Mexico
Answer ... As the economy reopens after the COVID-19 pandemic, the housing market has posted positive figures and there is hope that inflation – which was one of the main factors affecting the real estate market – will fall; although this is by no means certain. It is nonetheless likely that the value of the national housing market will increase. For 56% of real estate managers in Mexico, the sector’s performance was better than the previous year such as 2021 and 2022.
It is agreed that inflation was the main factor that impacted the real estate sector, followed by the public policies of the last administration, as well as the increase in and interest rates. During 2023, rate increases have also left a mark on the market. However, inflation is expected to fall in 2023. Since the beginning of the current federal administration, the real estate sector has faced challenges such as the cancellation of the Texcoco Airport project, which was originally initiated by a previous administration. The current government chose to terminate the contracts prematurely, resulting in cancellation and the payment of substantial compensation to construction companies. These decisions have, in turn, had a discouraging impact on the real estate industry. Additionally, the sector has also grappled with the adverse effects of the COVID pandemic, further exacerbating the challenges faced by the real estate market. Nonetheless, there is an expectation that the square footage under development will grow in order to cater to the rising demand, aimed at influencing potential customers based on their location by offering various services and benefits.
The trends predicted for 2023 are as follows:
- Interest rates may come down slightly, although they are expected to remain comparatively high;
- There will be adjustments upwards in housing prices
- More rentals and fewer purchases are anticipated;
- There will be an emphasis on sustainable and responsible investments; and
- The second-hand housing market will increase.