Real estate market in Mexico rises thanks to investor confidence

During the last three years, the real estate market in Mexico registered an increase of 30% and in the next three years a similar percentage is expected, due to the fact that the segments that comprise it register healthy behaviors.

In the last three years, the real estate market in Mexico presented an increase of 30% and in the next three years a similar percentage is expected, thanks to the fact that the segments that comprise it register healthy behavior, said Yadira Torres, director of research at CBRE markets Mexico.

When participating in the presentation of Disruption and Disruptors in Real Estate, it was stated that in the last year Mexico adapted to various events that changed the real estate market, such as the peso-dollar parity, inflation, the price increase fuels, as well as natural phenomena, in a context of "confidence to invest in Mexico".

It was pointed out that the markets in general show dynamic numbers, and there is even a correction in the cycle of new projects in development that begin to decrease in the face of the oversupply registered in the office market and the lag of projects.

However, the market growth is 30% in the last three years and a similar percentage is expected in the following three years, with a vacancy rate at the end of the year of 17 percent.

I point out that sectors of the economy such as transport and logistics, automotive manufacturing, pharmaceuticals, new energy, electronic commerce, food and beverages, as well as tourism services, have registered better numbers in the demand for industrial and corporate spaces.

"The demand has been very strong in the last five years and has a lot to do with the conversion and all the things that we had to adapt this year out of the ordinary," the board said.

During 2017 and as a result of the earthquakes in Mexico City, there was a high percentage of changes from offices type B to A, a 'flight to quality' supported by a change in culture in the companies, but also by a demographic change that encourages companies to have better work places, innovative equipment and better security.

While the areas with greater demand for next year will be Insurgentes, Santa Fe and Polanco.