Housing sector lays foundations for the real estate industry in 2022

For this year, the Mexican real estate has sales expectations of 481,000 million pesos, especially due to the operations of the housing sector.

According to data from Softec, in 2022 178,000 new houses are expected for sale, with a market value of 265,000 million pesos, as well as 12,000 units of holiday home, for almost 64,000 million pesos. In total, both sectors account for nearly 69% of the total expected investment.

However, despite being the segment with the highest operations and amounts, the House faces challenges in the construction of new works and a lag in prices in the last three years, explained Gene Towle, CEO and founding partner of Softec.

“We believe that the housing marketnot because there is no demand, but because there is no supply of a new product”, he explained.

“As of 2018, what we have seen is that prices have lagged behind inflation, and what we are thinking is going to happen is that prices will adjust to the market.”

He pointed out that it is in the housing case of social interest where the most negative indicators are perceived, since from marketing more than 20,000 units per month, less than 5,000 are currently placed.

In the case of average housingTowle explained that the market stabilized after the exit of the Sofoles from the mortgage market, but there are currently suspended projects, while in the residential segment it is the only one that has grown in amount and volume of units built.

For Softec, a favorable point is that, despite a lower number of mortgage loans, the amounts financed continue to grow.

real estate expectations

Yes ok, the House will be the leading sector this year, other segments such as hospitality, offices and industrial, will also see square meters to their inventories.

Contracted, but growing

This year, it is expected that the real estate investment reach a figure very close to the results of 2021, explained Softec; however, less than 492,000 million pesos of real estate products registered at that time.

Gene Towle explained that like the general economy, lower growth does not mean that there is no activity, but rather that it will be at a slower pace.

He recommended that for real estatewhere the market contracts throughout the country, due to lack of inventory and investor concern, but with constant demand, it is necessary to review the conditions under which the market operates.

“When the economy does not grow, it means that we are going to sell the same average as last year, it does not mean that there is no activity, but when the economy is growing, you can swim faster,” he said.

The real estate industry It has registered a contraction both in sales and in the number of projects for more than 15 years, but between 2016 and 2020 there was a significant increase, which may not be the same after the Covid-19 pandemic.

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