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AMPI Cancun concerned about how judicial reform will affect real estate investments

Cancun, Q.R. — The Mexican Association of Real Estate Professionals (AMPI) of Cancun say they too, are concerned about the judicial reform. The reform, which will change how legal professionals are hired in Mexico, has been a concern for many.

Patricia Mora Vallejo, President of AMPI (Asociación Mexicana de Profesionales Inmobiliarios) Cancun says city real estate projects have not stopped. She says they are hoping to finish the year on a positive note.

According to Vallejo, investors are concerned about the recently approved reform.

“We don’t know exactly what will happen, who will represent us in the judicial field, what capacity and knowledge they will have,” she said referring to the new voting-in system of both federal and local legal professionals. “We have to be prepared,” she said.

Vallejo says she has heard from some investors who have already said they will wait for the official outcome of the secondary laws of the reform, which will help restore certainty, in particular, to U.S. investors, their largest market, to the local real estate market.

“They continue to look at Cancun but not with the movement we expected. The elections in Mexico, the elections in the U.S. and then the reform of the Judicial Branch made developers a little nervous, but we have to wait for calm to arrive, to have everything that is going to happen broken down since it is important,” she explained.

Patricia Mora Vallejo, President of AMPI Cancun.

Vallejo said investment projects that have already started in Cancun have not stopped since there are also investors from Mazatlán, Monterrey and abroad, however, AMPI is hoping to close the year on a positive note despite the reform.

Jesús Almaguer Salazar, President of the Association of Hotels of Cancun, Puerto Morelos and the Continental Zone of Isla Mujeres, said although the reform was necessary, “it should have been done in a more intelligent way.”

He says the outcome remains uncertain and is generating fear among investors and businessmen.

“It will not only affect investors but also citizens. We do not know what characteristics the candidates for judges must meet, who will pay for the campaigns. Personally, I think it is not good for the country. Let us hope that the secondary laws are well nuanced,” he said.