BY CHRONICLE STAFF
The second home market in south of the border will be negatively affected by the U.S. sub prime crisis, but Mexico’s real estate sector in general will continue to do well, experts say.
"The second home market (from potential U.S. buyers) would definitely feel some impact," says Hector Sosa Herrera, a Mexico-based vice president at O'Connor Capital Partners, a U.S.-based real estate investor.
Pedro A. Azcue, President & CEO, Jones Lang LaSalle Latin America, concurs. "The sub prime thing will spook buyers short-term," he says. "But … that [will] settles down [and] you can’t change the huge dynamics taking place in the U.S. of all those baby boomers. If you are looking for a place and you’re 65 you can’t wait another 10 years."
Nevertheless, he does acknowledge that it will have an impact on capital. "It’s had some effects in that some institutions in Mexico are also institutions being affected in the U.S," Azcue says. "When Merrill Lynch takes a multibillion charge in the U.S., that will affect their business in Mexico."
But real estate brokers and investors are generally bullish about the outlook for Mexico's property market. "Demand for space in all sectors is good, supply is controlled, and investor appetite remains high," says Javier Marquina, Director, Latin America & Caribbean, CB Richard Ellis.
Azcue agrees. "There’s lots of money moving down [and] lots of activity," he...
Keywords: Guadalajara, Mexico City, Monterrey, Mayan Riviera, Puerto Vallarta