A decrease in demand from U.S. citizens for housing in Tijuana, due to less price differentiation, will translate into a restructuring of both rental and land sales prices.
According to Leonardo Topete Sánchez, Valuation Officer of the Mexican Association of Real Estate Professionals (AMPI) Tijuana, this has already begun to be seen in the occupancy of residential properties and the reduction in rental prices.
He noted that rents had been increasing in previous years, as more and more foreigners were looking for a place to rent, thus adjusting to the economic capabilities of that economy.
More Affordable Housing
Although this was due to the market seeking more affordable housing, he asserted that today the difference in affordable real estate prices is no longer that great.
As a result, many U.S. and binational residents have opted to settle completely in their countries of origin, decreasing their interest in renting in Tijuana.
It had the problem of crossing back and forth, but the rents no longer have that much difference in prices; people prefer not to pay that difference and stay there. “In the United States,” Topete Sánchez said.
Market Adjustment
This situation has led to a market adjustment, especially in the temporary demand for properties, which has resulted in a restructuring of prices, both for rent and land.
“I don’t think it will happen in the very near future, but we’re going to see rental prices stabilize and restructure. We’ll also see land sales prices stagnate,” he stated.
He mentioned that, regarding land sales and price stagnation, this will be due to scarcity, and with fewer available properties and a slowdown in the market, the value will remain the same.
This change in behavior, Topete Sánchez acknowledged, has forced owners to reconsider their prices.
“If you previously rented an apartment for $1,500 and only listed five out of $20, what do you do? Well, you lower the rent to attract new tenants,” he explained.
Source: elimparcial
