The Mexican real estate market has been one of the least affected by the Covid-19 pandemic in Latin America. In Peru and Colombia, the mortgage pipeline fell in just 15 days. It highlighted Jesús Ramón Orozco de la Fuente, Director General of Tinsa Mexico.
When participating in the panel How to build now with the experience of Covid-19, within the University Housing Forum organized by Grupo En Concreto and the UNAM Faculty of Architecture, he expressed that in general, it has been one of the least affected industries in the country.
He explained that the market has recovered very quickly. There is no rise in values, there is a margin of price values. The recovery if seen in perspective is an abyss of difference because the market has recovered quickly.
Marco Antonio Gómez, General Director of VAPROY, warned that in the commercial and office business area, the recovery will be slow, and as long as the pandemic does not end, it will worsen.
Effect on South of Mexico city
In the south of Mexico City, for example, we have seen the eviction of many premises in different areas such as the restaurant, or furniture showroom, the offer has increased, and prices are falling, which discourages the investment in those niches.
In these areas, he said, there is an oversupply that has been accentuated by the pandemic. For many companies, the home office has worked extraordinarily.
Gustavo Reyes Aguiaris the President of FECOVAL. He highlighted in turn that we are seeing changes in uses and customs in the sector. There is a transition from single-family housing to vertical.
“We are changing the appraisers because we must also consider intangibles,” he noted and said that the changes brought about by the pandemic, such as amenities, will also impact the value of new buildings.
He pointed out that there has not been a great impact on construction values at the moment. “we have been one of the least hit industries.”
For his part, Gustavo Carrera is the Executive Vice President of Housing and Urban Development of the Mexican Chamber of the Construction Industry (CMIC). He said that there has been an increase in the prices of materials for housing above the National Index of Consumer Prices (INPC). It is not for housing, as the industry has absorbed the margins.
In this sense, Jesús Domínguez González Corporate Finance Director of Grupo Tierra y Armonía agreed that costs have increased, so they are looking for ways not to impact customers.
In this regard, Luis Magaña Teuffer is Sales Director of Saint Gobain Glass Mexico. She said that in the new normal after the pandemic, more efficient materials in housing should be taken into account.
While David Sánchez is the Director of Construction and Operations at Génesis Capital. He said that the competitiveness of the industry has generated the search for new materials instance.
After all, He highlighted that 50 percent of the environmental impact on the planet is produced by this branch. “that is why it is important to concentrate on new materials that help sustainability”. Such as recycled materials, fiberglass, plastics, or those that form its production and useful life are friendly with the environment.
Finally, Alfonso Penela Q, Academic of the Faculty of Architecture of the UNAM closed the forum with the reflection of relearning the trade. He recalled that the institution provided the tools to implement the new ways of teaching in the new normality. There is also investment in the pedagogical process.
Also read: Real state overview in America
Conclusion: Here we have provided some information about the Mexican real estate market in America. It is a notable topic in Latin America nowadays.