• PROJECTS: The total number of new home-building projects across Mexico fell 28% in 2019 amid economic uncertainty among developers due to the economic slowdown and the end of federal subsidies for the industry by the new López Obrador Administration.
• NUMBERS: According to new government data, the total number of residential projects registered in 2019 was 188,000 while in 2018 was 263,000. Only in the northern state of Nuevo León, the number of home-building projects fell by 12,000 between 2018 and 2019.
• FALL: “(Developers) do not want to run the risk of reaching inventories we had before. They are thinking that there will still be an important fall contraction in demand”, said Óscar Elizondo, who was president of Nuevo Leon’s residential construction chamber.
• FORECAST: Last November, the International Monetary Fund (IMF) confirmed it expects Mexico to post a 0.4% GDP growth for 2019. Yet, other forecasts see it hovering around 0%. The IMF says that growth could accelerate up to 1.3% by the end of 2020.
