Organization for EconomicCo-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.
Reality Vs. a Mistaken Perception Fuente SOFTEC The world has become Wealthier during the last century
Total U.S. Market:Estimated at $928.2 BillionEstimated International Sales $82.5 Billion Fuente realtor.org
Now the most important factor influencing the purchase is location followed by price. Location Fuente realtor.org
Percent of U.S. Transactions by Non-Resident ForeignersFuente realtor.org They are more likely to decide to purchase on Easter, Summer & Christmas holidays
27% of Realtors®during last 12 months reported having worked with international clients Fuente realtor.org
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
Fast growing cities percent wise in México for 2030 . . Nuevo Laredo 55% Los Cabos 25% . . . . . . . . Xalapa 25% . . . Coatzacoalcos 55% . . . . . La Paz . . Villahermosa 55% . . . 50% . .. Durango 50% Tepic 55% . . .. . Puerto Vallarta 25% . ... . . . . . . . Metropolitana Edo. Mex. 40% . Colima Chetumal 50% . . . 25% Distrito Federal 40% . Ixtapa 25% Acapulco 55% Huatulco 25%Fuente SOFTEC, INEGI Y CONAPO
Mexico s urban growth,Measured in family houses Fuente SOFTEC, INEGI Y CONAPO The average Mexican family is conformed by 4.3 members
1. Ciudad de Middle and High México 2. Monterrey Income Level 3. Guadalajara Cities of Mexico 4. Tijuana 5. León 6. Mexicali 7. Chihuahua 8. Saltillo 9. Aguascalientes 10. Cancún 11. Querétaro 12. Toluca 13. Juárez 14. Puebla 15. Torreón 16. Tampico 17. CuernavacaFuente SOFTEC, INEGI Y CONAPO
In México AnnualRental housingdeficit is 500,000homes representing ahuge opportunity niche.
“The secret of business is to know something nobody else does” Aristotle Onassis
The Numbers that Drive the North American Real Estate Markets
Number of sold Houses 447,010 Canada 4,940,000 United States 1,300,000 MéxicoFuente CREA.org, Realtor.org, AMPI.org e INEGI
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 2,600,000Number 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 8.80Fuente CREA.org, Realtor.org, AMPI.org e INEGI 9.23 7.88
Median House PricesFuente CREA.org, Realtor.org, AMPI.org e INEGI México United States Canadauscy$108,550dls. uscy$173,000dls uscy$340,000dls
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 $42,768.00Fuente CREA.org, Realtor.org, AMPI.org e INEGI
Months of Supply Canada 3.9months United States 9.4months México urban Mkt. 5.3months México 2 Home Mkt. ndFuente CREA.org, Realtor.org, AMPI.org e INEGI
GDPGrowth 2013 Forecast 3.5% Canada 2.0% United States 4.0% MéxicoFuente CREA.org, Realtor.org, AMPI.org e INEGI
Inflation 1.6% Canada 1.6% United States 3.0% MéxicoFuente CREA.org, Realtor.org, AMPI.org e INEGI
Regional Positive Growth ExpectationsFuente 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
Unemployment 7.6% Canada 9.6% United States 5.1% MéxicoFuente CREA.org, Realtor.org, AMPI.org e INEGI
Annual Jobs Generation Canada requires 250,000 jobs United States requires 2 400,000 jobs Plus 1 200,000 lost jobs MéxicoFuente CREA.org, Realtor.org, AMPI.org e INEGI requires 1 000,000 jobs Green Technology a key strategic engine
Fuente CREA.org, Realtor.org, AMPI.org e INEGIAppreciation rate4% Canada4% United States4-7% Mexico
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
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 dramaticallyFuente AMPI.org Metroscubicos, e INEGI
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
Mortgage Interest Rate Comparison Cost of money is all time low 5.20% Canada 5.05% United States 8.50% MéxicoFuente CREA.org, Realtor.org, AMPI.org e INEGI
MortgagedHouses60% Canada67% United States11% MexicoFuente CREA.org, Realtor.org, AMPI.org e INEGI
Mortgage Evolution in the USA Compared to MéxicoFuente SOFTEC, Realtor.org, AMPI.org e INEGI Only 11% of the Mexican Houses have a mortgage
Mexican Mortgage Growing DemandFuente CREA.org, Realtor.org, AMPI.org e INEGI
Paid Mortgages in MéxicoFuente SOFTEC, AMPI.org e INEGI 3 million people paid off their mortgages and they are ready to move on
Mexico´s International reserves $163 billion dollars after lending80 billion to theEuropean UnionFuente BANXICO
Mexican Middle Class EvolutionFuente SOFTEC, y GEA 53.5 % of the Mexican families are Middle class &annual earnings from us$15,000dlls to us$50,000dlls
