Construction began the year with a hasten growth rate, slightly higher than 5% in the first two months.
According to figures from the National Institute of Statistics and Geography (INEG), building has had a start of year with a hasten growth rate, slightly higher than 5.0% in the first two months.
However, its performance has been diversified, because industrial and commercial building has grown strongly, unlike building of housing that reports a setback.
According to an analysis of the Studies Service of BBVA Bancomer, the good performance of construction is mainly based on productive construction.
'Commercial, industrial and office construction shows annual growth rates of 22.4%, 38.7% and 12.3% (in February), respectively. In addition, it increased its participation in the production value associated to building, which went from 31% to 34%, gaining ground to housing construction. Housing decreases again, this time 7% in annualized rate; mainly in its component of multifamily housing'.
Housing weakness can be seen in the quarterly report of the five major housing construction companies (GEO, HOMEX, URBI, ARA and SARE) all listed in the BMV, which in the first quarter of 2012 sold altogether 33,022 units, which amounted to a negative growth rate of 5.7%.
GEO was the only one that reported growth, by increasing 11.9% the sold units, Urbi presented stagnation in its sales and other companies showed a contraction.
Regarding the value of revenues, in the first quarter of 2012 grew annual 0.55%, which is mainly due to the higher price of sold housing.
Figures are consistent with indicators as the beginning of works reported to the Registro Unico de Vivienda, which by February still show a relative stagnation in this activity (- 4% annual in the first two months).
For analysts of the financial institution, the increase in subsidies for housing by the federal Government, in close to 50% compared to 2011 (from 5.5 billion pesos to $8.3 billion), suggests favorable conditions for a recovery in housing construction, especially in the first half of the year (it is expected exercise 70% of resources of the year, during this period), although this will depend in the end of factors such as the liquidity of the constructors to start projects and the level of inventories, among others. 'We will continue anticipating that construction of housing would reverse its negative trend in the coming months'. (Ricardo Vazquez – Mexican Business Web)
