MEXICO’S REAL ESTATE MARKET: A LOOK AT THE LATEST TRENDS AND FIGURES

Buying a house in Mexico has become more expensive in recent times, and this trend is expected to continue. According to a study by BBVA Mexico, the price of homes increased by an average of 10.4% in the last quarter of 2022, with new homes reporting a greater growth of 11.4%. This situation is attributed to several factors, including the increase in the Banxico reference rate, which has impacted the cost of financing for the construction sector, thereby leading to higher housing prices.

Furthermore, urban apartments and houses are not the only properties that have recorded an increase in value. According to the study, states with tourist sites such as Quintana Roo, Baja California Sur, and Nayarit have topped the ranking, reporting price hikes of up to 14.7%. The high demand for housing in these areas, coupled with limited supply, has contributed to this upward trend in housing prices.

Despite the increase in interest rates, banks have continued to maintain strong competition, which has prevented further price increases. The average mortgage in Mexico exceeded 2 million pesos for the first time at the end of 2022, registering a growth of 2.9%. However, mortgage credit remains highly concentrated in just five states, with Quintana Roo displacing Guanajuato from fifth position.

The number of mortgage loans granted in 2022 was lower compared to the previous year, and the amount decreased by 4.9% in real terms. However, it is expected that the number of loans will grow by 2.3% in 2023. While this growth may seem modest, it does provide some hope for potential homebuyers in Mexico.

Overall, buying a house in Mexico has become more expensive, particularly in states with high demand for tourist housing. However, despite the increase in interest rates, strong competition among banks has prevented further price hikes. With the expected growth in the number of mortgage loans in 2023, there may be some relief for potential homebuyers in Mexico.