GENERAL COMMENTS ABOUT THE REAL STATE MARKET
It´s traditionally said that there is no safest investment that real state. However, this phrase has been hurt in the last few years by many reasons.
While our northern neighbors had their own real state crisis in 2008, which brutally impacted the market generating a global economical crisis, we have been suffering the effects of another crisis, but from a radically different origin.
House construction has declined during the last years and, despite some recent signs of a possible recuperation, the panorama seems to be changing.
There is no doubt that the crisis effect provoked by the pandemic, has generated overwhelming changes, especially in home sales and office rent, which experiences an enormous recoil. The “work from home” experience has cleary shown that it isn´t indispensable to have personnel inside corporate offices. Sales and other meetings can be achieved by virtual platforms.
On the other side, some traditional sales channels are being replaced by “online sales”, where it isn´t difficult to visualize a growing trend. Commerce experiences a major reconstruction that allows companies to adapt to the new times. One of the effects of these changes is a surge of companies that offer delivery services, with food deliveries expanding the most. These changes also influenced public transport which suffered an important reduction during the pandemic. Another effect is in employment where, in the best case, will see modifications in the duties of all job positions.
Construction projects that remained active were those dedicated to health services, such as hospitals and sanatoriums. Yet, some believe that the existence for medical clinics will also experience an irremediable reduction once doctors implement online consults delievered remotely. Restaurants and bars adapted by implemented sanitary measures and prevention by operating at reduced levels.
We are beginning to make huge steps in a process that evolved slowly at first, but that is transforming fast over these last two years. We will see new architecture designs, with more open spaces, and improved ventilation systems for better air circulation that warrants health safety. Even parks and public areas must adopt the necessary measures for securing a clean and health environment.
Curiosity, as all this happens, we see scandals related with the real state market that provoke public reactions. I am referring to a home in Houston, property of an executive of a major contractor of Pemex (Mexico´s state-owned oil company), which was rented to the first son of a person with the modesty and easiness of President Andres Manuel López Obrador, who lives in a palace in front of Zocalo plaza in Mexico City.
I remember something similar happen in some years with the denominated “White House”, interesting, the livelihood of our government and their families.