Mexico City is booming. It will probably be the 7th richest city in the world within 5 to 10 years.
This will create many opportunities for developers, investors and individual property owners in this thriving city.
Just look at a map of the Americas and you will see that Mexico City in the center is a natural hub. It’s proximity to the United States and Canada along with easy access to the emerging markets of South and Central America are one factor. The greater metropolitan population of 21.2 million people (similar to New York City) helps fuel the economic growth.
Huge amounts of direct investment from foreign countries has been driving the real estate growth. PricewaterhouseCoopers estimates the annual growth to be 4.5% for the period of 2005 to 2020 which is the highest growth rate of the top 15 cities in their list of the richest cities and urban areas for 2020.
Mexico City currently has over 1,000 modern shopping centers and will add 100 more in the next two years as investments are made in the retail sector. In the office sector, Mexico City has 52 million sq ft of modern office space with another 52 million sq ft being developed over the next three years.
Mexico City offers many attractions beyond commerce. It is reported to have more museums than any other city in the world. The Museo Nacional de Antropologia is over 100,000 sq ft and is regarded as one of the best anthropology museums. Another great museum is the Museo de Arte Modern. And there are at least 200 more. There is also the symphony, operas, sports, parks, traditional markets and luxury shopping. (Future posts will tell much more about this fascinating city).
As with every city, there are problems. Mexico City has been known for years to have a pollution problem. However, the city has become a leader in reducing pollution levels. Some measures of pollution are as much as three times lower than they were 25 years ago. Traffic and parking are a problem but the public transportation system is excellent and constantly improving.
One last thought, the declining exchange rate of pesos to the dollar may impact retail growth, but at the same time, it makes Mexico very attractive to US citizens.