BY CHRONICLE STAFF
How will the U.S. sub prime crisis affect real estate in Mexico? How do experts view the outlook for real estate in Mexico? What sub-sectors will drive growth? What geographical areas of Mexico have the best prospects? What are the key challenges facing the real estate sector in Mexico? What makes Mexico different than other real estate markets in Latin America?
Latin Business Chronicle asked four experts to share their insight. Our panel includes:
- Pedro A. Azcué, President & CEO, Jones Lang LaSalle Latin America.
- Javier Lomelín Anaya, Director General, Colliers International, Mexico.
- Javier Marquina, Director, Latin America & Caribbean, CB Richard Ellis.
- Hector Sosa Herrera, Vice President, O'Connor Capital Partners.
Latin Business Chronicle: How will U.S. sub prime crisis affect real estate in Mexico?
Azcue: It’s had some effects in that some institutions in Mexico are also institutions being affected in the U.S. When Merrill Lynch takes a multibillion charge in the U.S., that will affect their business in Mexico. But Mexico is not directly tied to the sub prime crisis because the mortgages in Mexico were underwritten with a tougher standard than in the U.S. But…it will cut capital worldwide.
Sosa: The Mexican and the U.S. economies are highly intertwined. The U.S. credit crunch will certainly have some impact in Mexico, yet we have not seen much of this effect. It may trigger some upward adjustment in spreads...