2. Organization for Economic
Co-operation & Development
Comisión Económica
para América Latina
All 4 Share a common vision:
Mexico is living a great moment
to do all the required reforms
to become an economic power.
3. Reality Vs. a Mistaken Perception
Fuente SOFTEC
The world has become
Wealthier during the last century
5. Now the most important factor
influencing the purchase is
location followed by price.
Location
Fuente realtor.org
6. Percent of U.S. Transactions
by Non-Resident Foreigners
Fuente realtor.org
They are more likely to decide to purchase on
Easter, Summer & Christmas holidays
7. 27% of Realtors®
during last 12 months reported having
worked with international clients
Fuente realtor.org
11. Mexican Government
Goals 2012-2018
1. Strengthen security
and safety
2. Equal
Opportunities for all
3. Raise the Quality of
Education
4. World
Responsibility
Fuente COPARMEX.org
5. Mexican prosperity
13. Mexican Population Forecast
Fuente INEGI, SOFTEC y CONAPO
• Mexico Had 112 million people in 2010
• Median age is 26
• Population will stop growing by 2040
15. Mexican Household Formation
Fuente INEGI, SOFTEC y CONAPO
Mexico will be in its peak household
formation rate between 2012 - 2015
16. Mexican Population Pyramid
Fuente SOFTEC
In 2030 Mexico will have the largest workforce
This is the Mexican Demographic Bonus
17. Mexican Household
Growth by Type
Fuente SOFTEC
México s Households will grow from
28.6 million in 2010 to 39.2million in 2030
18. Mexican Real Estate Composition
Segment Market % Avg. Price Conformation
1 Low Income 22.50% $25,000.00 $5,625.00
2 Affordable 35.50% $35,000.00 $12,425.00
3 Middle Class 19.00% $75,000.00 $14,250.00
4 Residential 15.00% $175,000.00 $26,250.00
5 Luxury 8.00% $625,000.00 $50,000.00
Median House 100.00% US$CY
$108,550.00
Fuente INEGI y AMPI.org
19. What have we done in the past?
Area Bedrooms Bathrooms
Fuente SOFTEC
Now, it is not enough. Client knowledge,
uniqueness and surrounding information
is key in the decision process.
20. What do we know about
prospective buyers?
Fuente SOFTEC
Niche specialization is key more than ever
21. Real Estate
Inventory
in Mexico
Properties 50 million
Housing 35 million
Commercial 15 million
Fuente INEGI
25. 10 Real Estate State Laws
promoted by AMPI
Fuente AMPI.org
2013 Status
10 States with Real Estate Legislation
Lobbing States for Real Estate license
AMPI ®
La UNIÓN que da PRESTIGIO
26. 10yr. Average Family Mobility
14% Vacant homes for this purpose in Mexico
Fuente SOFTEC
27. 95%
will be Urban Population
Growth. The 2nd home
Markets will nurtured by
the National and
International Markets
38. Number of sold Houses
447,010 Canada
4,940,000 United States
1,300,000 México
Fuente CREA.org, Realtor.org, AMPI.org e INEGI
39. The Real Estate Markets of North America
Canada USA México
Total of house sales 2012 Total of house sales 2012 Total of house sales 2012
447,010 4´940,000 1,300,000
Both sides of transactions Both sides of transactions Both sides of transactions
894,020 9´880,000 2,600,000
Number of CREA® Members Total Number of Realtors Total of Real Estate Agents
101,606 1´070,000 330,000
Average Number of Closed Average Number of Closed Average Number of Closed
Transactions Transactions Transactions
8.80
Fuente CREA.org, Realtor.org, AMPI.org e INEGI
9.23 7.88
40. Median
House
Prices
Fuente CREA.org, Realtor.org, AMPI.org e INEGI
México United States Canada
uscy$108,550dls. uscy$173,000dls uscy$340,000dls
41. AVG Median Average
Country
Sold Price Income dls
Canada 8.8 $340,000dls $149,600.00
USA 9.23 $173,000dls $79,839.00
Mexico 7.88 $108,550dls $42,768.00
Fuente CREA.org, Realtor.org, AMPI.org e INEGI
42. Months of Supply
Canada
3.9months
United States
9.4months
México urban Mkt.
