Spanish Bank BBVA more than doubled its profit during the first quarter of 2015 compared to a year ago, as growth in Mexico. BBVA makes more than 80 percent of its profit overseas.
Mexico contributed 44 percent to profit in the first quarter and helped drive a 7 percent rise in gross lending across the bank, Spain’s second-biggest by market value. Brokers point to the 50-story Torre BBVA, which will be the tallest tower in Mexico City when it’s completed this year, as a sign of the strength of the market. BBVA Bancomer, Mexico’s biggest bank by outstanding loans, is financing the building and will fully occupy it.
With the recent energy reforms, anticipation for increased foreign investment led to more construction and many point to an upcoming oversupply in commercial real estate as early as 2017. This has yet to be seen in the market but companies are getting a little nervous. The vacancy rate in Mexico City has been volatile, bouncing from 2.5 percent in 2009 to 22 percent two years ago before dropping to 12 percent in 2014, according to CBRE. It projects a rate of 18 percent by 2017.Older postNewer post