Mexico Housing - Good News!

Mexico has more good news, especially for investors or those that want to retire and still have a good return on their investment!

MUMBAI (Thomson Financial) - The Mexican housing market is poised for continued strong growth underpinned by a developing mortgage market, Fitch Ratings said in a report.

 Victor Villarreal, a senior director at Fitch Mexico, said the housing market in the country has been in a process of transformation over the past few years and has become one of the most dynamic industries in the Mexican economy.

He added macroeconomic stability in the last several years and support from government agencies has generated a favourable climate for providing mortgages and the purchase of new homes across all income segments in Mexico.

In a report titled 'Credit availability underpins homebuilder growth - challenges and risks remain,' Fitch said that during the last decade, more than 6 mln homes have been financed in Mexico and investment in the housing sector topped 223 bln pesos in 2006.

As of June 30, Mexican home lenders financed a total of 310,104 mortgages worth more than 103 bln pesos, and total mortgage debt to GDP is estimated at 8 pct, Fitch said.

Adriana Beltran, one of the authors of the report, said its is estimated that Mexico has a housing deficit of around 6 mln homes providing homebuilders opportunities for growth.

Fitch added it believes the Mexican market currently has an adequate liquidity level to continue funding the mortgage industry in the short term, despite the expectation that sector funding from overseas will decrease.

TFN.newsdesk@thomson.com