5.3months
México 2 Home Mkt. nd
Fuente CREA.org, Realtor.org, AMPI.org e INEGI
43. GDPGrowth
2013 Forecast
3.5% Canada
2.0% United States
4.0% México
Fuente CREA.org, Realtor.org, AMPI.org e INEGI
44. Inflation
1.6% Canada
1.6% United States
3.0% México
Fuente CREA.org, Realtor.org, AMPI.org e INEGI
45. Regional Positive
Growth Expectations
Fuente CREA.org, Realtor.org, AMPI.org e INEGI
3.5% GDP - 1.6% Inflation = + 1.9 Growth for Canada
2.0% GDP - 1.6% Inflation = + 0.4 Growth for United States
4.0% GDP - 3.0% Inflation = + 1.0 Growth for México
46. Unemployment
7.6% Canada
9.6% United States
5.1% México
Fuente CREA.org, Realtor.org, AMPI.org e INEGI
47. Annual Jobs
Generation
Canada
requires 250,000 jobs
United States
requires 2 400,000 jobs
Plus 1 200,000 lost jobs
México
Fuente CREA.org, Realtor.org, AMPI.org e INEGI
requires 1 000,000 jobs
Green Technology a key strategic engine
49. A
Consolidated Cities
Mexico City Metropolitan Area, Guadalajara, Monterrey,
Acapulco, Tijuana, Querétaro y Veracruz.
• Housing supply is low and demand is high.
• Stable price growth. 4% Constant positive equity.
• Urban recycling, growth is a little bit complicated
• Average New house M2 value $700dls.
• Average New Apartment M2 value $2000dls.
• Average Used house M2 value $600dls.
• Average used Apartment M2 value $1500dls.
Fuente AMPI.org Metroscubicos, e INEGI
50. B
Promising Cities
Tlajomulco de Zuñiga, Toluca, Los Cabos, La Paz,
Aguascalientes, Cancun, Riviera Maya, Leon y Culiacan.
• Good investment for long term purposes (10yrs).
• Stable price growth. 4-5% Constant positive equity.
• Construction of new developments,
• Average Urban House M2 value
$500dls.
• Average Urban Apartment M2 value $850dls.
• Average Resort House & Apartment vary dramatically
Fuente AMPI.org Metroscubicos, e INEGI
51. C
Ideal Cities to Invest
La Paz, Hermosillo, Ciudad Juarez, Angelopolis,
Morelia, San Luis Potosi, Metepec, Villahermosa
• Cities will to grow significantly in mid term (5 yrs.)
• Stable price growth. 6-7% Constant positive equity.
• Implementing Urban and master planning
• Average New house M2 value $530dls.
• Average New Apartment M2 value $700dls.
* La Paz & Metepec Real Estate portfolio cost more.
Fuente AMPI.org Metros cúbicos, e INEGI
52. Mortgage Interest Rate
Comparison
Cost of money is all time low
5.20% Canada
5.05% United States
8.50% México
Fuente CREA.org, Realtor.org, AMPI.org e INEGI
59. Mexican Middle Class Evolution
Fuente SOFTEC, y GEA
53.5 % of the Mexican families are Middle class &
annual earnings from us$15,000dlls to us$50,000dlls
60. Income acquisition
power growth
GDP
GDP
Fuente SOFTEC, y GEA
Income growth in Mexico
exceeded all forecasts
61. GDP/Capita Launch
Fuente SOFTEC, y GEA
In 2030 Mexican Families Income acquisition
power will grow to US$23,000 average
62. México s Income Growth
22.0% High Income
53.5% Middle Income
24.5% Low Income
Fuente SOFTEC, y AMAI
63. Prosperity for Mexico 2012-18
Conditions to become an Emerging Economic Power
1. Raise the standard of the Mexican human resources due
to the demographic bonus taking the most advantages of
this privileged condition to generate opportunities.
2. Value added proposition due to the healthy economy,
territorial advantages through strategic infrastructure
developments of private and public investments.
3. Create the right atmosphere that business demands
where the macroeconomic stability is starting point.
Increasing productivity helps the workers to earn more
money without generating inflation, raising companies
competitiveness with programs stimulate productivity.
