Mexico Real Estate Report 2016
BMI View: In the medium term, Mexico's commercial real estate sector is expected to benefit from a strengthening economy.
The growing service sector will drive demand in the office and retail markets, pushing rental rates up, while a robust manufacturing and logistics sector will support growth in warehousing real estate.
The economy in Mexico is one of the most stable in Latin America, and is forecast to maintain steady growth over the medium term, with real GDP growth expected to average at 3.7% a year between 2016 and 2019.
This growth will supported by the expansion of the manufacturing sector, with electronics and automotive remaining key sectors, particularly in Monterrey, and the growth of the services industry.
With all three sub-sectors that we cover (office, retail and industrial) expected to benefit from Mexican economic growth, we forecast rental rises across the commercial real estate market.
Mexico City will benefit from higher occupier demand in the office and industrial markets, while Guadalajara and Monterrey should see higher absorption levels in the industrial market, given the industrial base of their local economies.
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