Income acquisition power growth GDP GDPFuente SOFTEC, y GEA Income growth in Mexico exceeded all forecasts
GDP/Capita Launch Fuente SOFTEC, y GEAIn 2030 Mexican Families Income acquisition power will grow to US$23,000 average
México s Income Growth 22.0% High Income 53.5% Middle Income 24.5% Low IncomeFuente SOFTEC, y AMAI
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
Value addedproposition of Real EstateSpecialization
AMPI IS key in ALAAI & CILAThe Union ofReal EstateAssociations ofLatin America
Current Housing Deficit in Latin AmericaParaguay 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
Expected Population Growth inCities 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 2,350,000Fuente SOFTEC A Real Estate Opportunity
For each dollar invested in private construction The Mexican government invests another dollar in public infrastructureFuente SOFTEC,
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 ValueFuente AMPI.org
2013construction ofthe bullet trainbetweenQueretaro andMexico CityFrench, Japanese andMexican joint venture from 2013-2023
Tourism in Mexico Latin-America Central America Argentina, Uruguay & Paraguay Brazil Chile, Bolivia & Peru Colombia & Ecuador Venezuela Dominican Republic Bahamas Netherlands Antilles CaribbeanMexico has 34% Market Share Fuente RCI
50% of International flights of Latin America happen to be in Mexico Mexicos 7 strong connectivity airports• Mexico City # 1• Cancun # 2• Guadalajara• Monterrey• Tijuana• Los Cabos• Puerto Vallarta
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
Mexican Tourism22,200,000 International Visitors66,100,000 National Visitors325,000 Hotel roomsFuente SOFTEC y FONATUR
Tourism in major DomesticCoastal destinations ForeignCancún & Ribiera maya Fuente RCICozumelHuatulcoAcapulcoIxtapa ZihuatanejoManzanillo & B NavidadPuerto VallartaMazatlánLos CabosLa PazLoretoGuaymas / San CarlosRocky PointRosarito/Ensenada
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
Market ShareMexican Tourist Composition Hotel 32.0% Studio 17.9% 1 Bedroom 32.6% 2 Bedroom 14.9% 3 Bedroom 02.4%Fuente RCI
Hotel IndustryFuente SOFTEC, y FONATUR English, French, Spanish, American, Indian and Mexican hotel chains have expansion plans
Mexican Tourist Real Estate Portfolio:• Native American cultures• Luxury & Boutique• Natural wonders• Colonial towns• New concepts• Biodiversity• All inclusive
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
28% Air France increase of French tourist to México Announced that they will continue during 2012 Increasing Routes to Mexican destinationsFuente Periódico Reforma
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 CabosFuente AMPI.org y FONATUR
Mexico is important tobaby boomers estateand assets portfolio,because inheritance taxin our country is 0%compare to 60% inthe United states
What is the most likely to happen in MexicoFuente SOFTEC
Forbes magazine revealsThat US & Canadiansare moving to México for;1. Economic opportunities2. Weather3. To Meet people4. Quality of life5. Lifestyle.Now illegal immigrationto the United States ismainly from CentralAmericans.
México offers the opportunity to start your own business withless competition, continue working regardless your age or work rhythm. The cost of living and medical expenses are cheaper.Fuente SOFTEC
U.S. Citizens Reside in Every single State of MéxicoFuente SOFTEC
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
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
Importance of high visibility and contacts was reported by Realtors® Fuente EALTOR.ORG55% of clientswere referredto them throughfriends,previous clients,international anddomestic referrals.20% percent ofclients are obtainedthroughwebsite/onlinelistings. Client recommendation is key
43% of the Real EstateMarkets in Mexico aretourist and second homerelated.30% of the Real Estateprofessionals are fromall over the world.The relationships andnetworking with their clienteleand Real Estate professionalshave generated and launchedimportant internationalinvestments throughout México
80% of Transnational Corporate Officesof 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.
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.
