Various national and international investments may be affected in 2022 in Mexico, including those in the real estate market related to the performance of the construction industry and the current macroeconomic situation.

The most relevant factors for the performance of commercial real estate are the increase in interest rates, which has a greater weight for changes in the value of real estate, and the increase in the prices of construction supplies.

According to data from Cushman & Wakefield, factors such as gasoline, steel, concrete, inflation and the balance between supply and demand along with the real estate need also have an impact, according to an opinion survey collected among national and international investors, developers , FIBRAs and real estate developers, before the conflict between Russia and Ukraine.

Check here: Fibra Danhos increased its net operating income by 24.1% as of 1Q 2022

The consultant conducted a survey of participants in the real estate chain, and the results indicate that the impact of the pandemic and the impact on the use of offices, by the well-known Home Office, and for shopping centers due to the closure of some premises, are valued as short-term effects.

It should be noted that optimism prevails to invest in the industrial and multifamily sectors, even 55.2% of investors intend to make an acquisition in the short term in the industrial sector, while a seller/owner's market is expected for both.

In contrast, for offices and retail, investors have more conservative expectations, since "there is a moderate predominance of the intention to sell real estate with office and retail use." The balance becomes more optimistic when it comes to a long-term horizon, for most sectors.

Of interest: Baja California industrial markets with the lowest vacancy rates nationwide

In relation to the commercial real estate market, respondents noted a marked increase in office availability rates and a significant decrease in office vacancies in the industrial sector, contrasting the end of 2021 with that of 2020.

In multifamily, absorption is expected to continue positive, and in hospitality there would be no significant changes, where real estate capitalization rates are expected to remain at a level similar to the current one, with an average of 7.07% for industrial buildings and one of 8.55% in shopping centers.

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Original  note