The Mexican real estate market is undergoing a significant transformation, driven by growing demand for homes, offices, and commercial spaces. Foreign investment has been a key driver of this growth.
In this edition of the blog, we’ll explore how nearshoring is affecting home construction in the country. Although business relocation (nearshoring) is still in its early stages in terms of its direct impact on the residential sector, its development should be more closely aligned with the pace of foreign investment. The shortage of homes in areas near new businesses is already driving a notable increase in land values.
How Nearshoring Affects Real Estate
Juan Kasuga, co-founder and CEO of Mexico Mortgage Hub, points to rising prices for developable land in areas with high levels of industrial activity, such as Nuevo León, Jalisco, Baja California, and Querétaro. Rising land prices are crucial to the sector because they directly increase the final price of homes. Meanwhile, foreign investment boosts the local economy, which in turn drives up housing demand. Employees at these companies are looking for homes close to their workplaces, energizing the residential real estate market for both rentals and purchases.
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Guadalajara and Nearshoring
The growth of nearshoring has had a positive impact on several Mexican states, turning certain cities into key destinations for companies looking to establish operations.
Guadalajara, in particular, saw notable nearshoring demand during the first quarter of the year, with more than 77 thousand m² leased. The city has established itself as a preferred choice for investors, outpacing other cities in the Northeast region, such as Monterrey and Saltillo.
According to Daniel Martínez, the brand’s Marketing Director, Guadalajara is on investors’ radar thanks to its attractive nearshoring potential. In addition, Jalisco is working to attract 19 Chinese companies in sectors such as electric mobility, fiber optics, and high technology, out of more than 400 Asian companies interested in establishing operations in Mexico through this trend.
The growth of nearshoring is transforming areas that were previously overlooked or undergoing revitalization. Cities that once went unnoticed are now increasingly attractive to foreign investors and to developers of homes, offices, and commercial spaces.
This has led developers, builders, and real estate companies to see opportunities to diversify their portfolios in these cities. However, residential construction must be carefully managed to ensure existing infrastructure can support population growth. As a mortgage executive, it is essential to pursue ongoing training to meet the new challenges and serve the new types of clients emerging in this dynamic landscape. Don’t forget to subscribe to our weekly newsletter to stay informed about the sector.
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