Información elaborada por Colliers International. Market share Office Segmentation
Market Share Available Office SpaceInformación elaborada por Colliers International.
Market Share Office Demand During the last 4 years the office market has grown dramatically. And its expected to continue. 2008-2012Información elaborada por Colliers International.
Office Market Lease PricingInformación elaborada por Colliers International.
The Financial corridor of Reforma in Mexico city.2000 million dollar are beinginvested in 13 new skyscrapersAdding 1,000,000 squaremeters to this specific market.Mixt use projects combineoffice, housing, hotel andcommercial. This is equivalentto the total amount of officespace in entire Colombia.
Reforma´s new corporate profile started its evolution in 2004, Just Reforma office by itself will have moreoffice space than Colombia, Panama and Costa Rica.
Some of the New Corporate Offices in Reforma Avenue1. Reforma Capital2. New York Life Insurance3. BBVA World Corporate HQ4. The 412 Tower5. MAPFRE Corporate Offices6. Reforma Tower7. Reforma 5098. Diana Tower9. Santander Corporate HQ10. Puerta Reforma
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.
• 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.
• 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 AmericaInformación elaborada por Colliers International.
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.
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, MexicoNew Office Building Información elaborada por Colliers International.
Market Share MexicoCommercial 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 80,000,000Información elaborada por Colliers International.
13 NEW Car Plants more coming soon Celaya, Gto.Irapuato, Gto. México State México State Silao, Guanajuato Puebla, Pue San Luis PotosiAguascalientes Mexico State Cuernavaca, Mor. Puebla, Pue Tlaxcala Mexico City. DF
Market Share Industrial Properties MéxicoInformación 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
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 marketInformación elaborada por Colliers International.
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.
Información elaborada por Colliers Internation 2012 NicheCommercial Segments Growth Market +16.3% Specialty stores + 9.0% Auto service stores + 6.5% Department stores
226,000m² shopping centerscapacity distributes as follows: 52% Mexico Metropolitan area 29% Central region 07% Northwest region 06% Southeastern region 06% North regionInformación elaborada por Colliers International
Market Share Commercial Activity 37% 25% 14% 09% 08% 07%Información elaborada por Colliers International
44 New Commercial centers in constructionwith 890,622,000 m² lease capacity. 52% Metropolitan 20% Central region 20% Southeast 06% Northwest 02% North *Only 4 of these are expansion projectsInformación elaborada por Colliers International
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 trendInformación elaborada por Colliers International
Price trend of RetailRecycled historicalplaces such asdowntown Mexico cityIn the street of Madero.Converted in to apedestrian corridor hasdeveloped a price increasein this kind of locations.Investors have made ita national trend.Información elaborada por Colliers International
Dragon Mart: Puerto Morelos, Q. Roo. Designed to promote Chinese products and Services to the Americas markets. The first was built in Dubai. • Corporate • Commercial • Cultural • Distribution center of 1.2 Km² longInformación elaborada por Colliers International.
We forecast that China will invest: Baja California Sur, Sinaloa, Guerrero Veracruz y Tamaulipas
Lets break mental barriers and lets work together
Market to MarketNAR & AMPI ProgramNetworking and closing transactionswith those Real Estate Professionals where there is a flow of buyers that are coming and going to invest in to specific markets
Market to Market Program Case scenario A Fact Business proposal Mexican National Houston Association Prospect Buyers of Realtors signs afrom Monterrey, Mexico collaboration agreement are coming to Houston with the Monterreyto invest in Real Estate AMPI chapter Increase your market share and the number of transactions
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 agreementare coming to Cozumel with the Houstonto invest in Real Estate Association of Realtors Take advantage you have a partner in México and diversify your income
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 CertificationsAn agreement that generates 5.Research business benefits among Real Estate relationships between both Professionals to develop markets. professionals skills and 6.Develop channels thatbusiness among themselves. motivate collaboration among real estate professionals
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
Trade Mission toPlaya 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.
International Director Course in office Mercy Management DueñasSept 6-9 2013, Dallas, TexasVicepresident 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 ofRivas Ornelas Marketing & property tour expertise Market to Market Program
Sales and Marketing are the driving forces that move the world
“ Business is like riding a bicycle. Either you keep moving or you fall down.” Frank Lloyd Wright
If you haventvisited Mexico latelyit´s because you been watchingtoo much TV