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Nearshoring: an opportunity for the real estate market in Mexico


Mexico has positioned itself as an attractive destination for nearshoring, thanks to its geographical and commercial proximity to the United States
Nearshoring: an opportunity for the real estate market in Mexico


Nearshoring is the process of relocating the production of goods and services near the consumer markets, reducing transportation costs, delivery times and risks associated with global supply chains. This phenomenon has accelerated in recent years, especially after the Covid-19 pandemic, which exposed the vulnerabilities of depending on distant suppliers.


Mexico has positioned itself as an attractive destination for nearshoring, thanks to its geographical and commercial proximity to the United States, its main economic partner, as well as its skilled labor force, its industrial infrastructure and its political and macroeconomic stability. According to the Bank of Mexico, 16% of companies nationwide reported increases in the demand for their products or in foreign direct investment as a result of nearshoring.


Nearshoring has a positive impact on the Mexican real estate market, especially in the industrial and residential sectors. On the one hand, the arrival of foreign companies generates a higher demand for spaces for the installation of factories, warehouses and offices, which benefits the real estate companies that own or develop this type of properties. On the other hand, the increase in employment and income derived from nearshoring boosts the demand for housing, both for local workers and for expatriates who move to the country.


Some figures illustrate the dynamism of the Mexican real estate market associated with nearshoring. According to data from the Federal Mortgage Society, the net absorption of industrial spaces in the country was 2.8 million square meters in 2022, 40% more than in 2021. Likewise, the vacancy rate decreased from 6.4% to 5.2%, while the average rent increased by 6.7%. These indicators reflect a higher occupancy and a higher profitability for the owners.


Regarding the residential sector, there is a preference for traditional and residential housing, which represent 50% of the Mexican real estate market, compared to 26% of economic-popular housing. This is because buyers seek better living conditions, security and location, as well as greater credit facilities.


An area that has benefited especially from nearshoring is the Riviera Maya, where there has been an increase in demand and prices for vacation properties. This is because many foreigners who work in companies installed in Mexico take advantage of the opportunity to acquire a second residence in a paradisiacal tourist destination, with an excellent offer of services and a high capital gain.

Nearshoring represents an opportunity for the Mexican real estate market, which must be seized with a strategic and sustainable vision. It is necessary to boost housing production to meet current and future needs, as well as to promote orderly and environmentally friendly urban development. Likewise, it is important to strengthen the country’s competitiveness as a nearshoring destination, offering legal security, tax incentives and support for innovation.


If you are interested in investing in the Mexican real estate market, we invite you to contact us to offer you the best options according to your preferences and budget.


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