ABSTRACT

Mexico is the country that presents a broader range of options, from banking resources to securitised mechanisms, and from US Real Estate Investment Trust (REIT)-like instruments to covered bonds. Although it must be pointed out that, the depth of capital markets in Mexico is still small if compared to Chile or indeed many other members of the Organization for Economic Development and Cooperation (OECD). This chapter reviews different lending options by analysing the micro-level financing systems, then the large and more formal residential mortgage sector in Mexico. Other financing options for real estate investment are also explained with two expert contributions, one explaining the Mexican REIT and another one presenting a general view of the Foreign Direct Investment market at regional level in comparison with other countries in South America. The chapter concludes with some notes on the long-term resilience of the local markets.