Within the framework of the event organized by Inmobiliare in Tijuana, representatives of 4 development companies in the area met, such as: FRASA, Grupo VEQ, Global Businesses Inc. and Bustamante Realty Group to exchange the challenges and opportunities of the housing sector in the city.

It was learned that Tijuana is at a crucial point of growth since it has an opening for the consolidation of new real estate developments.

Each panelist shared their appreciations on the performance of 2020. They coincided in the fall of the real estate market due to the Covid-19 pandemic, where from May and June the movement and the purchase interest was reinitiated that was boosted by new needs .

Some developers, as a result of the increase in demand, had to adapt both the payment method mechanisms, as well as include virtual visit processes, which strengthened the companies on an economic and personal level.

The pandemic accelerated decisions that were perhaps being postponed, and in that sense it was a positive year. The downside was the three-month paralysis as it was not an essential shift, which greatly affected contractors and suppliers.

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Other developers highlighted the benefits that remote work has brought to them and the use of technologies to stay connected with their employees. For office activities that do not require moving to the construction site, they found that they have become more efficient.

As for changes in housing products, they depend on the market and the region. Some companies focused on tickets of between a million and a half to three million pesos, a segment in which there were not many design changes. The biggest changes for the residential sector had to do with the way units are sold, an action for which various technologies were adopted.

Regarding the housing supply in Tijuana, they exchanged opinions on the inventory available for immediate delivery and the inventory under construction that meets the demand of the high-rise and residential segment, all against demand, so it could not be spoken as such of an oversupply .

The social problems in Tijuana are centered on lower middle housing and affordable housing. It is worrying that there is not a federal, state or municipal housing plan, which generates great uncertainty for developers where, as a real estate business, there is the greatest demand, however there is not enough supply.

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The main obstacle is related to mortgage financing. In Tijuana, the cheapest house that can be built is 42 square meters and it cannot be obtained for less than 800 thousand pesos, while Infonavit offers an amount of 600 thousand, so it is not enough to encourage production.

At this time, Tijuana is producing a quarter of housing of what was built a few years ago. Less than 8,000 are produced a year in Tijuana, so this implies challenges but also opportunities for developers since while cities and the industrial sector continue to grow, the demand for average housing will continue.

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Original note