Friday, September 30, 2022

Logo Central America Link

Mexico's top three homebuilders are struggling

Monday, April 15, 2013

Mexico's top three homebuilders, facing heavy debt burdens and holding land where Mexicans no longer want to live, will sell fewer homes this year, leaving a market wide open for smaller rivals or even private equity funds to snap up business.

Latin America's second-largest economy has a young population, high employment and a housing deficit of about 9 million houses but the biggest homebuilders misplayed that opportunity and overspent on land they are now struggling to sell.

Sales of Geo, Homex and Urbi's low-cost homes in sprawling developments far from offices and schools have tumbled in the last year as government policy has changed to support a trend among Mexicans to buy older houses closer to city centers.

Source: Reuters