Capital: Mexico City
Language(s): Spanish (Official)
Population: 112.4 million
Total Area: 1,972,550 km2
GDP (PPP): 2012 estimate
Total: $1.759 trillion
Per capita: $15,312
Currency: Mexican peso
Mexico is bordered by the United States to the north and Belize and Guatemala to the southeast. Mexico is about one-fifth the size of the United States.
A lack of adequate housing is one of Mexico's most serious problems. Within the cities the federal government has built multiunit housing projects, but urban populations have increased more rapidly than new units can be constructed, and economic difficulties have reduced the funds available for new construction. Although substandard housing is more visible in urban areas, living conditions are also unhealthful in some rural areas. In virtually all urban areas, peripheral squatter settlements are a major feature of the landscape. Rural migrants, as well as members of the urban underclass, build makeshift housing, often of used or discarded materials, on unoccupied lands at the edges of cities. These colonias initially lack the most basic urban services (water, electricity, sewerage), but most evolve over time into very modest but livable communities.
Mexico's housing market is heading towards recovery, despite slower economic growth in the US, whose demand dominates the Mexican economy. House prices in Mexico were up 4.48% during the year to Q3 2011 (1.07% in real terms), according to the Sociedad Hipotecaria Federal (SHF). Similarly, average house prices in the Affordable-Entry segment of Homex, a major developer, rose 1.9% q-o-q to Q3 2011. Prices in the Middle income segment were up by 0.6%.
Gross rental yields in Mexico are moderately good, though they would appear to have declined during the year 2010. The Global Property Guide's house price figures, which in Mexico are based on asking prices primarily for coastal areas, are not really an adequate substitute for good-quality, fully-funded official statistics – but no such statistics exist for Mexico. The Mexican situation is also unusual in that we have concentrated on coastal properties, mostly houses, making it particularly hard to be sure we are getting an accurate picture.