Lugar de Noticias Haynes and Boone
Luis Moreno and Cesar Ramírez of Haynes and Boone find out if development capital certificates will rescue real estate
The global financial crisis started to show its effects in the middle of 2007 and into 2008 and 2009. This is true more than ever in the real estate industry than in any other one. Around the world, stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems. Some countries emerged from the crisis better and faster than others and a contagious Mexico is trying to breathe.
The real estate industry in Mexico, following struggled to recover in 2009, but with little results, and the path to a full return to health is littered with land mines that could send the sector spiraling downward again, possibly upending the nascent economic revival. This has caused the outlook for the real estate industry in Mexico for the end of 2010 to be uncertain at best. However, there is light at the end of the tunnel. The CKDs, will hopefully help fuel the real estate industry back on track for a slow, but steady recovery in 2011.
Reprinted by permission of the International Financial Law Review. Originally published in September 2010. www.iflr.com. To read the full article click on the PDF linked below.