Real estate of starts

2013 introduced a coup that transformed the real estate industry in Mexico. The outcome is clear that there is a change in public housing policy of the country and seeks to institutionalize more sources capitalization is defined by the level of investment in government work this administration and the effect it will have tax reform. The truth is that the changes and losses that occurred this year will bring the potential for immediate opportunities.

This year the big construction of social housing as GEO, Homex and Urbi plummeted; but also says the mismanagement of the three, the main cause of their decline is a change to the policy of expanding housing. While in the past Administration the horizontal development of houses to the outskirts of metropolitan areas is encouraged, the government entered declaring a stop to this practice. Unfortunately, these companies, and many more, had made a constant practice of buying land reserves near urban areas with the expectation of future developments and to protect and Gaining price thereof; ended up losing a bet with severe consequences.

Current policy favors the vertical expansion of existing homes through permits, subsidies and credits. If this vertical expansion is accompanied by an improvement of the services that have already hosted zones, will be better for the environment, society and economy. In this last administration differs because it is easier and cleaner to require new buildings to have areas with services sue who enters an existing zone increase streets, drainage, electricity and access to public transport.

While reformers claim that the inclusion in the collection of income tax of properties over $ 3.7 million pesos only affect 2 percent richer country, this area is also the most attractive for developers and the secondary impact it has on the economy is anything. Then there are the indirect effects on the income of the middle and upper classes.

Finally, there is as yet unknown policy work be undertaken by the new administration. They certainly have the budget available, so the expectation is a recovery in public works at least to the levels of the past six years.