Perspectives on the Mexican Real Estate market in 2023

The real estate sector in Mexico could have growth of up to 1% in 2023 and the figure could even be much higher in the 10 submarkets where tourism predominates.

What is the current outlook for the real estate sector, specifically in new projects?
In housing, we have a somewhat contradictory situation because housing [contracts] continue, but the start-up of housing projects has stopped. What we are going to see is a continued contraction of the sector, in which developers start new projects.

What happened to the commercial area in recent years?
In the commercial real estate part of the market, projects that were scheduled to start in 2020 have postponed their entry into operation until 2021.

What is the current situation of the industrial segment?
One challenge with the industrial side is that there is a demand for space, but not enough cheap housing is being built in these places. This occurs in markets where a lot has been invested recently: Monterrey [in the state of Nuevo León], Ciudad Juárez [Chihuahua], Tijuana [Baja California] and the Valley of Mexico. In the absence of cheap housing, there is a limitation in the growth of industrial demand because there is no place to house the workers.

Which were the states with the highest number of projects?
The biggest market in 2022 was the Valley of Mexico market. There is estimations that it had sales of 87.6 billion pesos [close to US$4.5 billion]. It is followed by Cancun [in Quintana Roo] with 44,284 million pesos, then Monterrey with 35,371 million, Guadalajara [in Jalisco] with 28,891 million, the city of Querétaro in the state of Querétaro with 16,465 million, Puerto Vallarta in Jalisco with 15,741 million, Mérida [in Yucatán] with 14,904 million, Mazatlán [in Sinaloa] with 9,721 million, Tijuana with 8,559 million and Los Cabos [in Baja California Sur] with 8,438 million.

Those are the top 10 by market value.

What is the outlook for 2023?
The economic scenarios that I have seen suggest that we are going to have growth of between -2% and +1%. One of the great opportunities for Mexico is the issue of what is happening with the departure of so many companies from China.

Source:The Yucatan Times
Thanks
C.P. Karina Sayed