Real Estate Sector to Grow in 2021: LamudiBy Sofía Hanna | Mon, 08/16/2021 - 11:21
Demand for residential, commercial, industrial, office and land for sale and rent in Mexico increased by 67 percent during 1Q2021 in comparison to 1Q2020, said real estate platform Lamudi. The platform forecasts 3.5 percent growth in real estate transactions during 2021, while data available from financial institutions points to an expansion of 2.5 percent in 2022.
Lamudi’s 2021 real estate report analyzes the real estate offering, the behavior of market prices, the behavior of the demand for real estate in its different sub-sectors and segments and the influence of COVID-19 in the sector. According to the report, structural changes will have to be made in the products offered to adapt them to the new needs of the end customer, which include more suitable spaces that prioritize ventilation and natural lighting. Regions such as the State of Mexico, Queretaro or Merida should be taken advantage of since they are experiencing strong momentum in their real estate demand.
The real estate market is expected to keep moving thanks to the credit tools that the authorities and banking institutions are beginning to generate to revitalize the country’s economy, explains the report. The residential sub-sector has majority participation with 83.5 percent of the total demand for real estate in Mexico. Within this sub-sector, there are the Top 10 states in growth of residential demand were Morelos, State of Mexico, Quintana Roo, Queretaro, Guerrero, Jalisco, Nuevo Leon, Puebla, Baja California and Guanajuato.
In terms of the offering of real state for sale, Residential is the most popular sub-sector with 73.2 percent, followed by Land with 13.1 percent, Corporate with 5.3 percent, Commercial with 5.2 percent and Industrial dead last with 3.2 percent. The Residential subsector can be further divided into houses, which represent 60.6 percent of the offering, and apartments, which represent 39.4 percent. In the offering of real estate for rent, apartments represent 65 percent and houses 35 percent. Nationally, most owners prefer to sell than to rent, with real estate for sale representing 85 percent of the total of available offers. Salvador Sacal Cababie, President 2021 of the Mexican Association of Real Estate Professionals (AMPI CDMX), is quoted in the report saying: “In the short term, the real estate business will generate income mainly in Leases of houses. In sales, social interest and interest averages will benefit from the Mortgage Credits given the decrease of the interest rate. Housing properties of up to MX$3.5 million (US$176,128 million) will be in high demand.”