The Mexico Market:
Tribase has targeted markets in specific countries including Canada, USA, Mexico, France. The current focus is on the tremendous demand for affordable housing in Mexico.
Mexico is the world’s 10th largest economy and Canada’s fifth-largest export destination. With a young and growing population of more than 104 million (2004), Mexico’s economy offers abundant opportunities for builders of new homes. In the building products and construction sector, the market is estimated at US$7.2 billion (2006), with imports estimated at 40% of the total. The import market is expected to grow 10% over the next two years.
Highlights of the Mexican construction industry:
- In 2003, the approximate value of construction market products was estimated at US$6.2 billion, $2.2 billion directly from abroad, represented by approximately 9000 suppliers.
- Mexico is already confronted by a major deficit, evaluated in 2000 at 4.2 million units. The need for new residential construction is thus considerable, particularly in the North.
- Demand for new housing has increased significantly since the 1990s. High growth in population segments aged 30 and older is forecasted to contribute to the need for some 800,000 households annually by 2010.
- Low-cost and prefabricated housing initiatives and projects are a priority for the 32 Mexican States, as well as the Federal government.
- The Government of Mexico has mandated the creation of 6 million mortgages credits over a five year period. Each mortgage is backed by a well-rated financial institution.
- Despite widespread loan guarantees for buyers, there is little or no capital available to developers of affordable communities, therefore creating the need for turn key solutions.
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