After difficult years for the construction and real estate development industry, investment is no longer concentrated in Mexico City, but rather in the State of Mexico and Quintana Roo, according to the Association of Real Estate Developers (ADI).
The state governed by Morena candidate Delfina Gómez is receiving capital for the construction of industrial warehouses serving the logistics sector, as well as for housing construction, since the cost of land is lower than in the nation’s capital, allowing developers to offer more affordable houses and apartments.
The results of the National Survey of Construction Companies by Inegi (National Institute of Statistics and Census) indicate that the State of Mexico had construction projects worth 2.905 billion pesos last March, surpassing Mexico City, which had 2.692 billion pesos.
11 CONSTRUCTION COMPANIES DOMINATE THE MARKET IN THE VALLEY OF MEXICO
Last year, just 11 companies produced 90% of the houses and apartments located in the Valley of Mexico.
This figure is half of the 21 construction companies that dominated this market in 2018, according to an analysis included in the most recent quarterly economic report by the National Workers’ Housing Fund Institute (Infonavit).
The theory states that concentration tends to raise prices above the levels that would be achieved in an environment of greater competition.
This is because companies with greater market power can influence prices to maximize their profits.
Furthermore, a more concentrated environment can reduce the number of properties available on the market, according to the analysis by Mitzi Yael Camba and Luis Gerardo Zapata.
MAZATLÁN REQUESTS SUPPORT TO STOP THE DECLINE IN TOURISM
The Mazatlán Chamber of Commerce, Services, and Tourism (Canaco-Servytur) is requesting support from all three levels of government and the private sector to stem the decline in visitors to the beach center and surrounding municipalities, as it puts jobs and the well-being of the region at risk.
The president of this business organization, Francis Cázares Oliveros, said that her members are working hard to mitigate the negative effects of insecurity in Sinaloa, which exploded to unprecedented levels last September due to the dispute between criminal groups.
This situation damages the image of Sinaloa, including Mazatlán, the state’s main tourist destination.
Source: vanguardia
