New housing and work models redefine the scenario for real estate development in Mexico City (CDMX).
Faced with these challenges, developers seek to integrate the provision of work spaces and alternatives that solve the housing deficit with a low urban impact, such as smaller units and models of coliving.
“Flexibility and sustainability have become essential components for the success and resilience of cities, especially with the expansion trend. Collaborative and flexible spaces are emerging as innovative solutions to face these challenges,” says Karen Scarpetta, CEO of WeWork Latin America.
With a portfolio of 22 units of coworking In Mexico City, Guadalajara and Monterrey integrated from 2016 to date, the chain of collaborative spaces considers that hybrid work will continue to favor labor flexibility, but also address the mobility of collaborators.
Scarpetta assures that independent users and those in business segments seek to reduce distances, times and costs on trips as a trend in the use of work spaces where urban expansion finds another reason for being.
Tailor-made home
On the other hand, the housing market faces challenges such as the fact that a quarter of the 12 million families in Mexico City demand housing for up to $2 million pesos.
This factor, combined with the housing deficit and the drop in the pace of construction of new products, pose a scenario of opportunities for a market in which around 20 thousand real estate purchase and sale transactions are carried out, according to a report by 4S Real. Estate.
Between 2018 and 2023, the mortgage market contracted 11%, where new housing decreased by 21% compared to this indicator.
From this perspective, opportunities for developers exist in the concentration of projects where only 5% of the offer focuses on the ticket of $2 million pesos, when it is a market of more than 10 thousand units.
This dynamic has led to a growth of 37 to 46% in the share of used housing nationwide, given that right between the medium and residential segment, 4 out of every 10 sales are used. Therefore, currently 3 out of every 10 new homes sold in Mexico are in the mid-segment with average costs starting at $2.4 million pesos, where new homes are also predominant.The lack of projects and affordable product for the buyer has distanced the development from the potential where housing is most required, which is an average market with values of more than $1.7 million pesos. Analysts consider that this context opens up potential in the recycling of areas, where the participation of developers and the urban management of the authorities would allow the development of the city to detonate.
