The COVID-19 pandemic brought many changes. Experts foresee that this situation will generate a greater movement among families, which will make them look for new spaces to live.
The real estate business had a challenging year. However, by 2021, it would be expected that, in the housing segment, demand will continue, in a scenario where families will look for a new space to live.
The foregoing is part of the proposals that were made at the “CDMX 2021 Real Estate Associations Forum ‘, organized by the real estate portal. At the meeting, led by Roberto Eases, general director of the platform, presidents of various organizations in the sector discussed their expectations regarding the behaviour of the housing market in the year.
In this regard, Mater de la Mora, president of the Association of Professionals in Real Estate Marketing (APCI), highlighted that in 2021 a context with much more movement and migration by families is visualized. And it is that, he said, derived from the pandemic, people are looking to change their home.
“It is something that has hit us a lot and we are having too much offer. Right now, customers have a lot of offer in the market, a lot of options; On each street there are 5 or 6 ‘For Rent’ or ‘For Sale’ ads. What there is not so much is customers, but in 2021 we feel that there is movement, “he said.
In the case of Mexico City, Jorge Esteban Salcido, president of the Union of Real Estate Professionals of Mexico (UPIM), mentioned that there are certain areas that have remained, for several years, as those preferred by those who seek to live in the capital. For example, Polanco, a cosmopolitan business area that, unlike the rest of the colonies, is priced in dollars.
However, he pointed out, other neighbourhoods have recently emerged that offer a much more varied and accessible housing offer. Such is the case of the Doctors, the Narvarte and the Del Valle.
Regarding the matter, Fernando Rodríguez Bustamante, president of Grupo Inmobiliario Zona Poniente (GIZP), specified that these ‘trendy’ neighbourhoods were affected by the oversupply that was registered in 2020.
“That was translated, precisely, in the affectation of the values of the real estate and of various circumstances. In some neighbourhoods, there was even a depreciation in both sale and rental prices”, he explained.
He added that in some neighbourhood’s there was a decrease in the price of homes of up to 10%; however, there were others that were sustained, and even had an increase in new construction.
The president of GIZP considered that vaccination against Covid-19 could lead to a rebound in the sector to return to the values that were had before the pandemic and return to give certainty to people, both those who rent and those who want purchase.
“Many people stopped buying precisely because of the uncertainty of what is going to happen economically, and this positively accelerated rents. However, all these indications that we are seeing at the beginning of the year, such as everyone’s tiredness of being locked up and the question of the vaccine, we have an estimate that this will have to be positive and will have a start of, more or less, a 5% higher than last semester”, he indicated.
Digitization in the sector
For his part, Salvador Sacal Cababie, president of the Mexican Association of Real Estate Professionals, Mexico City section (AMPI CDMX), pointed out that the pandemic accelerated the digitization process of the real estate industry.
“We were ahead 10 years of life before reaching 2030 in exactly one month, because, as of April of last year, either we all put the batteries or we carried ‘Pifas’ between our legs (…) There was a need for us to give training courses on how to use technology, we had to understand hard”, he recalled.
He affirmed that the use of new technologies has allowed the sector to become more professional, since they allow reaching hundreds of people at the same time. In addition, he stressed the importance of being in constant training, since there are still many other technologies that will be adopted in the future; and not having this face-to-face contact with customers requires much greater knowledge.
Rebound in activity.
Finally, Fernando Rodríguez stated that the income segment saved the business in 2020. And these incomes were due to the movements of people who, seeing their income cut, looked for more accessible places.
“After this movement of income that occurred due to the situation of the pandemic, there came a time where everything had already been placed; then, those rents continued, but no longer with that boost that it brought.
What we saw at the end of last year is that it seemed that there was a positive upturn, real estate company Tajarat property was active again, we had calls again, we were interested again in the properties that we have for rent and for sale”.
In this sense, specialists expect positive growth in the real estate sector for this 2021, with greater confidence on the part of clients and investors.
2021 will be a year of opportunities in the real estate sector, experts say.
Despite the situation presented in 2020, the real estate sector obtained positive results. According to the specialists, the conditions are favourable so that in the current year there will be good results for the industry.
2021 is forecast as a year of opportunities for the real estate sector. However, the various players that make up the industry must be prepared to capitalize on the scenario and promote better dynamics.
