POSITIVE GROWTH IN 2024 FOR THE REAL ESTATE SECTOR
According to the Real Estate Market Outlook 2024 study by Tinsa México, the real estate industry is expected to have good growth in 2024, but without leaving aside the challenges that can be converted into opportunities, the social interest segment has fallen in recent years and this is also reflected in the decrease in mortgage placement. Investment in nearshoring, tourism and infrastructure will be key to driving growth in demand from the social interest and middle segments.
“According to the Mexican Association of Real Estate Fibers (AMEFIBRA), 500 companies attracted by nearshoring have recently arrived in Mexico, driving demand for industrial spaces. And, as has historically happened, housing follows employment, so, by detonating these industrial and labor hubs, all residential development and industry in general are impacted,” said Justino Moreno, Chief Data Officer of Tinsa México.
On the other hand, demand remains constantly growing with new niches and opportunities, such as:
- Families changed. According to the Social Research Institute, there are currently 11 types of families in Mexico, now the traditional family represents only 25.8%. These figures allow us to detect that demand is changing and housing needs are changing. For example, we see a significant growth in petlovers, currently 7 out of every 10 Mexican households have a pet, so it is important to create spaces to meet the needs of these new family members.
- Increase in tourism. During 2023, Mexico received more than 40 million international tourists, with an average expenditure of $1,155, which represents an increase of more than 25.7% compared to 2019. This generates a high expectation to serve tourists looking for experiences. alternatives to traditional hotels, which is why investments in the development of real estate properties are attractive.
- Sustainability. There is a growing awareness in society about the importance of the environment. This is how sustainable design and construction will continue to be relevant in 2024, taking care of factors such as air, water, materials, movement, thermal comfort, lighting, sound and community. This is also driven by financial products, such as green mortgages.
- Boost in the use of Big Data applications. Data analysis will help to have better decision making, since predictive analysis can infer the behavior of the real estate market and thus property prices in the future.
- Use of artificial intelligence. AI supports accuracy and speed including pattern automation and personalization of property offerings. Sentiment analysis used to analyze customer opinion about different properties and areas; As well as the integration of data from different sources, including social networks, sensors and mobile devices, provides companies with a more complete view of the real estate market and customer preferences.
“Although the market is reconfiguring, its evolution opens great opportunities for real estate development. Investing in bricks continues to be good business, as long as it is accompanied by a deep and recurring analysis of supply and demand to align, not only the products, but the strategies,” Justino continued.
“The real estate market is cyclical, we close a moderately stable 2023, which opens the way to a challenging 2024, in which the challenge is to climb the demand curve to continue promoting the second industry with the greatest contribution to Mexico’s GDP: the sector. real estate,” he concluded.
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