Posted November 6, 2006
El Universal (Mexico)
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The scene is a familiar one for residents of Mexico City's central areas: New, luxury apartment buildings appearing, only to end up half empty, with "For Sale" and "For Rent" signs hanging in the windows
The building boom is the result of a new city policy launched six years ago aimed at halting the seemingly unstoppable growth of the city into the State of Mexico, which has put a strain on the region's power, water and urban services.
To counter the trend, the city government prohibited the construction of large-scale housing projects in 12 of the capital's 16 precincts. The idea was to force the city to grow vertically in its center, rather than horizontally, by isolating new constructions to the central precincts - Benito Juarez, Miguel Hidalgo, Cuauhtemoc and Venustiano Carranza.
Many of the city's most recognizable neighborhoods, such as Roma, Condesa, Centro, Polanco, and Napoles, are located in these four precincts.
But as new precinct heads take over following the city elections last July 2, many are finding the policy hasn't had the desired effect.
Benito Juarez precinct chief German de la Garza said that according to official census statistics, his precinct has actually lost residents since 2000.
In 2000, the National Statistics Institute listed Benito Juarez's population at 360,000 residents, but today that number stands at 355,000.
"This means that more people left than have arrived," he said, blaming city policy for the trend.
"For example, we've seen a large number of buildings that haven't been sold because of their high cost," he said. "The price of the land is inflated, although there are other explanations as well."
In these neighborhoods that have experienced housing booms, the offer is mostly luxury condominiums that range between 800,000 and 2 million pesos (US$74,000 to US$186,000).
Eloisa Alvarado, a resident of the well-to-do Polanco neighborhood, said there are new buildings going up on almost every street. That doesn't mean they are inhabited, however.
"There are no new neighbors," she said.
Incoming Miguel Hidalgo precinct head Gabriela Cuevas said the focus has been on luxury housing that most city residents can't afford, while the need is for affordable options.
But the housing requirements created by the city have made this difficult by driving up the cost of land, she said.
Many condominiums were bought by speculators hoping to make profits off of rent or resale, but the oversupply has depressed prices, Cuevas added.