A factor like this gives warning signs in international markets, in the housing sector it can be seen as an area of opportunity.
3 min read
The opinions expressed by collaborators are personal.
If you are thinking of buying a house or apartment in dollars, at Propiedades.com we tell you the elements to consider when the exchange rate is high and the areas of opportunity that you can find in it.
The dollar in the real estate market
According to data from Banco de México, the interbank dollar has already crossed the psychological barrier of 20 pesos. In one day it increased 1.3 percent when sold at a price of 24.97 pesos per dollar as of March 24.
From that date and until March 18, it continued to increase, reaching a maximum sale of 24.09 pesos.
Although a factor like this gives warning signs in international markets, in the housing sector it can be seen as an area of opportunity – if you are interested in acquiring a property as an investment tool.
For Leonardo González, Real Estate analyst at Propiedades.com , buying a house in dollars is a long-term strategy. When trading at a high exchange rate, there is the possibility that the property's capital gain will increase. In addition, there are more possibilities to resell it in dollars in the future.
“Dollarization is a benchmark that serves as currency hedging in the face of periods of volatility,” said the expert.
In addition, when you take this currency as an axis you can compare properties with characteristics similar to those offered in other parts of the world.
How is the market behaving in Mexico?
On the other hand, according to data from Propiedades.com , at the end of October 2019, the total inventory quoted in dollars at the national level – both for houses and apartments – was 4,305 units. While in mid-March 2020 2,036 units were registered.
As there are few properties on offer, there is a greater chance that the demand for them will increase. Consequently, you could negotiate a better sale closing.
The same occurred at CDMX level since, in October 2019, the supply of houses and apartments listed in dollars registered 451 units. Towards December of the same year it went to 1,700 properties and, in mid-March, it fell to 176. This entity represents 12 percent of the country's inventory.
Where to buy or sell real estate in dollars?
Leonardo González explained that if you are going to buy or sell a property in dollars, it is advisable to do it in border cities, tourist destinations, clustered areas, large metropolises and emerging nodes with a residential and residential plus profile.
The expert stressed that these places are characterized by having high capital gain, sale liquidity, carrying out new investment projects and being attractive to foreign, expatriate or floating populations.
“The most active places in the dollarized valuation practice observe a more open and less vulnerable real estate cycle towards the global environment,” added the specialist.