Mexico Land Development to Benefit from Streamlined Private Investment Processes

In recent decades, the development of the Mexico Land has been made easier and more profitable as a result of policies which have encouraged and facilitated private investment in the top real estate areas. A key attraction for buyers is the extent to which the infrastructure has been developed, making for a very high quality of life for non-Mexicans who build their dream home in Mexico, and supporting potential for high return for foreigners who invest in Mexico Land.

Early in October 2009, President Felipe Calderon announced plans to encourage private investment in infrastructure projects further by accelerating various parts of the process. The package of reforms seeks to modify six legal regulations related to construction industry and the involvement of private funds in that industry.

Included in the president's plan is an proposal for the creation of a Public-Private Partnerships Act. This measure in particular is aiming to attract private capital with a specialized legal framework.

Calderon said that costs would be reduced by 15% to 30% by eliminating administrative "bottlenecks" that currently do not permit full implementation of these contracts. In addition the government would give incentives, such as private infrastructure concessions up to 60 years.

As a result of implementing these reforms the federal government estimated that for 2010 private funds and other investment mechanisms would account for around 80 billion pesos (~ $6 billion dollars) in infrastructure development in the country and that by 2012 it would be just over 125 billion pesos (~ $10 billion dollars).

These reforms, while streamlining of processes of private investment and encouraging the trend to promote and facilitate private investment in infrastructure, will in turn promote investment in Mexico Land by offering stronger infrastructure support for this type of investment. The new measures are another step forward in providing funding for the continual growth and improvement in key real estate areas.

by: Thomas Lloyd