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Mexico Resort Real Estate Update ………….
From The Settlement Company®
Welcome to our Third Quarter, 2013 newsletter.
Usually this time of year the real estate market is quiet. Following several very slow years, I am hearing about a slight recovery at this time in parts of the tourist zones. This is particularly true of more expensive properties. August saw an improvement in the U.S. real estate market.(see story below) which must become more healthy before any real improvement comes to Mexico
During the Quarter there have been several real estate forums. One of the largest and most successful is held annually in Guadalajara, with several others spread across the country.. Two major events will take place in the next Quarter. One is the annual Conference and General Meeting of the Mexican Association of Real Estate Professionals (AMPI) and the other the Annual Conference of the national Association of Realtors® (NAR)
Sales of U.S. Existing Homes Rise in August to Six-Year High
Bloomberg News excerpt
Sales of previously owned U.S. homes unexpectedly rose in August to the highest level in more than six years as buyers rushed to lock in interest rates before they rise further.
Purchases climbed 1.7 percent to a 5.48 million annual rate, the highest since February 2007, figures from the National Association of Realtors showed today in Washington.
For Migrants, New Land of Opportunity Is Mexico:
From New York Times
Andrea Bruce for The New York Times
CULTURE Performing Korean pop music in Mexico City. At least 12,000 Koreans are said to live in Mexico.
By DAMIEN CAVE
MEXICO CITY — Mexico, whose economic woes have pushed millions of people north, is increasingly becoming an immigrant destination. The country’s documented foreign-born population nearly doubled between 2000 and 2010, and officials now say the pace is accelerating as broad changes in the global economy create new dynamics of migration.
Country at a Crossroads
Articles in this series will examine whether Mexico can seize the opportunities offered by an evolving global economy.
Rising wages in China and higher transportation costs have made Mexican manufacturing highly competitive again, with some projections suggesting it is already cheaper than China for many industries serving the American market. Europe is sputtering, pushing workers away. And while Mexico’s economy is far from trouble free, its growth easily outpaced the giants of the hemisphere — the United States, Canada and Brazil — in 2011 and 2012, according to International Monetary Fund data, making the country more attractive to fortune seekers worldwide.
The new arrivals range in class from executives to laborers; Mexican officials said Friday that residency requests had grown by 10 percent since November, when a new law meant to streamline the process took effect. And they are coming from nearly everywhere.
Guillaume Pace saw his native France wilting economically, so with his new degree in finance, he moved to Mexico City.
Lee Hwan-hee made the same move from South Korea for an internship, while Spanish filmmakers, Japanese automotive executives and entrepreneurs from the United States and Latin America arrive practically daily — pursuing dreams, living well and frequently succeeding.
“There is this energy here, this feeling that anything can happen,” said Lesley Téllez, a Californian whose three-year-old business running culinary tours served hundreds of clients here last year. “It’s hard to find that in the U.S.”
The shift with Mexico’s northern neighbor is especially stark. Americans now make up more than three-quarters of Mexico’s roughly one million documented foreigners, up from around two-thirds in 2000, leading to a historic milestone: more Americans have been added to the population of Mexico over the past few years than Mexicans have been added to the population of the United States, according to government data in both nations.
Mexican migration to the United States has reached an equilibrium, with about as many Mexicans moving north from 2005 to 2010 as those returning south. The number of Americans legally living and working in Mexico grew to more than 70,000 in 2012 from 60,000 in 2009, a number that does not include many students and retirees, those on tourist visas or the roughly 350,000 American children who have arrived since 2005 with their Mexican parents.
“Mexico is changing; all the numbers point in that direction,” said Ernesto Rodríguez Chávez, the former director of migration policy at Mexico’s Interior Ministry. He added: “There’s been an opening to the world in every way — culturally, socially and economically.”
But the effect of that opening varies widely. Many economists, demographers and Mexican officials see the growing foreign presence as an indicator that global trends have been breaking Mexico’s way — or as President Enrique Peña Nieto often puts it, “the stars are aligning” — but there are plenty of obstacles threatening to scuttle Mexico’s moment.
Mexico Canada to boost alliance:
Upon the conclusion of the ninth annual meeting of the Mexico-Canada Alliance ( AMC), both countries agreed to provide more visibility to the Alliance as a flexible, and efficient strategy. AMC has both public and private particvpation… It promotes concrete cooperation between the two countries and aims to raise the level of competition in North America
Mexico’s Foreign Relations Minister, Sergio Alcocer Martinez and William Crosbie of Canada the alliance’s presidents held a talks to define a new vision for the organization in the coming years.
Martinez and Crosbie said that there is an enormous dynamism in the bilateral relations between the two countries. Canada will celbrate70 years of diplomatic relations in 2014, as well as 40 years of Canada’s Temporary Foreign Workers Program, 20 years of the North American Free Trade Agreement and 10 years of the Alliance. In 2004, trade between the two countries was only $ 164 million, but as of 2011, trade exceeded $ 24 billion. Canada is the fourth largest investor in Mexico.
Mexico aims high with investment in burgeoning aviation industry:
Rapid growth in the sector is evidence of Mexico’s determination to become one of the world’s top 10 aviation suppliers
Sky’s the limit … the Mexican aviation industry has registered 20% annual growth since 2006.