Fuente COPARMEX
67. Current Housing Deficit
in Latin America
Paraguay 43%
Dominican Rep 41%
Panama 39%
Colombia 37%
Mexico 34%
Brazil 33%
Argentina 32%
Venezuela 29%
Uruguay 26%
Chile 23%
Costa Rica 18% Mexico is 8,920,000 Short
68. Expected Population Growth in
Cities at the America´s for 2030
1. Sao Paulo 10,300,000
2. Mexico City 8,500,000
3. Rio de Janeiro 6,100,000
4. Tijuana 4,500,000
5. Bogotá 3,800,000
6. Monterrey 2,600,000
7. Guadalajara 2,350,000
Fuente SOFTEC
A Real Estate Opportunity
69. For each dollar invested
in private construction
The Mexican government
invests another dollar in
public infrastructure
Fuente SOFTEC,
70. Urban and Master Planning Revolution
Tlajomulco de Zuñiga Del Valle Mexico City
Non recyclable blocks Regular, Reusable Blocks
40% Infrastructure 15% Infrastructure
50% is the Plot Value 20-25% is the Plot Value
Fuente AMPI.org
71. 2013
construction of
the bullet train
between
Queretaro and
Mexico City
French, Japanese and
Mexican joint venture
from 2013-2023
73. Tourism in Mexico
Latin-America Central America
Argentina, Uruguay & Paraguay
Brazil
Chile, Bolivia & Peru
Colombia & Ecuador
Venezuela
Dominican Republic
Bahamas
Netherlands Antilles
Caribbean
Mexico has 34%
Market Share
Fuente RCI
74. 50% of International flights
of Latin America
happen to be in Mexico
Mexico's 7 strong connectivity airports
• Mexico City # 1
• Cancun # 2
• Guadalajara
• Monterrey
• Tijuana
• Los Cabos
• Puerto Vallarta
75. Getting a list of all the direct flights to your city
will determine where your prospect investors
are coming from and going to buy Real Estate
77. Tourism in major Domestic
Coastal destinations Foreign
Cancún & Ribiera maya Fuente RCI
Cozumel
Huatulco
Acapulco
Ixtapa Zihuatanejo
Manzanillo & B Navidad
Puerto Vallarta
Mazatlán
Los Cabos
La Paz
Loreto
Guaymas / San Carlos
Rocky Point
Rosarito/Ensenada
78. Market Share
Tourist Ocean Side Markets
Acapulco 28.4%
Cancún 31.2%
Cozumel 02.4%
Huatulco 02.4%
Ixtapa 04.3%
Los Cabos 06.7%
Manzanillo 03.3%
Mazatlán 09.9%
Puerto Vallarta 11.3%
Fuente RCI
83. Fuente SOFTEC y FONATUR
Second homes market is booming. FONATUR is
building the largest project ever in Playa Espíritu,
Sinaloa. Even larger than the Riviera Maya
84. 28%
Air France
increase of
French tourist
to México Announced that
they will continue
during 2012 Increasing Routes
to Mexican destinations
Fuente Periódico Reforma
85. Canadian entrepreneurs
are the most important
investment group in the USA .
In México they represent
3.4% of the foreign direct
investments and actively
invest in second homes.
Mazatlán, Manzanillo
Puerto Vallarta, Mérida
Barra de Navidad, Oaxaca
San Miguel Allende, La Paz
Campeche y Los Cabos
Fuente AMPI.org y FONATUR
86. Mexico is important to
baby boomers estate
and assets portfolio,
because inheritance tax
in our country is 0%
compare to 60% in
the United states
87. What is the most likely to
happen in Mexico
Fuente SOFTEC
88. Forbes magazine reveals
That US & Canadians
are moving to México for;
1. Economic opportunities
2. Weather
3. To Meet people
4. Quality of life
5. Lifestyle.
Now illegal immigration
to the United States is
mainly from Central
Americans.
89. México offers the opportunity to start your own business with
less competition, continue working regardless your age or work
rhythm. The cost of living and medical expenses are cheaper.
Fuente SOFTEC
91. In México
2 million of US Citizen
reside permanently &
over 2 million US &
Canadians live for
periods that range
between 2-6 months in
winter time.
They are taking
advantage of our
cultural heritage,
people opportunities,
weather, lifestyle and
our land.
Fuente INEGI
92. Social Networking
between
48 to 62%
of your leads come from our
sphere of influence
Are you using a CRM?
And Facebook?
Fuente AMPI.org
93. Importance of high visibility and
contacts was reported by Realtors®
Fuente EALTOR.ORG
55% of clients
were referred
to them through
friends,
previous clients,
international and
domestic referrals.
20% percent of
clients are obtained
through
website/online
listings.
Client recommendation is key
94. 43% of the Real Estate
Markets in Mexico are
tourist and second home
related.
30% of the Real Estate
professionals are from
all over the world.
