Decrease in office use impacts the price of used housing in Polanco; shrinks 12.4%

Polanco It has been characterized as one of the most exclusive neighborhoods in Mexico City. Its dynamism took shape from a luxury commercial offer, hotels and residences with corporate spaces that created an ecosystem of workers in the area.
However, the Covid-19 pandemic changed the configuration in the use of offices, which has permeated what has impacted the housing segment in this area.

According to a market report from Properties.com, the housing prices used in Polanco showed a downward trend of 12.4% during the first half of 2022.
In this way, the apartments for sale of this class in this polygon of the Mexican capital, have an average starting price of 77,000 pesos per square meter.

Although less pronounced, the House new also had a fall of 2.3% at the end of the first six months of the year. Units of this type have an average price of 82,968 pesos per square meter, far from the 100,000 pesos per square meter that was observed in March 2021.

Leonardo Gonzalez, Real Estate analyst at Propiedades.com, highlighted that this trend is explained by different factors, including the work schemes that companies adopted as a result of the pandemic.

And it is that, thanks to home officeor remote work, the collaborators no longer have the need to live near the corporate brokers in the city, one of them Polanco.

“The housing demand in the area it has been contracting as an adjustment to the pandemic. Especially in the rental and acquisition of apartments, there was an adjustment phase in which users seek to work from home, but in cheaper options,” said the specialist during an interview.

Related Post

Nearshoring triggers occupation of industrial buildings in CDMX; availability hits record low

May 22, 2023

What is it and why is it important to do an appraisal before selling a house?

May 20, 2023

Tuhabi creates a platform to expedite notarial procedures in the sale of housing

May 19, 2023

How to price a move correctly and not die trying

May 19, 2023

He added that Polanco It is one of the preferred areas to live given its proximity to corporate centers; however, the vacancy of offices in the area has materialized in a lower demand for second-use housing units.

It is worth mentioning that the vacancy rate in this office corridor was 19.6% at the end of the third quarter of the year, with 274,431 square meters of available space, according to data from the real estate services firm Newmark.

Volatile capital gains

Despite the downward trend in prices, the Real Estate expert stated that Polanco has shown a positive surplus value in the house price per square meter measured with respect to 2021.

“If we consider this indicator, we see some volatility, in January it was 3.2% and, at the end of the first half of 2022, the capital gain was 16.1% throughout the area for new and used segments,” he detailed.

In this regard, he stressed that the market for Polanco continues in the competitive field, with stable levels of demand and expectations of good performance in the future.

“It is still very profitable to rent, the rate of return is approximately 4%. In fact, if we see the searches for residential properties on the Properties.com site, the preferred option is apartments for rent, from January 2021” , he claimed.

From January to June of this year, the platform reported 7,583 house searches for lease. In the second instance, an interest in units for sale is observed, where Polanco I was the most requested area, with 851 searches, followed by Polanco 5, con 787.