The momentum of Infonavit, the new developments, the drop in mortgage rates and some market niches, open an encouraging scenario for the Mexican real estate market. Here, all the keys to seize the opportunities of the new normal.
No economic sector is immune to this pandemic. To a greater or lesser extent, the impact of the crisis has been felt in each and every one of the actors in the national economy. And real estate is no exception.
However, according to the CEOs of the main real estate brokerage firms in the country who participated in the second edition of the 2021 Real Estate Workshops organized by the Vivanuncios real estate portal, they considered that there are elements to think about a 2021 with a better scenario for the sector.
First, the demand for houses for sale has been sustained. Due to health measures to reduce contagion, people spend more time at home and many of them telecommute, so they are in search of better homes to live in.
But in addition to this basic need that animates the real estate sector, there are more reasons to think that 2021 will be a year of opportunities. Because, as they say, every crisis hides an opportunity.
Boost of Infonavit and growth of up to 20%
During the aforementioned Workshop, Jorge Paredes, president of Realty World Mexico, indicated his optimism for 2021 with optimism in the industry. “The housing industry is reacting positively and if this is tied with the new Infonavit rules it will be very good,” he said.
It should be noted that in 2020, with Unamos Credits, 40,000 financings were granted for housing and the new rules greatly favor the industry.
“People who know the sector are projecting growth of 20% throughout 2021, which would be an unusual growth, because if we look at the statistics in 2015, the ladder is down in production, and this would be the start of a rebound ”, Paredes pointed out.
Lower Mortgage Rates: Transactions Completing
In 2020, banks experienced a decline in loan applications, fostering interest rate competition. Clients and real estate operators celebrated this momentum.
For example, in Vivanuncios, the best mortgage loans for land have been selected. And these are the most suitable proposals: BBVA Land, Santander Land Acquisition, Banorte Land Credit, Afirme Land Credit and Banregio Land Acquisition.
BBVA offers a fixed annual rate of 11.20% and terms of 5 or 10 years, financing up to 65% on the value of the land. The Santander Terreno Acquisition scheme, meanwhile, has a fixed annual interest rate of 13.64% and the Banorte Terreno Credit of 12.50%. The Afirme Land Credit finances up to 70% of the property’s value and its annual interest rate ranges between 9.90% and 11.60%.
Finally, the Banregio Land Acquisition offers a fixed annual rate of 9.30%, with a 20-year term.
Greater training and digital development are the new challenges of the sector
It is clear that there were changes and that the prospects for 2021 are good. But, obviously, this shakeup in the sector requires changes in the way of working.
In this sense, the main real estate referents in Mexico agree on the importance of training real estate agents to take advantage of upcoming opportunities, teaching new ways of attracting clients, renting and selling properties in the new normal.
Collaborative work is also a vision to be developed if the industry is to be energized and, probably, the synergy between firms, franchises and agents, encourages new forms of real estate operations.
But the key point in times of pandemic will be to make the most of the advantages of new technologies to bring the product closer to customers. Sergio Felgueres, CEO of Remax Mexico, explained that efforts should focus on strengthening the digital part. “The challenge is how to bring our products, the real estate, to the people. That has to happen with videos, with systems like the ones Vivanuncios has; Through all this digital part that will allow us to bring the house to the client ”, he assured.
Opportunities for small capitals
In times of crisis, accessible alternatives must be offered to all types of budgets. And small capitals are an unbeatable opportunity.
Vivanuncios experts suggest different ways to invest in real estate with little money. The first, obviously, is to take advantage of the home mortgage loans mentioned above, looking for the most convenient interest rate.
Other options are to remortgage or extend the mortgage, use real estate crowdfunding platforms, buy in mortgage auctions or start subletting properties.
Undoubtedly, the more variety of investment offered to a client, the more opportunities to close a deal.
The female market as a market niche
According to a recent study by Vivanuncios, women are a great opportunity for real estate agents. Those responsible for this platform asked the participants about the implications that the pandemic brought in their decision to move house.
40% of them indicated that they have not reduced the investment contemplated to change their home, while 45% expressed their intention to move this year.
What drives women to invest in housing and why are they a thriving niche for 2021? On the subject, 35% of those surveyed assured that the decision is in line to form an equity, while 33% see it as a viable investment alternative.
In short, there are more opportunities than challenges that 2021 poses for the real estate sector.