Home sales drop 50% in Mexico City

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In the first quarter of 2019 there were 2 thousand 800 units in CDMX, while in 2018 they were 4 thousand 20.

Economic uncertainty and lack of clarity in the sector’s policy influenced the fall.

During the first quarter of 2019, in Mexico City (CDMX), the sale of new housing plummeted 31 percent, with respect to the same period of the previous year, which represented the worst drop in at least three years in the placement, according to data from the real estate consultancy Tinsa.

The data of the firm detail that in January and March 2 thousand 800 houses were sold in the capital of the country, less than the 4 thousand 20 units placed in the same period of 2018.

Experts explained that the fall is due to the impasse that was generated in the sector by the change of Government, by the lack of clarity in the new housing policy and the economic uncertainty that exists.

“There is a pause in the housing sector, because there are no clear rules and it is very difficult for investors to continue with the delivery of housing, which influences that no new investments are made,” explained Jesus Orozco, general director of Tinsa.

Alejandro Kuri, former president of the Mexican Association of Real Estate Professionals (AMPI), added that job uncertainty also affected purchases.

“People do not know if they will keep their jobs and this delays the decision of the investment,” Kuri said.

The specialists reported that this year the fall was more pronounced due to the provisions of the Government of the CDMX, headed by Claudia Sheinbaum, in real estate matters, since projects under construction or close to delivery have been suspended and there is also a break in the granting of permits for new developments.

“The change of the different orders of government and the decisions they make in the revision of project permits creates an environment of cautious investments and when there are fewer projects renewing in the market, there is a lower sale of housing,” said Claudia Velázquez, Director of Softec operations.

Velázquez hoped that this break will be regularized in the coming months, since he considered that the issue of housing in the central area of ​​the country only has two possible scenarios: stabilization or improve their numbers at the end of the year.

The experts considered that this fall in the industry does not mean a crisis in the sector.

“There is no national housing crisis; It is very different to talk about crisis, because there is no money, because interest rates went up, or because there are massive job losses, but we are not in that scenario, “Orozco clarified.

Affects Metropolitan Area

In the Metropolitan Area of ​​Mexico City (ZMCDMX), which also includes municipalities of the State of Mexico and Hidalgo, the sale of new housing fell 24 percent compared to the same period of the previous year.

In the first quarter of this year, 6,107 properties were sold, while from January to March of 2018 8,41 were placed, according to Tinsa’s information.

In this sense, the residential plus housing, with values ​​above 4 million pesos, was the most affected, its sales fell 50%, while in 2018 there were 2 thousand homes between January and March, this year they moved little less than a thousand properties.

“In the residential segment plus there is a strong loss, most of the housing sales of this type are from investors and I think there is a certain aversion to risk at this time. With all the economic uncertainty, people are still cautious, “said Tinsa’s manager.

Housing of the traditional, medium and residential type also recorded negative numbers, but Velázquez considered that this may be temporary, since the patrimonial consumer who buys in these segments continues with his will to buy in a normal way.

In contrast, low-income housing, with a price lower than 400 thousand pesos, had an increase in its displacement of 48 percent in the first quarter, even though in this year the housing subsidy did not appear.

Orozco warned that in the north of the zone, in Tecámac, Zumpango and Huehuetoca, the developers are not building new projects for popular housing, which would lead to an affectation in the market, since these units have demand.

Source: el financiero

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