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The pandemic has reconfigured the real estate sector, which seeks to adapt to the new reality in order to fully recover from the economic impact of the start of the coronavirus pandemic (Covid-19), so there are already signs of changes both on the supply side as well as the demand in the face of the new economic and social scenario.
Specialists agreed that one of the most dynamic sectors during 2021 was that of middle-income housing and one of the most affected was the residential segment; however, they do not see alarm signals in any particular area, it is simply perceived as a natural process in the context of economic recovery and the factors that have been triggered in the new reality.
“There are housing segments that are moving the most. Mexicans look for housing depending on sociodemographic factors and the housing sector with a value between 850,000 pesos and 2 million pesos has good dynamism”, explained Alejandro Blé, Marketing Manager of Coldwell Banker Mexico.
In this context, Marisol Becerra, consulting director of Tinsa México, pointed out that although middle-income housing has a general perspective, there are regions where it is more dynamic than in others.
“For average housing, the State of Mexico, Jalisco and Nuevo León are the leaders; while the lowest sales rates are in Zacatecas, Campeche and Tlaxcala for this segment”, explained the Tinsa specialist.
According to data from the Lamudi firm, at the beginning of this year, the social housing segment, which has a value of up to 321,000 pesos, occupied most of the residential demand, with 44.16%, while the average housing (of 925,000 to 1.1 million pesos) was in second place with a 33.8% share.
However, as the pace of the economy moved towards a recovery, the outlook changed and in the last month of the year, the average residential dwelling accounted for most of the residential demand, with a 44.1% share, while the social segment it came in second place with a 34.7 percent share.
Regarding the higher value segments, such as residential (from 2.1 million pesos to 2.3 million pesos), residential plus (from 4.2 million pesos to 4.6 million pesos) and premium (from 4.6 million pesos upwards) , these remained practically stable to close the year with a participation of 15.1%, 4.5% and 1.7%, respectively.
Becerra stressed that in some regions there are very important challenges for the construction of social housing, since, although there is demand, there are complications, such as the rise in the price of construction supplies, which make it difficult to generate supply of this type where there is a high potential demand.
“There are still important challenges for the sector, one of them is the production of social housing, where in cities, such as the country’s capital, it is still very difficult to serve these segments, since the costs of land, added to the increase in construction materials limit the viability of real estate projects focused on this segment of the population, which is precisely where there is the greatest deficit and demand to be met,” said the director of Tinsa México.
Sector dynamism
For Becerra, the housing sector has been one of the most dynamic in the country, along with the industrial sector, so depending on whether the activity fully recovers its dynamism, this will be a trigger for the country’s economy.
“Housing, after the industrial sector, has been one of the most dynamic segments this year. However, it is notable that offices and retail are also on the way to a gradual recovery, which is beneficial for the entire sector, due to the synergy generated between them. Let’s remember that “housing follows employment”, so depending on whether the activity recovers its dynamism throughout the chain, this will be a trigger and beneficial for everyone,” Becerra said.
The director of Coldwell Banker pointed out that the real estate sector has been one of the factors in the recovery of the economy and one of the most stable despite the economic ups and downs due to the health contingency.
“We have seen that what has undoubtedly maintained the economy is the real estate sector, it is something that, without a doubt, although it has paused in certain aspects, has remained stable. Since 2020, 11% of the GDP came from the real estate industry, also the maintenance of low interest rates and financial conditions have been quite accessible and the government’s plans to reactivate the industry sector have also helped, “he explained. Alexander Ble.
For his part, Phillip Hendrix, General Director of Coldwell Banker Mexico, commented that, although there are changes in the real estate sector, its dynamism is maintained due to the demand for real estate of different types, from housing, offices, industrial spaces , among others.
“All the activities we do require real estate, where you live you require a house, where you work you require an office, where you go to exercise you require real estate. So it is an industry that will always be in demand. There are times when certain sectors of the market move at different speeds, but the entire industry is always moving forward,” Hendrix explained.
Marisol Becerra, director of Tinsa México, added that for there to be a full recovery of the real estate sector, a comprehensive strategy between developers, financiers and authorities must be followed, in order to meet unattended demands.
“Without a doubt, it must be a comprehensive strategy between all the participants in the sector, including the authorities, starting from the basis of understanding what the needs of the market are and unattended demands, both financially and product-wise,” he said. Calf.
Financing push
According to data from Tinsa, from January to August of this year, 323,345 loans were placed for the purchase of housing (new and used) in the country, which is equivalent to an increase of 13% compared to the same period in 2020.
In this context, Becerra highlighted that these figures are also higher than pre-pandemic levels, which gives a favorable outlook for the entire sector.
“These figures denote a significant recovery for the sector. The housing industry maintains an important dynamism, where the middle segment has been one of the most outstanding”, detailed the director of Tinsa México.
