Real Estate Investment in the South of Mexico to Increase in 2021By Paloma Duran | Thu, 01/07/2021 - 10:53
National projects such as the Mayan Train are boosting economic growth and the development of the south of Mexico, especially in the city of Merida, Yucatan. The state is ideal for corporate development because it offers options for urban development and connectivity.
El Financiero reported in 2020 that the Mayan Train triggered an investment of MX$8.9 billion (US$45 million) from real estate developers such as Sky Capital, Luximia and Inmobilia. These companies are taking advantage of the increase in residential demand to build projects, which are expected to continue in 2021.
José Ramón Abascal Díaz Barreiro, Delegate of the Association of Real Estate Developers (ADI), said national projects like the Mayan Train and the Dos Bocas Refinery have boosted the development of housing and hotel projects in the south of Mexico, reported MBN.
Although the average rental price for corporate developments was MX$19.68 (US$1) per square meter per month, which is one of the highest prices at national level, flexible payment schemes are considered attractive for investments. According to the real estate analysis firm Solili, Merida increased its offering of multipurpose spaces in Aqua Avenue and Sky Work, which represent 50 percent of the built area and include hotels and corporate offices, reported Real Estate Market & Lifestyle.
The Montejo corridor, one of the main investment avenues, increased its inventory by 18,152m2 in 4Q20. Moreover, the Via Montejo complex completed its construction in 2020, adding 10,900m2 to the inventory of existing buildings in the Montejo corridor.
Sky Capital, a firm co-founded by Roberto Serrano, is currently investing MX $3.8 billion (US$19 million) in Merida, where it currently is building the city’s first skyscraper: The Sky. Moreover, the company is completing the second phase of the Sky Industrial Park and other industrial projects for residential and office use. "In Merida, there is a very large supply in the housing sector. However, there was a lack of constructions destined for corporate, office or industrial use, so we wanted to meet those market needs," Roberto explained to El Financiero.
Despite the decrease of international tourists in the southeast of Mexico, residential demand in more popular areas grew by 41 percent, especially in the housing market. Shark Tower in Cancun has received an investment of MX $2.6 billion (US$13 million). Mauricio Rovirosa, Director of Operations of Shark Tower in Cancun, said the market has received very well this project and has advanced 78 percent. "The southeast has had a considerable rise in real estate. Unfortunately, we were also affected by the pandemic. However, since June things are back on track and we have been receiving clients again,” Rovirosa told El Finanicero.
Most companies are confident that by 2021, the COVID-19 pandemic will begin to ease off. "We changed the vision of several of our projects. We stop launching projects and instead we began focusing on their launching by 2021," José Rafael Martínez Peón, President of Grupo Gea told El Financiero.