Residential Real Estate: a Lesson in ResilienceBy Federico Cerdas | Tue, 05/25/2021 - 08:58
A few months ago, we said goodbye to the year 2020, an atypical and complicated year that, to this day, continues to leave its mark. However, the real estate sector in Mexico taught us about resilience: even though not all segments benefited, the residential sector managed to pull through.
Contrary to what most people thought would happen, this sector stayed dynamic during most of last year, mainly during the last quarter when we were able to see an increase in sales.
I’ve said it various times, industrial and residential real estate assets, both as sales and rentals, were the least affected. However, office, hotel and commercial assets registered negative impacts due to the social distancing measures taken, such as home office.
Since the confinement periods forced us to change our routines, among them our work routine, we have come to realize that it is possible to work and communicate with teams from home or from any part of the world.
On the other hand, taking into account the enormous growth impact from e-commerce on the industrial and logistical sector, added to the continued dynamism in housing, we can now see a financial reactivation and recovery within these sectors.
This is the case for the residential sector; people noticed that it was a much safer bet to keep their money invested in real estate than keeping it in the bank. In addition to the importance that those same people gave it as an essential way to keep physically safe.
This has led to a greater search for real estate, either as investments or for homes.
The changes in lifestyle and how business is conducted has been most evident in the area of space, within which notable priorities are outside spaces, such as balconies or terraces, as well as flexible areas to study, work or exercise.
Faced with this and as part of our work as businessmen, we must now drive the development of vertical housing adapted to the users’ new requirements, maintaining easy and quick access to basic services such as public transportation.
One thing that is certain among developers is that there will be a redesign of housing units as a consequence of the amount of time we spend at home. The goal is not only to provide areas that adapt to any activity but to also grant a good quality of life in a family and work environment; to make it an all-in-one.
The first changes we’ll see in new constructions will be focused on balconies. We never imagined how that small space would cause us such happiness during a confinement period such as the one we are living through.
The next are very closely related to privacy; that is to say, to spaces that allow people to take calls, classes or conferences in an uninterrupted manner, inside or outside the house. And, thirdly, the right lighting, accompanied by natural light.
Taking into account all these trends will allow us to maintain and increase sales or rent numbers while, simultaneously, covering business requirements.
This period of time has changed our perception of housing space. Those of us who meet these trends and understand new needs will be the ones to earn the highest market share.