The Querétaro Aerospace Park, 200km northwest of Mexico City, is a mass of cranes and diggers. A new Aeroméxico and Delta Air Lines heavy maintenance facility – a joint investment costing $40m, with work for 3,000 specialist technicians – is due to open here shortly. Querétaro airport is just next door, with gigantic hangars built by Bombardier, Eurocopter and Safran, rearing up against the arid landscape dotted with cactuses.
Mexico is determined to become one of the world’s top 10 aviation suppliers. In 2005 Canada’s Bombardier was the first overseas firm to build a $200m factory on previously undeveloped land, transferring production here from Ireland and Japan. Since then it has spent a further $300m in Mexico. The 1,800-strong workforce manufactures parts for the Learjet 85, soon to be followed by components for the Global 7000 and 8000 series.
In February, Eurocopter, the latest arrival, opened a 12,000 sq metre facility that will employ 200 people by next year. The EADS subsidiary invested $100m to produce helicopter tail-booms and doors for Airbus A320 and A330s. It plans to invest $500m more over the next 15 years. “The future Airbus production unit at Mobile, Alabama [in the US], opens the way for major developments,” says Serge Durand, head of Eurocopter in Mexico.
Neither Airbus nor Boeing have settled south of the border yet, but they are encouraging their suppliers to do so. Among their number, the French conglomerate Safran is leading the way. In 2012 it opened an engine workshop at Querétaro and it is now Mexico’s largest aerospace firm, with 4,000 staff.
Meanwhile the French composite materials specialist Duqueine plans to open a factory, and two Spanish firms, Turbo Propulsores and Aeronova, have also been attracted to the area. So too has General Electric, with its largest R&D centre, employing 1,300 engineers.
But the aviation heavyweights are not only operating in Querétaro. In May, Safran opened a fourth facility at Chihuahua, near the US border. Brazil’s Embraer, the world’s third-largest aircraft manufacturer, and French equipment manufacturer Zodiac also have plans for a joint production facility in the area. The industry has seen 20% annual growth in Mexico since 2006.
“Our country is attracting the biggest share of aerospace investment worldwide,” says Carlos Bello Rocha, head of Mexico’s Aerospace Industry Federation (Femia). About 20 new projects are expected this year, worth $1.3bn. Aviation exports doubled between 2009 and 2012 to reach $5.4bn.
Femia forecasts that there will be 450 companies working in this field by 2020, representing 110,000 jobs and $12bn in export sales. “With 14% average growth projected for the coming years, Mexico will rank 10th among aerospace suppliers by the end of the decade,” Bello Rocha claims. “The country’s main asset is that it borders the US, the top market for commercial and military aviation. Being so close enables us to deliver parts in eight days at the most, compared with more than 20 in Asia,” says Alfredo Nolasco, spokesman for Bombardier Mexico.
This article appeared inGuardian Weekly, which incorporates material from Le Monde
Mexican Hotel News:
Mexican hotel real estate investment trust Fibra Inn is reportedly near an agreement with Wyndham Hotel Group to own and operate a portfolio of Wyndham-branded properties in Mexico. Wyndham reportedly has 30 properties and more than 4,000 rooms in Mexico. Fibra Inn recently acquired the 198-room Wyndham Casa Grande Monterrey and additional properties have already been identified for acquisition and conversion to Wyndham brands this year.
Fibra Inn said it is working on an agreement with InterContinental Hotels Group to establish the terms and conditions in which Fibra Inn will develop and / or acquire around 20 hotels in Mexico through franchise agreements to brand and operate hotels under the brands Crowne Plaza, Hotel Indigo, Holiday Inn, Staybridge Suites and Candlewood Suites. Fibra Inn currently owns seven Holiday Inn Express®, one Holiday Inn® & Suites and one Holiday Inn® in seven states in Mexico.
REALTORS® to Assemble in San Francisco:
This year’s Conference and Expo for the National Association of Realtors® will be held in San Francisco, city by the bay. With the U.S. market starting to recover and the industry becoming more global, attendance records are expected to be broken. It is anticipated that 28,000 REALTORS® will attend. This will include what will likely be the largest contingent ever from outside to the U.S. For example, last year for the first time ever a Chinese delegation came (30). This year it is expected to be double that number be at the Conference. The Mexican contingent is expected to be larger than last year. A CIPS Institute was held in Los Cabos last June. Several members of AMPI Los Cabos are expected to be at the CIPS breakfast to receive their certificates and pins.
Educational session will be held on a large range of topics. One will be Making Money With Mexico. Linda Jones Neil, CIPS, will moderate a panel with Mercy Duenas, relocation expert, Guillermo Salgado, current AMPI national president and Amber Neil cross border transactions specialist. They will deal with topics such as commercial, international, market segments, sales & marketing. Cameo appearances will be by Thomas Lloyd from Top Mexico Real Estate, Cancun and Julie Kershner from Sotheby’s in San Jose del Cabo.
Various international social events will allow for networking among realtors from around the Globe. Speaking at the General Session will be Hilary Rodham Clinton, former Secretary of State for the United States of America.
John K. Glaab, CIPS