Future Outlook for Mexico's Real Estate Market

Experts predict a gradual recovery in Mexico's real estate sector, with a shift towards vertical housing and logistical developments. Challenges include security issues and regulatory hurdles.


Future Outlook for Mexico's Real Estate Market

The general director of the real estate company regia 4S Real Estate, Ignacio Torres, indicates that a gradual recovery is expected in the retail, office, and new project segments in the real estate sector in Mexico. Although the industrial segment is no longer the main protagonist, it continues to maintain considerable relevance. An increase in the number of residential developments, sustainable growth in the industry, and a reactivation of previously non-priority sectors are anticipated.

According to the results of a survey, vertical housing is expected to perform the best this year, reflecting a trend toward optimizing urban space and a growing demand for more accessible and connected housing solutions. On the other hand, horizontal housing shows signs of recovery, indicating a diversification in market preferences. Meanwhile, the industrial and logistics sector has decreased in importance, reflecting a shift in the priorities of real estate development in Mexico.

Ignacio Torres comments that a good performance is expected this year for the real estate sector in general, highlighting the anticipated growth for both vertical and horizontal housing, as well as the recovery of the commercial, hotel, and office segments. He points out that Mexico faces various challenges, such as nearshoring, insecurity, legislation, and the execution of urban development plans.

The study "The Real Estate Outlook Mexico 2025" reveals a transformative stage for the sector, driven by changes in developers' priorities, economic challenges, and new consumer demands. Insecurity is presented as the main concern, followed by high financial costs, restrictive regulations, and the lack of a clear long-term legal framework, which complicates the management of permits and limits agility in the development of new projects.

The consulted entrepreneurs believe that insecurity is the main obstacle to achieving better performance, followed by nearshoring, government legislation, and new regulations, as well as obtaining private capital and flexibility in payment schemes for buyers.