Although for this year there is a positive perspective on the dynamics of the property in the country, the most important challenges to continue in this area will be to overcome the inflation, which in turn could put pressure on the issue of hiking in interest rates, according to an analysis of the platform Ninth.
The real estate platform presented the results of its real estate sector perspective survey for 2022, applied to more than 800 real estate advisers, proposing a recovery of the real estate market in 2021, following the impact that the onset of the health crisis has on the current one.
“The inflation trend we saw in 2021 and which will continue in 2022 is the biggest concern for advisers, because they know that inflation can of course significantly increase property prices and thus create problems for people to access the real estate market,” said Karim. Goudiaby, CEO of Neximo, explains.
According to Neximo, inflation had a cost in production costs, which according to his calculations was 20%, for which the said impact is expected to be reflected in the final offer by the second quarter of 2022.
“Inflation will have increases in construction costs and therefore in house prices,” Goudiaby said.
Given this scenario, the founder of Neximo noted that an effect of inflation, which ended at 7.4% in 2021, is the pressure on interest rates, so an increase in interest rates on mortgage lending is expected during 2022.
“It will certainly have an impact on interest rates. Although we have experienced a very broad period in interest rates in Mexico, with single digit rates, we think that our rates will rise again during 2022, “Goudiaby said, adding that it will depend on the strategy of each bank, as Mortgage Credit is one of the most competitive products among financial entities in the country.
Middle segment, with good perspective
Goudiaby highlighted the recovery the property segment had during 2021, following the impact that the onset of the health crisis had in it.
For the specialist, this was due to mobility in certain segments of the population, as well as the demand that persists despite the economic impact of the contingency.
“The fact that the real estate sector was maintained was because many people took refuge and thought that real estate was a long-term asset that could improve their ability; “We saw people who decided during the crisis to sell their property to recapitalize and we saw that they used this period to expand their (property) portfolio,” said Goudiaby.
According to the founder of Neximo, the real estate market during 2021 was adjusted according to the needs of the demand. “What we have seen is mainly the willingness of people to have larger spaces, many times further from the city center, but also the willingness to look for a lower price segment.”
In this context, Goudiaby emphasized that average price housing had greater dynamics compared to higher value property. “Demand in the middle segment increased significantly when demand in higher segments of real estate, for example in Mexico City of more than 5 million pesos, suffered greatly during this period.”
According to the Neximo survey, 52% of agents surveyed see more dynamics in the middle-income housing market, followed by residential (with 30%), social (16%) and plus with just 2% of favorable prospects.
Reference-www.eleconomista.com.mx