Important housing investment projects have been significantly slowed down in practically the entire country, except in certain areas whose tourist attraction has maintained its growth in the sector. I am referring, in particular, to the Riviera Maya.
It also has a lot to do with the fact that the construction of low-income housing was reduced due to the disappearance of subsidies. From my point of view, that was a good measure, but perhaps it should have been carried out gradually so as not to stop this important sector that serves the most vulnerable population in the country.
In the matter of middle-income, residential and residential plus housing, the effects are more delicate because they are investment projects that require greater capital flows, imply greater risk and a more complex construction process.
Unfortunately, most of those projects that take more time and resources are held back by mistrust and rampant corruption that plagues the entire country.
Today more than ever we are seeing high levels of extortion and corruption from the authorities. It is alarming to see how this happens and it is striking that small, medium and large developers talk about it in short, but for no reason in public, because they fear that the consequences will be greater or they do not do so so that their projects are not slowed down even more. .
Making a public statement on this issue guarantees the immediate suspension of the works and that is called terrorism.
Such a scenario has discouraged many developers who today prefer to wait until there is greater certainty over time, which has the housing market extremely limited.
There will be those who argue that the supply of housing in areas such as the Valle or Interlomas neighborhood is more alive than ever, however, despite the fact that a significant amount of housing has been built there, the reality is that it has not been absorbed due to issues attributable to the economic crisis that have caused purchasing power to decrease.
What will happen in the coming months? In my opinion, all that existing housing inventory is going to be absorbed through the sale or lease; little by little it will decrease and that will create a domino effect: as the demand for housing increases, its prices will rise, even above inflation.
The prices of houses and apartments will continue to rise at the national level and the most affected areas will be the metropolitan area of CDMX, Guadalajara and Monterrey. Again, in tourist destinations, I do not perceive so much deterioration, since there is a large demand for housing by foreigners that is being satisfied, although it should be noted that housing for the local population is scarce, even in the Riviera Maya.
From my perspective, it will take a few more years (surely when this harmful administration is over) for confidence to be recovered and the real estate sector to be reactivated.
Unfortunately, the formation of wealth through the purchase of a house or apartment will be more complicated for the middle classes, since the offer will be very limited. This will cause prices to rise.