Properties for rent assured their dynamism in the face of the health contingency
Estudio Contar reported that the real estate sector began its recovery during the second half of 2020, with a favorable outlook for this year
According to Estudio Contar, an agency focused on studies and market intelligence, the outlook for the Mexican real estate sector during the new normal is favorable. Alejandro López Macias, CEO and founding partner of Estudio Contar, indicated that this sector maintains a high return on investment, despite the effects of the pandemic and the labor market.
“The word that most defined the real estate market was uncertainty,” López reported regarding the effects of Covid-19 in the first quarter of 2020. The drop in sales and productive activities, after the declaration of a pandemic by the World Organization Health (WHO), generated significant real estate uncertainty. López Macias indicated that in Jalisco the effects of this uncertainty became important 15 days earlier than in the rest of the country, while the health contingency was declared two weeks earlier.
In an exclusive interview for the NotiPress team, López Macias indicated that during the second half of 2020 a recovery process began for the real estate sector. Since this sector has a high level of attractiveness in terms of investment, it remains a safe pillar of compensation for losses, growth and smart investment in 2021. “The real estate market represents 11.1% of the Gross Domestic Product (GDP) in Mexico “he added.
According to data from Estudio Contar and Banco Inmobiliario Mexicano, a placement of 7.9 billion pesos (mmp) is estimated in the real estate market, especially credit, and a fund-raising of 6.17 mmp. “This speaks of a real estate market that is in motion; the country’s economic issue revolves around construction and especially housing,” said López Macias.
For their part, both the Bank of Mexico (Banxico) and the Ministry of Finance and Public Credit (SHCP) foresee a recovery of 4.6% of GDP, where the real estate sector will have a key participation. Although the sector is facing a complex recovery outlook, its high profitability and importance during the health contingency ensure its own return on investment.
Likewise, according to B2B Media, a digital real estate platform, the demand for real estate faced difficulties due to the labor market; however, being a staple product, rental properties ensured dynamism in this sector. The processes and policies for granting loans accelerated the real estate trade, as well as the accessible terms of financing by public and banking institutions. B2B media reported that the greatest demand comes from segments of social interest, which make up 44% of the total in rent and sale, with property costs equivalent to 3 million pesos.