Verticalization in Real Estate Investment Monterrey Rises to 40

Verticalization in Real Estate Investment Monterrey Rises to 40


Vertical living in Nuevo Leon has demonstrated to be one of the most resilient in the real estate market of the state during the pandemic, so it is estimated that it will continue to increase in Monterrey and other cities.

This resurgence of vertical housing makes the region attractive for real estate investors due to the potential in population density, the rise of apartment rentals, and portfolio diversification in a state consolidated as one of the biggest industrial components in Mexico and that also has a GDP per cápita over the national average.

The vertical sector in Nuevo León has proved its potential to generate attractive ROI in the long term because of its low exposure to volatility, as well as its capacity to offer security and surplus, suffering less affectations in crisis.

Local real estate experts affirm that the third quarter of 2020 has been one of the best-selling ever, just below the last quarter of 2019. They believe the market has already recovered and estimate to get 5% more sales than last year. Monterrey is the city that has sold more vertical units so far.

They also think that people going back to their works in office buildings will make them look for housing close to their working spaces, reducing their journeys and favoring the conditions for verticalization.

Ten years ago, verticalization in Monterrey didn’t reach 20% of properties. Today, the number has doubled due to the changes in the Active Working Population of the city, concentrating mostly millennials, centennials and alphas.

Another advantage for the real estate investment in Monterrey is that the offer and demand inventory is balanced, without exceeding 24 months, because developers learned to adjust their products to better cover the current necessities of the market.

Verticalization in Monterrey has been backed by the DOT regulation (Desarrollo Orientado a Transporte, Transportation-Orientated Development). Established in 2013, the DOT regulation is a guideline to design real estate products required by the market thus satisfying the demands of every socioeconomical status. In this way, a balance is achieved, and the premium offer doesn’t exceed its true demand unlike other Mexican cities.

Considered as one of the most important financial centers in Mexico, Monterrey is highly connected to others cities such as Mexico City como Ciudad de México, Toluca, Querétaro, Puebla, Guanajuato, Guadalajara, Zapopan, Zacatecas, Durango, Gómez Palacio, Torreón, Saltillo, Chihuahua, Tampico, Tijuana, Mexicali, Hermosillo, Obregón, Los Mochis, Culiacán, Mazatlán y Tepic.

Keywords: Monterrey verticalization, real estate investment Monterrey, Monterrey real estate development, vertical housing Monterrey, Monterrey.