playaperro
El Pirata
ROCKY POINT SHIPWRECKED
December 2011
Article stolen from local newspaper
The housing crisis in America, the lack of infrastructure and insecurity have affected the Sonoran destination
By: Nallely Ortigoza and Rolando Chacon
Reforma newspaper Taken
The former Paradise real estate in Puerto Penasco, Sonora, is now practically abandoned and the construction of new housing developments, completely stopped.
After the boom that lived between 2001 and 2007-years that were built more than 3 000 houses, including 30 luxury condominium projects, today this resort faces a drop in sales of this type of housing more than 70 percent.
This is because, experts say, both the EU housing crisis as insecurity and lack of infrastructure.
Currently, the buildings have depreciated as much as 60 percent from their levels before the crisis, said Jonni Francis, member of the Coldwell Banker real estate in Puerto Peñasco.
In fact, although the total inventory housing is about 25 000 units and that 650 properties in the residential segment are for sale, barely able to market 15 per month, said Richard Savino, president of the Mexican Association of Real Estate Professionals in Puerto Peñasco.
"When the economy worsened in America was very difficult because all of our buyers come from there, so they are not buying, "he said.
Richard Kiy, president of the International Community Foundation and author of a study of U.S. retirees in Mexico, agreed that the fall demand for properties in Puerto Peñasco is due to the housing crisis in America.
Having tied its economy to the market in Arizona and Nevada, mainly in Puerto Penasco caused a devastating effect, as the bulk of its customers live in the two states most affected by the U.S. housing crisis.
Omar Tirado, reservations manager of the firm Ocean Real Estate, said at the beginning of the crisis, many Americans who had purchased condos in the port fell into bankruptcy and were forced to sell their properties. Even some, in despair, cut their prices, which led to a cascading effect.
"If you want to compete in the market, you have to match the prices, and some have fallen 50 percent or more, even 70 percent" said Tirado.
Because of this, at least three projects were left half-built and three are in foreclosure.
But this has not only affected the housing sector, as room occupancy decreased from 65 percent in 2007 to 35 percent in 2011, and prices of the rooms fell 40 percent, according to the Mexican Association of Hotels and Motels.
In the case of restaurants, sales were down between 40 and 50 percent, estimated Mario Zazueta, regional vice president of Sonora and Sinaloa in the National Chamber of the Restaurant Industry and Seasoned Foods.
Francis relates that when comparing the year 2005, before the start of the housing crisis, from 2011, it shows a drop in sales relatively low, 3 per percent, but revenue fell 37 percent due to plummeting prices.
By comparing the new properties that are offered in Puerto Peñasco notice the drop in construction.
In 2005, Coldwell Banker offered until November 112 new properties, but now is 49 and their value in 2011 is only 20 percent of the value of offering 6 years ago.
"This building was thus, inconclusive, and already has well over four years", said Juan, the caretaker of a condominium complexes such Resort, "and there was no sale, everything was closed and the owners said 'let's go', we do not know when, but so many around the port."
Some resorts such as Marbella, Playa Las Conchas, finished construction, but because only a few condos sold, had to close, as were income or to maintain the operation.
Agents consulted consider that prior to the crisis, the developers of condominiums and resorts fell into certain "excesses "few guarantees by requiring Americans.
In addition to the economic crisis which hit the United States, joined public safety crisis in Mexico, which for real estate agents was more negative propaganda to strengthen their domestic real estate market.
" Peñasco is not sinking, is afloat: Mayor Alejandro Zepeda
It takes place in the Forum of Delegates Peñasco in Sonora »
December 2011
Article stolen from local newspaper
The housing crisis in America, the lack of infrastructure and insecurity have affected the Sonoran destination
By: Nallely Ortigoza and Rolando Chacon
Reforma newspaper Taken
The former Paradise real estate in Puerto Penasco, Sonora, is now practically abandoned and the construction of new housing developments, completely stopped.
After the boom that lived between 2001 and 2007-years that were built more than 3 000 houses, including 30 luxury condominium projects, today this resort faces a drop in sales of this type of housing more than 70 percent.
This is because, experts say, both the EU housing crisis as insecurity and lack of infrastructure.
Currently, the buildings have depreciated as much as 60 percent from their levels before the crisis, said Jonni Francis, member of the Coldwell Banker real estate in Puerto Peñasco.
In fact, although the total inventory housing is about 25 000 units and that 650 properties in the residential segment are for sale, barely able to market 15 per month, said Richard Savino, president of the Mexican Association of Real Estate Professionals in Puerto Peñasco.
"When the economy worsened in America was very difficult because all of our buyers come from there, so they are not buying, "he said.
Richard Kiy, president of the International Community Foundation and author of a study of U.S. retirees in Mexico, agreed that the fall demand for properties in Puerto Peñasco is due to the housing crisis in America.
Having tied its economy to the market in Arizona and Nevada, mainly in Puerto Penasco caused a devastating effect, as the bulk of its customers live in the two states most affected by the U.S. housing crisis.
Omar Tirado, reservations manager of the firm Ocean Real Estate, said at the beginning of the crisis, many Americans who had purchased condos in the port fell into bankruptcy and were forced to sell their properties. Even some, in despair, cut their prices, which led to a cascading effect.
"If you want to compete in the market, you have to match the prices, and some have fallen 50 percent or more, even 70 percent" said Tirado.
Because of this, at least three projects were left half-built and three are in foreclosure.
But this has not only affected the housing sector, as room occupancy decreased from 65 percent in 2007 to 35 percent in 2011, and prices of the rooms fell 40 percent, according to the Mexican Association of Hotels and Motels.
In the case of restaurants, sales were down between 40 and 50 percent, estimated Mario Zazueta, regional vice president of Sonora and Sinaloa in the National Chamber of the Restaurant Industry and Seasoned Foods.
Francis relates that when comparing the year 2005, before the start of the housing crisis, from 2011, it shows a drop in sales relatively low, 3 per percent, but revenue fell 37 percent due to plummeting prices.
By comparing the new properties that are offered in Puerto Peñasco notice the drop in construction.
In 2005, Coldwell Banker offered until November 112 new properties, but now is 49 and their value in 2011 is only 20 percent of the value of offering 6 years ago.
"This building was thus, inconclusive, and already has well over four years", said Juan, the caretaker of a condominium complexes such Resort, "and there was no sale, everything was closed and the owners said 'let's go', we do not know when, but so many around the port."
Some resorts such as Marbella, Playa Las Conchas, finished construction, but because only a few condos sold, had to close, as were income or to maintain the operation.
Agents consulted consider that prior to the crisis, the developers of condominiums and resorts fell into certain "excesses "few guarantees by requiring Americans.
In addition to the economic crisis which hit the United States, joined public safety crisis in Mexico, which for real estate agents was more negative propaganda to strengthen their domestic real estate market.
" Peñasco is not sinking, is afloat: Mayor Alejandro Zepeda
It takes place in the Forum of Delegates Peñasco in Sonora »
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