Construction & Real Estate
From The Report: Mexico 2015
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As the recent constitutional reforms start to have an impact on the Mexican economy, construction activity is poised to grow. Total investment in the construction sector reached $148bn in 2014, according to the Mexican Chamber of Construction, of which 75% was accounted for by private investment. Though construction continues to be a volatile activity, the sector remains a key component of the Mexican economy, accounting for 8.1% of GDP in 2014. Meanwhile, a growing population and urban development in key cities across the country has put housing development at the forefront of government policy. The 2013 housing crisis, which saw the collapse of three of the biggest homebuilders in Mexico, has seen the government rethink subsidy allocation and other incentives, a move set to help revive the housing sector and reduce the country’s housing deficit, currently estimated at 15.3m homes.

This chapter features an interview with Fernando González Olivieri, CEO, Cemex.

Articles from this Chapter

Overview

Building blocks: Private sector investment coupled with focused infrastructure spending is driving growth
OBG
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As the constitutional reforms passed in 2013 start to have an impact on the Mexican economy, construction activity is poised to grow. In recent years many of the most relevant sectors have been characterised by a cautious approach, caused primarily by preoccupations with the last presidential elections as well as the anticipation of regulatory changes across the board. That said, the energy, telecoms and homebuilding sectors are showing a return to a positive investment dynamic. This is reflected…

Analysis

Raising the ceiling: New government plans set to improve access to quality housing
OBG
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A growing population and urban development in key cities across the country has put housing development at the forefront of government policy. But the 2013 housing crisis, which saw the collapse of three of the biggest homebuilders in Mexico, has led the government to change the focus of this policy. A rethink of subsidy allocation, coupled with tax breaks and other incentives, is helping to revive Mexico’s housing sector. Home construction activity is important to reducing the country’s housing…

Interview

Infrastructure ahead: OBG talks to Fernando González Olivieri, CEO, Cemex
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Interview:Fernando González Olivieri Do you foresee delays with infrastructure projects in Mexico if low oil prices persist? FERNANDO GONZÁLEZ OLIVIERI:We believe that the budget cuts instituted for 2015 will not affect the construction industry, or at least not the segment with which Cemex is concerned. The projects affected are the Querétaro and Mérida railway lines, and since these do not require large amounts of cement and take time to prepare, we were not considering them in…

Overview

Putting the house in order: The housing sector gets a boost from investment and new rules, while business real estate continues to thrive
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Still reeling from the recent crisis that shook Mexico’s main homebuilders to the core, the country’s real estate sector continues to expand despite the challenges. A resolution of the failed housing development model, which aimed at expanding availability on the outskirts of the capital, is now pushing home development closer to central districts of Mexico City. New government measures and incentives to refocus the national housing strategy promise to inject energy into the sector. Far from…

Analysis

Trusting the market: Real estate investment trusts continue to attract investment to non-residential segments
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Mexico’s real estate sector has been witnessing the growth and impact of real estate investment trusts (REITs), known locally as Fideicomiso de Infraestructura y Bienes Raíces (FIBRAs). These are vehicles for real estate portfolio management which rely on the issuing of real estate certificates to investors. As of early 2015, nine different REITs were active in the Mexican market, investing in and managing property portfolios in office, retail and industrial real estate, as well as hotel units.…