The relationships and
networking with their clientele
and Real Estate professionals
have generated and launched
important international
investments throughout México
96. 80% of Transnational Corporate Offices
of Latin-America are located in Mexico
70% México City
16% Monterrey
06% Guadalajara
08% Tijuana,
Querétaro,
Puebla, León,
San Luís Potosí,
Ciudad Juárez,
Hermosillo,
Toluca, Mérida &
Aguascalientes
Información elaborada por Colliers International.
97. Market Share
Office Space
Mexico city 10 corporate office
areas there is a total inventory
of 6.5 million m² composed by
A+, A & B types.
Información elaborada por Colliers International.
99. Market Share
Available Office Space
Información elaborada por Colliers International.
100. Market Share
Office Demand
During the last 4 years the office market has grown
dramatically. And its expected to continue.
2008-2012
Información elaborada por Colliers International.
101. Office
Market
Lease
Pricing
Información elaborada por Colliers International.
102. The Financial corridor of
Reforma in Mexico city.
2000 million dollar are being
invested in 13 new skyscrapers
Adding 1,000,000 square
meters to this specific market.
Mixt use projects combine
office, housing, hotel and
commercial. This is equivalent
to the total amount of office
space in entire Colombia.
103. Reforma´s new corporate profile started its evolution
in 2004, Just Reforma office by itself will have more
office space than Colombia, Panama and Costa Rica.
104. Some of the New Corporate
Offices in Reforma Avenue
1. Reforma Capital
2. New York Life Insurance
3. BBVA World Corporate HQ
4. The 412 Tower
5. MAPFRE Corporate Offices
6. Reforma Tower
7. Reforma 509
8. Diana Tower
9. Santander Corporate HQ
10. Puerta Reforma
105. A recent study done by
Colliers International
reveals a consistent
long term expansion
plans of investments of
the largest developers
and investment funds
on emerging countries,
developing corporate
offices, commercial
developments,
industrial parks, tourist
projects, and
residential projects of
all different scopes.
Información elaborada por Colliers International.
106. • Currently the highest demand for commercial
sites due to the economy is in México and
Colombia
• In México there 593 commercial developments
in operation during 2013, 53 additional
commercial complexes were built.
• In metropolitan cities 35 of these projects the
anchors stores include Wallmart, Chedraui,
Soriana, Cinepolis and Home depot.
Información elaborada por Colliers International.
107. • in Brazil new shopping centers are in process
of construction and International luxury brands
are opening up mainly in cities where
international soccer world cup 2014 will be held.
• Chile is the has the most steady and dynamic
real estate investments of South America
Información elaborada por Colliers International.
108. Peru received in 2011
$260,000,000dlls and in 2012
received Us$326,000,000dlls
in commercial investments.
With an inventory of 55
shopping centers and 11 in
process of construction.
Due to their excellent
economic performance
Investments are coming
steady mainly from Chile.
Panama has 83 shopping
centers in construction
process but prices has only
increased in 3% due to the
moderate demand.
Información elaborada por Colliers International.
109. In Colombia,
Costa Rica, Peru,
Chile, Panama,
and Mexico there is
a steady growth due to
the demographic
bonus and healthy
economic government
policies and
management
generating a
dynamic engine
behind the
growth in Latin
America.
Guadalajara, Mexico
New Office Building Información elaborada por Colliers International.
110. Market Share Mexico
Commercial Real Estate
• Shops in shopping
centers 21300
• Shopping Center
Area 19,100,000m2
• Office Buildings 740
• Commercial office
space 7,100,000m2
• Industrial parks 330
• Covered warehouse
capacity 80,000,000
Información elaborada por Colliers International.
111. 13 NEW
Car Plants
more coming soon
Celaya, Gto.
Irapuato, Gto.
México State México State Silao, Guanajuato Puebla, Pue
San Luis Potosi
Aguascalientes Mexico State Cuernavaca, Mor. Puebla, Pue
Tlaxcala Mexico City. DF
112. Market Share
Industrial Properties México
Información elaborada por Colliers International.
•Demand is very high
•44% are class A
•56% are class B
•29% are located in
Mexico City and
metropolitan area
•1600 properties larger
than 2000m2 add up to
18,694,956m², only 95
properties available
113. Market Share Mexico
Industrial Warehouse
251,000 m² were closed in
purchase & lease transactions
during the 2nd quarter of 2012.
17% “Class A” warehouses
$3.20dls/m² to USD $8.30dls/m²
83% “Class B” warehouses
$2.20dls/m² to USD $6.47dls/m²
* The monthly price difference is mainly due
to location. 3.6% is available in the market
Información elaborada por Colliers International.
