By Nidia Torres Salazar.
In the wake of the coronavirus pandemic, economic uncertainty is a major concern. However, what will happen to the real estate market in Mexico, specifically, Los Cabos?
Although a recession may feel like a challenging time, the forecast points to a greater impact in certain sectors of the real estate industry. Middle and low-income properties could remain more stable, while sectors such as residential and residential plus will have experience a greater impact, therefore, the luxury residential property market is forecasted to remain stationary.
In all segments, many of the stakeholders will begin to innovate and offer new tools in response to current circumstances, such as banks that, although they will be more selective when offering loans, their interest rates will remain low or in a downward trajectory.
The pandemia must be taken seriously and it will be necessary to follow all the pertinent measures. The real estate industry will continue as real estate developers have great confidence in the country, a situation that has been demonstrated – time and time again – in Los Cabos, with the opening of more than 16 tourist and residential development complexes since 2016.
On the other hand, today we are witnessing the use of existing technological platforms in the real estate sector to streamline current and future transactions, which confirms that, thanks to the entrepreneurial nature of both real estate developers and real estate advisers, we will see changes that will generate new ways to transact and more efficient processes for the benefit of the industry. Given the adversity we are experiencing, it will be very important to innovate to adjust our business models to the “new normal”.
Although the outlook is not encouraging around the world, the permanence of the real estate market is indisputable, but its progress will be slowed down, until confidence by our clients turns their gaze towards home purchases. Fortunately, Los Cabos continues to be a popular destination for both tourism and residents, so we hope that the market will regain fluidity.
Finally, the human being – in essence – is a social being. The social isolation by COVID-19 we are experiencing is similar to others pandemic that occurred just in the previous century.
During those challenging times our homes symbolized the shelter and safety that our families depended on to keep everyone safe. In this sense, our houses reaffirm their importance, ratify that they are the center of family, heritage and stability.
The temporality of what we will live is a fact, the economic damages will eventually be overcome, the new lessons will become part of our essence and will allow us to have a more complete perspective of what, as an industry, we must correct and what we must keep intact to achieve that our homes, our heritage, continues to give us the certainty, we need to remain resilient, and in front of the challenges to come.