‘Superpeso’ shoots up 28% real estate income – El Financiero

The appreciation of the peso against the dollar In the last year, rental prices for industrial properties have increased by up to 28 percent. In some states of the country, however, nearshoring have mitigated the impact of the ‘superweight’ in dollarized prices, and helped release historic demand, experts said

Jaime Fasjapresident of the Association of Real Estate Developers (ADI), told The financial that these effects have been felt a little more in the real estate sectorwhich today is experiencing a historic boom due to the relocation of production chainshelping the industry and investment attraction to overcome a strong weight.

“By having an appreciation of more than 20 percent (in the currency), the cost of construction in pesos, let’s say, remains the same, but that makes construction in dollars 20 percent more expensive, which is why it has pushed incomes upward. We have seen rents, depending on the market, rise between 15 and 20 percent, which we have not seen in many years,” he declared.

Information from the Datoz real estate site, only In the first quarter of 2024, Chihuahua, Aguascalientes and Nuevo Laredo experienced growth in the cost of rent in dollars per square meter of 28, 22 and 21 percent, respectively, being the highest variations in the country.

While markets like Mexico City, Monterey and Tijuana, For example, they recorded increases in rental prices per square meter of 19, 10 and 7 percent, on average. On the other hand, despite the high construction costs, the capital, Reynosa, Guadalajara and Hidalgo stand out for the start of new industrial works, and the most in-demand cities suffer from a lack of work due to high occupancy.

“We see an impact, there are certain costs that are in dollars, although the vast majority of construction are inputs that are generated and manufactured in the country, so there the impact is minor, the impact there has rather been the inflation that today in Today it has already been quite regularized and has helped prices to have more certainty,” he added.

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Sergio Arguellesgeneral director of Finsa highlighted that The main impact is reflected in the costs of inputs for construction and that the effects of ‘superweight’ They have cost up to 10 percent in the exports of Mexican companies.

On the other hand, the president of the ADI highlighted that another of the sectors who was affected by the ‘superweight’ it was the touristwhich caused less spending by visitors, however, today it has returned to normal.

In February 2024, the income of foreign exchange The total spending of visitors in Mexico amounted to 3,176.5 million dollars. That is, 13.2 percent higher compared to the same month in 2023. While throughout last year, foreign exchange earnings from international visitors recorded a record figure of more than 30,809 million dollars, an annual increase of 10 percent. , according to government figures.

Nearshoring reverses impacts

Sergio Pérez Castilleja, executive director of Latam corporate accounts at Newmark, said that the problem of exchange variations due to the ‘super peso’ is much smaller due to the supply and demand that the relocation has left in some primary markets in the country.

He added that the Demand for industrial warehouses for relocation has skyrocketedsince only from 2010 to 2020 there was a record of a demand of 1.4 million square meters, which doubled in 2021 and in 2022 it grew up to 40 percent.