While most Mexicans are obsessed with the ongoing U.S. Presidential elections, the Mexican economy is chugging along nicely. Whether you want to buy or sell properties in Mexico quickly, you will be pleased at the current state of the housing market in the country.
The housing sector in Mexico has been showing considerable momentum lately. It has been helped by the strong economic growth for one, as well as the improvement in labour market conditions. Interest rates in Mexico have been kept at a record low, which means the borrowing costs for home seekers are as low as they get.
Construction activity in Mexico has been up by 6.4% since last year, and is much higher than the GDP growth. This comes after years of slowdown in the property market because of various reasons.
Scotiabank Economics report said, "We expect the Mexican economy to gain more traction through 2016, supporting job creation, household spending and credit demand. While the U.S. rebound has been slow to materialize, more recent data are pointing to strengthening consumer demand, evidenced by the upturn in auto and home sales. An improving U.S. outlook should bolster Mexican exports, reinforced by a more competitive currency and labour costs."
There’s been a massive increase in the demand for houses in Mexico. This is only natural given that Mexico has a large and growing population. Over 60% of Mexicans are under the age of 35, which means there will always be a requirement for homes and apartments for sale in Mexico.
The jobless rate in Mexico is only 4.5%, which is the lowest it has been in several years. Consumer confidence is high and there’s been a definite increase in formal sector employment.
The Bank of Mexico has done its bit to boost investment in the housing market by keeping the benchmark interest rate at a low of 3.0% since 2014. This has kept mortgage rates low and increased the demand for homes and apartments, especially from first-time buyers.
The economy expanded by 2.5% in the Q2 of 2016, which is a creditable performance. But the real story has been the high consumption growth. Home prices in Mexico have increased by 4% to 5% each year since 2013.
If you want to sell your apartment in Mexico, it is important to set the right price for it. That would make all the difference. The most important considerations to be made when setting property prices are proximity to urban centres and quality of the transportation. Generally, urban, high-density housing is more popular in Mexico than any new suburban development.
So who buys properties in Mexico? There are many wealthy individuals in Mexico, which means the local demand for luxury real estate here will always be very strong. As said earlier, a vast majority of Mexico’s population is under 35, which means there will always be a demand for single-family homes and townhouses.
There is a significant interest in Mexican real estate coming from the United States. The US is Mexico’s next door neighbour, and there are a large number of Americans who are of Mexican origin. So there will always be a huge demand for properties in Mexico from the USA.