The real estate sector sees Mexico with optimism

Within the framework of its annual event Expo Desarrollo Inmobiliario. The Real Estate Show 2023the Real Estate Developers Association (ADI) held the event investment opportunities, through the conference “Investing in the future”, in which the speakers Guadalupe Phillips, Director of ICA; Simón Galante, President of AMEFIBRA and Emilio Romano, General Director, Bank of America Merrill Lynch, Mexico, in addition to Javier Barrios, President of the MIRA Council, who served as moderator.

According to Guadalupe Phillips, at ICA they are considered great optimists of Mexico, not only because they are a Mexican company that works in the country, but because they think that there are great needs where there are opportunities, which gives them the opportunity to create great projects and make them real.

When talking about the areas of opportunity in the short and medium term, the ICA director explained that these exist in mobility –and specifically– in the integration of the North American region, whose growth they consider will not stop. In addition to the Pacific area, not only in the tourist part, and the southeast, by the Mayan Train.

For his part, Simón Galante, explained that Mexico has the opportunity to become the largest exporter in the United States due to the issue of transportation, proximity and labor; although he clarified that the issue is “what are we going to do about it”, for which he recommended “stop asking ourselves what others are going to do” and rather focus on “what are we going to do”.

In this regard, Emilio Romano commented that, in the case of Bank of America, they view the country quite positively, since “we are, without a doubt, the emerging country in the best economic and political situation”, due to public finances. healthy, due to the fact that the GDP debt has not grown, the strong peso and the growth of the minimum wage, among other factors.

However, he clarified that some of the problems that persist in Mexico have to do with logistics (where airports and highways have to work, in addition to having water), energy (where there are energy deficiencies), people’s training, and the rule of law (related to the issue of violence).

Regarding the segments of the real estate market that look attractive to invest in next year, the general director of BofA mentioned “the entire part of industrial real estate development”, from which a spillover is derived in the part of neighboring hotels, and all the part of surrounding services, as well as a second level in the Bajío area.

Also the tourist part, which has positioned itself even more for North American tourism, both for its services and for its beaches, proximity and rates. And another segment has to do with housing, for which there is a lot of demand, in addition to offices, when the corporations of the offshoringRomano explained.

The three pillars of the ADI

At the end of the conference, Jaime Fasja Amkie, President of the ADI, thanked the speakers and highlighted the importance of the industry for the development of the national economy, whose contribution represents 16% of the national GDP, in addition to having an impact on 48 branches and generates thousands of jobs throughout the country.

The executive pointed out that, despite the complicated economic outlook derived from challenges such as inflation, increases in interest rates and the risks of a possible recession derived from the war between Russia and Ukraine, crises represent opportunities, so “it is It is necessary to rethink the objectives and draw new routes to follow to strengthen and consolidate ourselves as one of the great supports of national economic development”.

He mentioned that, with this objective, the ADI developed a comprehensive and long-term strategy based on three pillars: 1) the strengthening of the association at the national level, 2) the use of more sustainable practices and 3) the use of the political and economic situation, given the global disruption of supply chains, and trade differences between China and the US.

He added that it is essential to have the correct conditions that allow the industry to consolidate its investments, which is why it required having clear public policies, long-term legal certainty, and agile and simplified administrative processes that give certainty and confidence to national investment. and foreign; what is possible to achieve with the unity of authorities, developers, suppliers and industry leaders, he concluded.