MEXICO Law and Practice Contributed by: Roberto Cannizzo, Carlo Cannizzo, Stefano Amato and Mauricio Moreno-Rey, Cannizzo
The past year has seen significant deals involv - ing the reconfiguration of industrial spaces due to “Nearshoring” becoming a trend, with a num - ber of international businesses relocating opera - tions to Mexico for improved supply chain con - trol and proximity to the US market. Nearshoring generated approximately USD36 billion in Mex - ico in 2024. The Mexican Association of Private Industrial Parks (AMPIP) estimates the arrival of at least 450 foreign companies to Mexico between 2024 and 2025. AMPIP estimates that industrial space vacancies account for less than 1% of the total inventory. In 2023, Mexico Pacific Limited announced plans to invest USD14 billion in Sonora, for the development of a gas pipe - line and liquefaction facility. Moreover, Tesla has announced the development of a USD5 billion “Gigafactory”, a large battery-production facility, to be built near the city of Monterrey by 2026. Impact of Disruptive Technologies New technologies have impacted the real estate industry in Mexico. Investors in the sector have found new ways to invest, using blockchain technology, decentralised finance (DeFi) and proptech. These advancements have facilitated the expansion of acquisition portfolios, creation of marketplaces for fractional property owner - ship, and even fragmentation of mortgage debt. Blockchain technology has been embraced by the real estate industry because it brings trans - parency to transactions, reducing risk and pro - cessing time, and could ultimately eliminate unnecessary costs for buyers, such as search and no-liens expenses, notary public fees and registration costs. Smart contracts and the strengthening of elec - tronic commerce has also influenced the sec - tor. Fintech start-ups involved in the real estate sector have created digital payment solutions, which, among other benefits, reduce the use of
paper cheques or cash. Such platforms facilitate smooth and secure transactions, conveniently enabling tenants to make rent payments online and property owners to receive payments elec - tronically. Lenders have benefited from the implementation of new technologies through risk assessment, algorithmic processes and data analysis. In the construction and development sector, contech has introduced collaborative software, improved financial management and reduced construction costs, making processes more efficient. Moreover, the Law to Regulate Financial Tech - nology Institutions provides a legal framework for new technologies, and the Mexican National Banking and Securities Commission (CNBV) grants authorisations to operate, so an increase in technology companies entering the market, including the real estate sector, is anticipated. However, significant changes to business prac - tices in the sector due to these technologies are unlikely within the next 12 months. The legal requirements of the Mexican civil law system necessitate notary public involvement and fil - ings to transfer property titles and record mort - gages, resulting in a formal and strict procedure for obtaining property title deeds under Mexican regulations. 1.3 Proposals for Reform In March 2022, NOM-247-SE-2022, an Official Mexican Standard ( Norma Oficial Mexicana or NOM) was published with the goal of protecting potential buyers from abusive market practices. NOMs are mandatory technical regulations. This particular regulation regulates buyer rights, seller obligations, guidelines for real estate advertising, and extended warranties against structural fail - ures, among other aspects, in order to eliminate
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