Mexico Real Estate Outlook. First semester 2023

Summary

With growth of only 0.4% in 2022, the recovery of the Construction sector remains distant. The number of mortgage loans granted during 2022 is 8.9% lower than in 2021, while the amount fell 4.9% in real terms. There is a high concentration in mortgages at state level.

Key points

• Key points:
• Commercial banks placed mortgage loans for almost 300 billion pesos in 2022, 70% more than housing public institutes
• Construction advances only 0.4% in 2022, so the recovery of the sector remains distant despite the improvement in Civil Works
• Ten states had in 2022 average housing value above two million pesos in bank mortgage loans; confirming the regional advance of higher value housing
• Housing contributes 54.4% of the value of non-financial household assets, with a positive long-term perspective when associating the expected appreciation of housing in Mexico
• The participation of new middle and residential housing increases at national level in public institutes and in banks. In 2022, 1 out of every 2 loans was allocated to this segment

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