Mar 12, 2012

Drug War and Mexico Economy: Acapulco's Drug Gangs Curb Oceanfront Condo Sales: Mortgages

San Francisco Chronicle- Sare Holding SAB, the builder offering $1.4 million condominiums on the Pacific coast beach of Acapulco, is struggling to sustain sales and share prices amid increasing bloodshed from Mexican drug cartels.

Revenue in Acapulco, Sare's one-time biggest market, dried up completely in the fourth quarter, dragging full-year home sales in the city down 54 percent to 330.2 million pesos ($26 million), according to a Feb. 27 report and additional figures provided by the company. Security concerns were among the biggest obstacles to growth, with its home sales nationwide plunging 90 percent, the company said.

With the Mexican mortgage industry struggling to recover from an economic contraction three years ago, Acapulco's gangland killings are exacerbating the slump in a city already losing its luster to resorts in the Mexican Caribbean. Violence intensified last year as cartels jockeyed for control of cocaine shipment routes to the U.S.

Consumers "have the security issue on their minds," said Jorge Placid" read more

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