The ”foreign buyers” in Yucatan is changing the real estate sector

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The economic benefit in the housing sector continues to rise, although in global terms there has not been a significant increase in the number of homes sold.

In recent years, the sale of affordable housing in Yucatan has decreased and that of the middle and residential segment has increased, largely due to the demand of foreign buyers, reported Sergei Ramón López Cantón , president of the Yucatan delegation of the National Chamber of Industry of Housing Development and Promotion (Canadevi).

Due to this phenomenon, as he explained, the economic benefit in the sector continues to rise, although in global terms there has not been a significant increase in the number of homes sold.

The leader pointed out that there are several factors that have affected the displacement of affordable housing. Among them, he cited a decline in the credit capacity of many people, including those entitled to official institutions.


“One reason is that the subsidies were removed,” he added. “They were necessary so that many could reach the value of the house, and when they were withdrawn, the acquisition of a house was complicated for the rightful claimant.”

Engineer López recalled that in 2018 the last package of federal subsidies for the purchase of housing was released and since then the demand for the economic segment has been declining.

On the contrary, he continued, the demand for middle and residential housing has been on the rise throughout the country and Mérida is no exception, in this case of people who come to the State attracted by public security and legal certainty.

Mérida destaca como polo inmobiliario del país – Yucatán a la mano

“The type of housing that these people can acquire is the average and residential. The uptick that we see has a lot to do with that,” she noted.

Real estate bubble, but not in houses in Yucatan

The National Chamber of the Housing Development and Promotion Industry (Canadevi) ruled out the existence of a real estate bubble in the segment of housing complexes in Yucatan, but warned about the problems that the so-called residential development projects can generate.

“There really is no real estate bubble in what has been real estate, housing,” said Sergei Ramón López Cantón, president of the Chamber in Yucatán.

“Where we see with concern that there is a very large offer is in the projects of the so-called investment lots, some without services and others with some services, but at the end of the day without adhering to current regulations,” he said. “We see that these developments are proliferating.”

As he indicated, this phenomenon should be a cause for concern for all of society, because if a bubble of this type bursts – which is not one of housing complexes, he insisted – it could have implications in several areas.

Reduction of new homes in Yucatan

In an interview, engineer López Cantón also said that there are encouraging prospects for housing developers, with recovery on the horizon.

Yucatán, estado de oportunidades

He recalled that when he protested as president of the Yucatán de Canadevi delegation , at the beginning of last April, he provided figures that show a favorable trend: in 2020, 8,558 new homes were sold and in 2021 the number increased to 9,554, which means an increase of 12%.

However, it is a smaller quantity than what was sold in 2019, before the emergency arose due to the Covid pandemic. That year, 10,009 homes were sold in Yucatan.

“We are still a little below what was sold in 2021, but in 2022 we are anticipating the displacement of around 10,500 homes, that is, we must exceed last year’s number,” he pointed out.

The leader pointed out that in reality since 2018 there was a reduction in the number of new homes , but that trend was not reflected in the economic spill, which was maintained until in 2020 it had a small drop.

What are economic and medium housing?

“What is happening is that affordable housing has stopped selling and now middle-income and residential housing is being sold more,” he added. “This has meant that, although the number of homes decreases, the average value of the house favors a stability in the spill.”

According to statistics from the Chamber, in 2019 the economic benefit was 6,400 million pesos; in 2020 it fell slightly to $6.2 billion and in 2021 it grew to $7.8 billion. In 2022 it is expected to be $9.5 billion.

On the causes of a drop in the sales of average housing and an increase in the average or residential type , the president of the local Canadevi delegation explained that there are several factors, as we detail in a separate note.

He also insisted that there are favorable expectations and this represents a good sign for the State, because it means more jobs and more economic movement. He added that the housing developers work in close coordination with the authorities.

Regarding the investment lots and the controversy they generate, he stressed that the concern lies in what they represent for the State.

Many do not comply

“I cannot speak of a generality in this type of projects, because we have seen diversity, but the constant is that many of them do not comply with current regulations,” he stressed. “We will always be in favor of real estate developments, without exception, complying with the rules. Doing so gives buyers certainty.”

“In the investment lots, by not complying with the regulations in some cases, all this is put at risk. By not having the basic infrastructure, public services or access to them, the buyers’ assets are put at risk.

Source: yucatan.com.mx

The Yucatan Post