Mexico City (Nallely Hernández) – The home marketing after the Covid-19 You will see a slowdown in prices and the need for new sales schemes in the face of low demand, industry members agreed.
In the first quarter of 2020 alone, still without effects from the coronavirus, house prices increased 7.06 percent against the same period in 2019, its lowest annual growth rate since 2016.
How will Covid-19 affect housing prices in Mexico. | Photo: Reforma
However, Jorge Paredes, CEO of Realty World, opined that the tendency to moderate prices is due to the drop in demand, which will be more affected by the impact of Covid-19.
“The index (of house prices) was rising, as it has generally done, but with the reduction in demand it will definitely reflect a reduction,” said the specialist.
“We are going to see (impact) on the placement of housing, on demand and on the supply side.”
The specialist anticipated that in the medium and long term there will be more expensive real estate. However, there will be a gradual decline, which will depend on the reactivation of demand.
Carlos Medina, vice president of housing at Concanaco, He said that construction companies will have to find new sales models so that potential buyers with low income or unemployment can access to make their purchases.
“We have to make very precise analyzes of demand, because the issue of employment and salary reductions also impacts demand, and under these new realities we have to have adequate programs, products and projects,” the businessman anticipated.
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Due to the changes that the labor market has undergone, Medina pointed out that it is necessary not only to think about new construction models, but also about financing schemes that give greater facilities. “One theme is to build houses and the other is who we build them for”
“Products and projects must be adapted so that the purchasing power of workers can allow them to acquire a home.”
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Gonzalo Méndez, head of the Canadevi, urged to formalize programs such as financing for temporary employees and Infonavit schemes, such as considering the salaries of workers in the two-month period prior to the pandemic and not reducing them, to serve the segment of employees who have already They cannot access a credit due to loss of income or loss of employment.
“At Infonavit There are very important programs that are being managed to reactivate the market, “he said.
Jorge Paredes considered that the housing companies will have to reduce their profit margins, as well as offering incentives “in kind”, for example an amenity or discounts, in order to attract the market.