Three Levels Of COVID-19 Impact On Real Estate InfrastructureBy Pedro Alcalá | Wed, 05/20/2020 - 18:57
While Mexico sets forward in a path to end quarantine periods, Mexico City settles into an extended quarantine that will end on June 15, instead of June 1, according to El Universal. However, the dust will begin settling on various subsectors of Mexico’s infrastructure. This includes the real estate segment. The segment could be divided into three levels (housing, offices and industrial space) to map out the way in which it is being impacted by COVID-19.
One piece from Inmobiliare cites a recently completed poll by Coldwell Banker of real estate agents seeking to determine what are the most in-demand characteristics of new housing units according to interactions with current and potential buyers. The results are quite revealing: home office conditions have changed buyers’ perspectives drastically. Additional separate rooms ideal for studies and personal office spaces within homes are in demand, along with other flexible and open spaces that can be converted to personal gyms. Meanwhile, demand for proximity to large parks and public spaces has decreased.
A second piece from Inmobiliare analyzes the way in which WeWork is organizing the gradual global reopening of its more than 600 shared office spaces. In Mexico, its presence extends to 2,000 member companies and facilities in 26 buildings. Taking into account their over 100 buildings in China as their guiding protocol, WeWork will install specialized HVAC equipment that can filter and clean air more effectively. Sanitation and cleaning protocols for surfaces and spaces will increase in frequency and intensity. More disinfectant dispensers will be installed, along with floor markings to indicate positions that fulfill safe social distancing in all spaces.
Finally, a third Inmobiliare article details the 40 percent drop in construction of new industrial warehouses that took place in Mexico from March to April. Despite the fact that Mexico City and Ciudad Juarez have remained active and attractive markets for these types of developments, other previously active markets such as Guadalajara, Guanajuato, Queretaro, Monterrey and Tijuana have not only experienced this 40 percent drop but in some cases have experienced a 100 percent cancellation rate of all projects falling under this category of real estate development.