$100 Million Investment Frozen in Mexico’s Riviera Maya!

Over $100 million in real estate investments in the Riviera Maya are on hold due to uncertainty caused by the proposed constitutional reform of the Federal Judiciary, spearheaded by President Andrés Manuel López Obrador.

Wilberth Gutiérrez Álvarez, the national president of the Mexican Association of the Real Estate Industry (AMII), disclosed that three projects have been postponed by investors until the judicial reform situation is clarified. These projects, which were in the early stages of development, include two shopping centers and an international construction material sales chain.

The direct result of this uncertainty has been the suspension of land purchases where these projects were to be built, due to the current political climate in Mexico. Gutiérrez Álvarez explained, "The proposed method of electing or appointing judges and the potential disregard for judicial career progression raises questions about future proceedings. Investors are concerned about who will ensure that their legal processes will be carried out properly. This uncertainty is what causes projects to halt."

This information was gathered directly from the investors by the AMII, but it is possible that more cases could be unfolding on the Riviera Maya. Gutiérrez Álvarez added, "When someone decides to invest in a region, they need to make their decision based on the certainty of the land, the local legal issues, development plans, and a host of other important factors."

Currently, members of the Union Congress are working on the proposed constitutional reform of the Federal Judiciary. This reform would involve the public election of district judges and potentially even ministers of the Supreme Court of Justice of the Nation.

In the Riviera Maya, for example, the lands of Calica are currently in a dispute with the government of Andrés Manuel López Obrador and are currently closed.