Appraisers perceive real estate investment conditions in Mexico


For valuation specialists, Mexico is one of the countries in the Latin American region that stands out for its favorable conditions for investment in real estateboth due to external factors and indicators of the economy in the United States and by some segments that show good behavior at the national level.

During the SiiLA Live webinar, Andrés Robayo, managing director of Logan Valuation Mexico, explained that despite real estate sectorssuch as offices, have been affected at a national and global level, there are others, such as hotels, that maintain positive figures.

“Despite what people thought, the hospitality and hotel market is doing very well. Cancun has historical occupations that it did not have even before 2019, and revenues have been rising considerably,” he explained.

other segment real estate of opportunity in Mexico considered the Logan appraiser specialist, it is the senior living, in which businesses have already been developed focused on US clients who are looking for options to establish their retirement home.

For Robayo, due to the increase in interbank rates in the United States, and its reflection in Latin American countries, this must be taken into account for the issue of financing; however, inflationary issues can be a positive indicator for properties that charge rent in dollars, as is the case with those located on the border.

“For projects like the ones you see in Monterrey, Ciudad Juárez, that charge in dollars, it is very good because they have income in dollars, but they are spending in pesos,” said Logan’s representative.

For Alejandro Delgado, country manager of the SiiLA Mexico firm, the country’s population pyramid, in which the majority of people are young, will be a factor that in the medium term will trigger a greater need for housing, work centers and other real estate.

Even the war between Ukraine and Russia can have a positive impact on the real-estate market industry of the country, because for some foreign companies it will be easier to serve the United States market from the northern border of Mexico.

“Although we are a globalized world, having neighbors like the United States, which is the world’s leading economy, helps you,” said Alejandro Delgado.

Another region that can take advantage of the industrial boost is the Bajío area, which is taking advantage of its proximity to the United States and its qualified workforce, the experts agreed.

Energy supply, a challenge for industrial growth

For Andrés Robayo another real estate that can take off in Mexico is that of industrial parks to house the data center industry, since regardless of the type of business, all companies require this type of space.

However, Alejandro Delgado pointed out that for this type of estate it is necessary to guarantee the supply of energy. “There is very little energy available, a lot of investment to pool our energy, and that makes the project more expensive,” said the SiiLA specialist.

“It is a challenge that we definitely believe must be resolved, both from the private and public initiatives,” he added.

For Robayo, even though the inflation a cycle of deceleration begins, the energy issue can affect the increase in prices.

Another challenge for real estate industry In Mexico, it is the development of multifamily and coliving projects, which give preference to the community of inhabitants, rather than individual spaces, which, although more accessible to younger generations, have not stood out.



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