UPDATE 1-Mexico homebuilder Ara sees no 2008 revenue growth

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MEXICO CITY, Oct 22 (Reuters) - Ara, one of Mexico's leading homebuilders, warned on Wednesday it does not expect revenue growth this year due to choppy markets and a delay in new residential developments.

Ara (ARA.MX) shares were off 17.4 percent at 3.98 pesos in afternoon trading as the broader market melted amid rising worries the U.S. slowdown could drag Mexico into recession.

Ara and peers like Homex (HOMEX.MX), Urbi (URBI.MX) and Sare (SAREB.MX) were favorites among investors because of a boom in low-cost housing during the period 2000-2006.

But as the financial crisis deepens and lenders curb credit to companies and individuals alike, housing firms face trouble finishing building or starting new developments. (Reporting by Cyntia Barrera Diaz, editing by Leslie Gevirtz and John Wallace)