CEOs of four of the main real estate brokerage firms in the country agreed on that. When participating in the second edition of the 2021 Real Estate Workshops, organized by the Vivanuncios real estate portal, the specialists considered that there are elements to think about a 2021 with a better scenario for the sector.
Among other things, they stated, the high demand for housing, added to the boost in the issue of credit that has been seen, configure the necessary elements to detonate the sector. In addition, the industry comes from a 2020 of learning and good results despite the contingency.
In this regard, Gerardo Contreras, CEO of Century 21 Mexico, pointed out that despite the complex scenario of 2020, the real estate industry showed resilience and came out ahead. Even, he said, it was not only a sector that kept pace and registered less damage, but in some cases of real estate firms there were increases in the number of operations.
“2020 is a positive balance, because we had an unknown challenge, a pandemic challenge that made us leave the comfort zone, be creative, where we take advantage of technology as a tool.
“Real estate was a market that continued. Sure, we had shocks in April and May. However, in our case, we managed to surpass the 2019 numbers. I have seen statistics that in sales we grew by 5%”, he pointed out.
Going forward, he said, in 2021 a panorama of opportunities opens up for the industry. He only said, we will have to be very well prepared to materialize them.
“This 2021 we will have a better scenario in our real estate industry. You just have to be prepared. Take off your fear and take care of yourself”.
Infonavit boost, opens positive scenario.
In this logic, Jorge Paredes, president of Realty World Mexico, pointed out that 2021 is perceived with optimism in the industry. He stressed that the work being carried out by Infonavit opens up an area of opportunity to place more homes.
“The housing industry is reacting positively and if this ties in with the new Infonavit rules it will be very good. Last year, Unamos Credits granted 40,000 financing for housing. There are new rules that are very favourable to the industry.
“All of this makes me feel positive about the growth of the housing industry. People who know the sector are projecting growth of 20% throughout 2021, which would be an unusual growth, because if we look at the statistics in 2015, the ladder is down in production, and this would be the beginning of a bounce”, he pointed out.
The specialist considered that although the crisis generated by the pandemic brought challenges, it also generates opportunities and learning. In this logic, he pointed out, one of the issues that the contingency has shown is the need to bet on digital tools to get closer to customers.
“We have to take advantage of addressing the large existing housing deficit. We have very good expectations for this year and what we can do as real estate companies is to digitize ourselves in order to be very close to our clients, to our prospects and to place all the inventories they give us”, he indicated.
Demand for housing remains steady.
On the other hand, Sergio Felgueres, CEO of Remax Mexico, emphasized that in the high demand for housing there is an opportunity for the real estate sector. He stressed that the need for homes does not stop, so it is a scenario that will have to be taken advantage of.
In that sense, he explained, the challenge for real estate professionals will be to have the tools, be prepared and act. However, he added, real estate firm http://www.skymarketing.com.pk/al-noor-orchard-lahore/ have already started with that evolution. Mainly, he said, efforts should focus on strengthening the digital part.
“The challenge is how to bring our products, the real estate, to the people. That has to happen with videos, with systems like the ones Vivanuncios has; Through all this digital part that will allow us to take the house to the client”, he indicated.
In addition to the above, he pointed out that an opportunity in sales is opening up in the rest houses.
“What is growing a lot is that in some cases, the second houses are becoming the first house, and that is a great opportunity. People are realizing that they can go to live in other places and come to Mexico City once every fifteen days to check pending”.
Opportunity at the T-MEC
In his participation, Jorge Carbonell, CEO of Keller Williams Mexico, stressed that professionals in the sector must evolve, and adapt to the environment to be prepared and take advantage of the situation that arises.
In that sense, he considered that the T-MEC will bring a series of opportunities for the country, so it must be on the lookout to realize them.
“A very interesting moment is coming, and a very important spill is coming for the country that is the T-MEC, it will be very strong; The United States is going to put everything into its economy and that is going to hit us. You have to take advantage of it, be open-minded, in a collaborative way”, he pointed out.
Carbonell added that the pandemic accelerated the evolution of the sector. Among other things, he explained, the industry is increasingly using technology to bring properties closer to people.
Likewise, he said, the crisis has brought opportunities. He mentioned that in 2020, many people managed to capitalize on those opportunities with an increase of up to 10% in their trading volume.
Notably, CEOs agreed that real estate agent training continues to be critical to seizing opportunities ahead. In the same way, they explained that the vision of collaborative work must grow in the sector, in which although there is competition between agent and franchises, there is also teamwork to boost industry activity.