These and other decisions made by the so-called fourth transformation have favored a feeling of uncertainty that in the real estate business was accentuated in 2018, when the Head of Government of CDMX, Claudia Sheinbaum, closed many projects and kept many others detained for up to 10 months. , due to an alleged corruption that he never proved.
This has been a lost three-year period for housing, much less new housing has been built in these first years of López Obrador’s six-year term than what had been built in any first three-year period in the last four six-year terms.
The effect of all this is a very significant setback that will cause between 2022 and 2024 a fairly considerable shortage of houses and apartments in most of the country and in all socioeconomic segments.
National and foreign investment today unfortunately lack the necessary certainty to invest in important projects in the short, medium or long term. For there to be certainty, there must be respect for the rule of law and proper use of public resources.
What actions would send a positive signal that Mexico has rectified the path and that it would be a good time to invest? In my opinion, the waste that is being carried out in Pemex through the reactivation of public-private contracts should be stopped; and the electrical reform should be stopped by underpinning the promotion of public-private investments for the development of renewable energies.
The increase in the prices of construction materials
In Mexico, the inflationary effect has considerably increased the prices of construction materials. There are real estate projects in process that were affected by this increase immediately, others will see it in the coming months, since the impact depends on the progress of construction. Everyone in one way or another will resent it. The point is that it is very likely that the final buyer will have, from now on, more difficulties to build equity through the purchase of a house or apartment due to price appreciation.
The curious thing is that in the United States they are also experiencing the effects of high inflation and the increase in construction prices, however, in that country more houses are being built than have been built in recent years, the housing sector is growing and there is a great demand for real estate. The reasons are simple: economic stability and certainty in the Rule of Law.