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2020 was a year when the performance of many sectors was tested due to the COVID-19 pandemic. However, various efforts have been made to cope with this difficult situation. What can we expect from the real estate sector in 2021? The real estate portal Propiedades.com released its estimates in a statement.
What will happen to the implemented public policies?
“In the real estate sector in 2021, we can expect mortgage dynamics to play a fundamental role in the plan to reactivate the economy. Infonavit and Fovissste will innovate in developing new measures to deepen finance and housing acquisitions, ”explains Leonardo Gonzáles, real estate analyst for the property portal Propiedades.com.
According to the expert, the institute of the National Housing Fund for Employees will continue to be the leader in the mortgage industry. This is due to the preponderant role it plays in all connections in the real estate sector.
“Social mortgage banking will be more reactive to the observed minimum interest rates. This year will be key in reporting the impact of recent reforms in the Infonavit Act. Both this institution and Fovissste will play an important role in ensuring housing and property rights, ”he adds.
Historically low interest rates
In 2020 and as part of the public policy to reactivate the economy, Banxico lowered the key interest rate. Thanks to this, the closing at the end of the year was 4.35 percent and thus at a historical minimum level.
“By 2021, the mortgage rate should be lower than at the end of last year. This will be based on the objectives set by the central bank, ”emphasizes González. The analyst explains that commercial banks’ mortgage placement rate is showing a period of high competitiveness. So the adjustment of the average rate in the industry depends on this situation.
“The mortgage rate is long-term, which means that it is to some extent tied to the short-term risk-free target rate. This will also play an important role in limiting the adjustment of this rate to the new credit environment, ”he mentions.
How sales and rentals will develop
In 2020, the housing market was still in an adjustment phase that prompted the sector to define new business goals. Both in residential and commercial areas.
However, depending on the extent of the economic crisis, fluctuations in the delivery and rental of business premises are taken into account according to the development of sales and warehouse rationing.
“(In terms of sales) the expected effective demand according to the SHF is 856,000 residential units. The expected environment in 2021 will create new real estate markets due to the management of new CBDs. This will strengthen the new commercial offer in different areas of the city, ”he explains.
Online sales models will be retained
Quarantine and contagion prevention measures have been maintained in many sectors to ensure the least amount of human contact. This has resulted in the use of alternative channels to make purchases that fuel economic growth.
“The substitution of consumption in e-commerce channels was observed throughout the quarantine. This will further contract the business on traditional channels. We could expect the real estate sector in 2021 to see the residential segments have a dynamic innovation process in housing solutions, ”he says.
Thanks to technology, potential customers are better informed today through more transparent tools and data, according to the expert. Likewise, they have a stronger real estate orientation focused on solving their housing problems based on the functionality of their homes.
“(For 2021) a deepening of the online sales models and the use of new technologies would be expected. For example augmented reality, virtual reality or demos for selling with the Internet of Things (Internet of Things) ”, he predicts.