Real Estate Continues to Rise in Mexico, Unaffected By Fears of US Protectionist Pledges
Surbhi Jain - Frontera News
go to original
May 20, 2017



Among the emerging markets (EEM) (VWO), Mexican real estate has been doing exceptionally well so far this year. Mexican real estate equity that is part of the Guggenheim Emerging Market Real Estate ETF (EMRE) portfolio is up 17.6% YTD. PLA Administradora Industria, with a 39.3% return YTD (as of May 5) has been the top performing Mexican real estate company in this regard.



... From a valuation perspective, Mexican real estate equity is relatively inexpensive at 8.65 times price-to-earnings. Mexican real estate equity also comes with an attractive dividend yield of 6.36%.

We maintain a positive outlook on the real estate market in Mexico (EWW), given the following:

  1. The over subsidy in the Mexican real estate market that was prevalent before the 2013 crash, is now down to normal levels. The Mexican economy, in general, is recovering, despite the Trump administration’s protectionist pledges and lower oil (USO) prices. This is a good sign for real estate which gains with the overall health of an economy.

  2. We see a supply-demand mismatch in the real estate sector in Mexico. There are signs of pent-up demand which should provide ample opportunity to real estate developers.

  3. Mexico’s middle class continues to grow, and this rapidly rising segment coupled with urbanization should provide a sustained boost to this Latin American (ILF) economy’s real estate sector.

Read the rest at Frontera News

Photo: CBS News

We invite you to add your charity or supporting organizations' news stories and coming events to PVAngels so we can share them with the world. Do it now!

You Can Make a Difference

Coronavirus - How You Can HelpIf you would like to donate directly to the non-profits in Puerto Vallarta and Riviera Nayarit, here are some suggestions you may want to consider to help our local communities in this time of greatest need.

Coronavirus - How You Can Help

Local News

Discover Vallarta-Nayarit

Banderas Bay offers 34 miles of incomparable coastline in the states of Jalisco and Nayarit, and is home to Puerto Vallarta and Riviera Nayarit's many great destinations.