accessible and far more cheaply accessible. Naturally enough this will boost tourism numbers, it will boost property investor numbers and it will make Mexico a more appealing location for those who were previously worried about accessibility.

Mexico property as a commodity is looking up and those who make a move quickly will likely reap the most impressive benefits.

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