Housing prices in Mexico rise 9.7% in first quarter: real estate consultancy

Housing in Mexico rose 9.7% in the first quarter compared to the same period last year, according to Marisol Becerra, Regional Partner Mexico-Centro of the real estate consultancy 4S Real State.

The director pointed out that the cost of housing in the country averages a total of 1.7 million pesos (mdp) due to the increase in demand.

“With figures as of May 2024, Nuevo León, Jalisco and the State of Mexico lead the marketing of housing in the country, where more than 4,000 homes are sold per month, both new and used. These three entities represent almost 30% of housing sales in Mexico,” she explained.

She added that while Nuevo León concentrates 11% of housing sales nationwide, Jalisco and the State of Mexico represent 9 and 8%, respectively.

These entities are followed by Guanajuato, Chihuahua and Mexico City, which concentrate 5% of the housing sales.

“Today the Underground City (GTO) practically sells the same as the capital of the country, when the market size is significantly smaller,” she mentioned.

The director also said that at a national level 4 out of 10 units that are sold are new homes, and pointed out cases such as Quintana Roo and Yucatan, where 70% of sales are concentrated in new homes, while in Veracruz and Chihuahua the figure drops to 40%.

BCS, the entity with the greatest growth in capital gains

Becerra pointed out that Mexico City registered a capital gain of 6.2% and along with it, the entities that stand out for a more moderate growth are Tlaxcala, with 3.9%; Zacatecas, with 5.6%; Michoacan, with 5.9%; as well as the State of Mexico and Guerrero, with 7.8%.

“The capital gain in Mexico City grew less than 7%, which is a favorable indicator. Although when comparing it with tourist markets such as Quintana Roo and Baja California Sur a significant difference is observed, in general terms, it is a positive sign of sustained growth,” he pointed out.

He explained that Baja California Sur was placed as the entity with the greatest growth in capital gain, with an increase of 15.7%, followed by Quintana Roo, with an increase of 13.4%.

“Since last year and until today, we continue to see that the states that are above the average are mainly those with tourist destinations, and as an example we have Quintana Roo and Baja California Sur as the entities where there are greater capital gains,” he explained.

He added that within the states with capital gains above 11%, Nuevo León (11.8%), Querétaro (11.6%) and Chiapas (11.3%) stand out.

“Those who have bought a property between 2020 or 2021 in Los Cabos, Tulum or Playa del Carmen, had a great success because these are the places that are presenting the greatest dynamism in prices. And this does not have a hidden secret: it is due to demand, because where it increases, prices also increase,” he stressed.

He pointed out that entities such as Sonora, Baja California and Nayarit were placed among the five states with the highest capital gains, presenting increases of 12.9% 12.5% ​​and 12.2%, respectively.

Financing grows 51% in the first quarter

Mortgage financing in Mexico grew 51.14% annually in the first quarter, according to the National Housing Information and Indicators System (SNIIV), an agency belonging to the Secretariat of Agrarian, Territorial and Urban Development.

The total financing, which includes individual and shared loans, was 240,185, compared to the 158,910 that were granted in the first three months of last year.

Of the registered figure, 27,382 financing actions were granted by the bank, 122,916 financing actions were granted by Infonavit, while Fovissste delivered 7,539 actions.

According to the SNIIV, the total amount delivered was 119 thousand 764 million 707 thousand 128 pesos. Of this total, the bank delivered 60 thousand 770 million 579 thousand 168 pesos to its clients to buy a house.

Infonavit granted 49 thousand 122 million 752 thousand 565 pesos, while Fovissste lent 6 thousand 635 million 441 thousand 110 pesos.

Meanwhile, the states that registered the highest number of home sales were Mexico City, Baja California Sur, the State of Mexico and Yucatan.

Source: forbes