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Wall Street Journal #1 - Article Example

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There has been a residential boom in the most fashionable neighbourhoods of Mexico City, which has turned into a classic example of what may fail when infrastructure does not keep up with the development of real estate. Developers such as Carlos Slim have built more than 14,000…
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Wall Street Journal #1
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Lecturer: Topic: Tony Mexico Neighbourhood Becomes a Cautionary Tale Synopsis There has been a residential boom in the most fashionable neighbourhoods of Mexico City, which has turned into a classic example of what may fail when infrastructure does not keep up with the development of real estate. Developers such as Carlos Slim have built more than 14,000 new apartments in the past ten years while only fifty-five were developed in the previous decade. This has increasingly made the area congested further increasing the problem that was caused by traffic, water shortages as well as the crumbling infrastructure.

The problem can be attributed to the lack of a master plan as well as disjointed plans and the different forms of mixed-use developments in Mexico City are new to the area and have brought a lot of demand from the upper-middle class particularly the ones with young families due to their collection of retail, cultural attractions and offices (Whelan). More about the storyDevelopers have taken the vacant land in the area and closed industrial sites so that they can be abele to develop sites, and this has increased the population of the city without considering the breadth of the streets to accommodate the increased flow of traffic, the electrical systems as well as the capacity of the water in the area.

It is easier to get a permit for development in Mexico City than it is in New York City, and this is the main cause of the exponential growth that has brought problems as far as water and power are concerned.Projections of what will happenThe city has had to put a hold on the permitting process and consequently start an overhaul of the entire process so that it can be able to check and plan for the development that is taking place. This has lead to many developers that had already procured land for the construction having to wait a little longer until the process is reviewed making them delay on huge investments.

Work citedWhelan, Robbie. A Tony Mexico City Neighborhood Becomes A Cautionary Tale.. Online.wsj.com. N. p., 2014. Web. 4 Jun. 2014.

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