Smaller Homebuilders in Mexico Set to Gain as Top Three Struggle Elinor Comlay - Reuters
go to original April 13, 2013

Unfinished apartments are seen on the outskirts of Mexico City April 12, 2013. (Reuters/Henry Romero)

MEXICO CITY - 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.

Smaller and medium-sized players such as Javer and Ara are now eyeing expansion as Geo , Homex and Urbi focus on tackling rising debt loads rather than increasing home sales.

Read the rest at Reuters

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!