Nearshoring impacts home sales in Mexico
Nearshoring impacts home sales in Mexico, according to the report related to the sector.
During the second quarter of this year, nearly 14,000 new homes were sold in the metropolitan areas of Mexico City and Monterrey.
According to the Real Estate Market Report by Tinsa Mexico, most of these transactions were the result of nearshoring.
This indicates that nearshoring affects home sales in Mexico, as well as other sectors. This is despite the increase in mortgage interest rates due to the monetary policy decisions of the Bank of Mexico.
In the Mexico City Metropolitan Area, 7,171 units of new homes were sold between April, May, and June of this year.
These figures represent an annual growth of 18.1% and a quarterly growth of 10.3%.
Meanwhile, in the Monterrey Metropolitan Area, over 6,591 units of new housing were sold in the same period.
“The relocation of large companies to the Monterrey region not only has a significant impact on employment but also on the real estate sector, generating a significant demand for homes, commercial properties, and even industrial warehouses,” said Leonardo González, an analyst at Propiedades.com.
It is clear that nearshoring impacts home sales, as there is a redirection of some markets, including the necessary personnel for it.
Nearshoring impacts home sales in Mexico and other sectors
In this regard, nearshoring has been instrumental in positioning the northern region of the country as one of the most attractive regions for foreign companies.
Government figures from Nuevo León indicate that out of 100% of companies relocating to Mexico, 76% are coming to this region, reflected in the opening of an average of two companies per week.
Some of the companies that have arrived in the northern region in recent months include Tesla, Quanta, and KIA, among others.
According to the report, in municipalities like Monterrey, the average housing cost ranges from 1.8 to 11.5 million pesos.
Meanwhile, apartments are sold for 2.3 to 5.4 million pesos. In the Mexico City area, home sales have an average price tag of 1 to 3 million pesos.
The real estate sector shows significant growth opportunities thanks to three factors: nearshoring, disciplined fiscal policy, and prudent debt management, according to the Association of Real Estate Developers (ADI).
Nearshoring presents a unique opportunity to attract investment, influencing the construction of industrial warehouses as well as residential, office, and retail buildings.
Nearshoring impacts the sales of all sectors related to a consortium.
The nearshoring phenomenon is bringing historic investments to northern Mexico, where properties rented by foreigners have grown by 40%.
However, this has made it more difficult for local workers, who are crucial to factories, to access this housing.
While builders focus on this new foreign market niche, they have neglected the workers, who, due to low salaries, can no longer afford a home.
An analysis by Canacinta indicates that Ciudad Juárez is the Mexican city with the most employment generated by nearshoring, accounting for around 18% of the total generated in the country, an estimated 45,000 industrial job positions.
Consequently, the rental of properties to foreigners coming to Ciudad Juárez has increased by 40%, according to the Mexican Association of Real Estate Professionals (AMPI), and now the rental of a home for six to eight people ranges from 16,000 to 25,000 pesos per month.