114. Commercial
Market
Información elaborada por Colliers International
• Strong expansion in all kinds of commercial centers.
• Brand new concepts have being developed.
• Investors are remodeling historical buildings and
recycling their use.
115. Información elaborada por Colliers Internation
2012 Niche
Commercial Segments Growth
Market +16.3% Specialty stores
+ 9.0% Auto service stores
+ 6.5% Department stores
116. 226,000m² shopping centers
capacity distributes as follows:
52% Mexico
Metropolitan area
29% Central region
07% Northwest
region
06% Southeastern
region
06% North region
Información elaborada por Colliers International
117. Market Share
Commercial Activity
37%
25%
14%
09%
08%
07%
Información elaborada por Colliers International
118. 44 New Commercial centers in construction
with 890,622,000 m² lease capacity.
52% Metropolitan
20% Central region
20% Southeast
06% Northwest
02% North *Only 4 of these are
expansion projects
Información elaborada por Colliers International
119. Market Share
Retail conditions
• Demand for retail space at fashion malls is higher.
• Recovery signs for more than 25 months
• Confidence index reflects growth in retail sales.
• Power centers and fashion malls are the trend
Información elaborada por Colliers International
120. Price trend
of Retail
Recycled historical
places such as
downtown Mexico city
In the street of Madero.
Converted in to a
pedestrian corridor has
developed a price increase
in this kind of locations.
Investors have made it
a national trend.
Información elaborada por Colliers International
121. Dragon Mart:
Puerto Morelos, Q. Roo.
Designed to promote
Chinese products and
Services to the America's
markets. The first was
built in Dubai.
• Corporate
• Commercial
• Cultural
• Distribution center of
1.2 Km² long
Información elaborada por Colliers International.
122. We forecast that China will invest:
Baja California Sur, Sinaloa, Guerrero
Veracruz y Tamaulipas
123. Let's break
mental
barriers
and
let's work
together
124. Market to Market
NAR & AMPI Program
Networking and closing transactions
with those Real Estate Professionals
where there is a flow of buyers
that are coming and going
to invest in to specific markets
125. Market to Market Program
Case scenario A
Fact Business proposal
Mexican National Houston Association
Prospect Buyers of Realtors signs a
from Monterrey, Mexico collaboration agreement
are coming to Houston with the Monterrey
to invest in Real Estate AMPI chapter
Increase your market share
and the number of transactions
126. Market to Market Program
Case scenario B
Business proposal
Fact
The AMPI Chapter of
Successful
Real Estate Professionals
entrepreneurs
of Cozumel signs a
from Houston, Texas
collaboration agreement
are coming to Cozumel
with the Houston
to invest in Real Estate
Association of Realtors
Take advantage you have a partner in México and
diversify your income
127. Recommended path
1.Sign the agreement of
collaboration between 2
markets that share interests.
2.Endorse the agreement to
commit to work in conjunction.
3.Course: How to do business
in México or the United States.
4.TRC & CIPS Certifications
An agreement that generates 5.Research business
benefits among Real Estate relationships between both
Professionals to develop markets.
professionals skills and 6.Develop channels that
business among themselves. motivate collaboration among
real estate professionals
128. Market to Market Mexico´s Markets
1. Aguascalientes
Program 2. Angelopolis Cholula
3. Chihuahua
Texas Markets 4. Ciudad de México
• Abilene 5. Coatzacoalcos
• Amarillo 6. Cozumel
• Austin 7. Culiacan
• Brownsville 8. Guadalajara
• South Padre 9. Irapuato
• Corpus Christi 10.Matamoros
• Greater El Paso 11.Metro Edo. México
• Houston 12.Monclova
• Lubbock 13.Monterrey
• Greater Fort Worth 14.Morelia
• Greater McAllen 15.Nuevo Laredo
• MetroTex Dallas Regional 16.Reynosa
• San Antonio 17.Tampico
• San Marcos 18.Villahermosa
129. Trade Mission to
Playa del Carmen
May 2013
A great networking
opportunity for Texas
Realtors to meet AMPI
Real Estate Professionals
to generate and
strengthen your
international business
opportunities.
130. International
Director
Course in office
Mercy
Management Dueñas
Sept 6-9 2013, Dallas, Texas
Vicepresident
Real Estate Texas Congress Taught by a
Lic. Velia networking, Courses during 4days, prestigious Firm
Amparo How to do business in USA, with14 offices &
Recruiting, Retention, Management, 67 years of
Rivas Ornelas
Marketing & property tour expertise
Market
to
Market
Program