Despite a better-than-expected year in 2020 for the real estate sector, where a projected 4% growth in Mexico failed to materialize, 2021 promises to be a banner year for property sales, especially in the Riviera Maya.
Many experts consider this year to be a better scenario since the real estate industry remained active, showed resilience, and came forward with new strategies to driving purchases.
To understand the optimistic outlook experts are holding for 2021, we need to go back and remark on how the challenges of 2020 were addressed amid the atypical situation of the COVID-19 pandemic:
- As a result of the presence of lower purchasing power after losses of more than 2 million formal jobs and more than 10 million in informal jobs, the purchasing power of Mexican households and businesses was reduced. This has spurred developers to offering better products at better prices.
- Real estate companies are reinforcing their business processes by updating the digital tools they are using to help guide users in making decisions when choosing properties.
- Helping to instill buyer confidence by rigorously implementing measures to prevent real estate fraud.
In addition to these efforts within the environment of the current health contingency, there are some other factors to consider:
- A buyer’s market, where the person willing to invest has more bargaining power.
- An increase in the number of rentals and a corresponding slowdown in the number of sales.
- A migratory effect to secondary cities and neighborhoods where people can find better deals, which can be seen in places like Queretaro, the State of Mexico, Jalisco, or Yucatan.
- An increase in co-living schemes due to economic pressures.
- The search of functional spaces that allow working from home.
So, why is 2021 looking positive for real estate in Mexico?
Despite having lived through a difficult year, the real estate market in 2021 is forecast to be strong. The real estate sector has worked hard to make this crisis an opportunity to strengthen the collaboration between the Mexican government, banks, corporations, and private companies to build consumer trust and invest in future successes in this year and beyond.