Real Estate Outlook Mexico. First semester 2025

Summary

Construction GDP grew 2.6% thanks to a 6.9% increase in building construction, despite the decline in other subsectors. The mortgage market increased its number of loans by 10.7%, primarily due to the recovery of affordable housing.

Key points

• Key points:
• Construction GDP grew by 2.7%, driven by Construction, which had a positive variation of 6.9%, while Civil Works fell by 8.7%, as expected since mid-year.
• The number of new mortgages grew 10.2% and 2.7% in real amount, driven by Infonavit, but the banking sector showed contraction.
• High concentration of mortgage activity in the three main metropolitan areas, with low delinquency and potential development in the northern states.
• Between 2016 and 2022, housing prices rose 58.4% and rent 16.5%, while labor income only grew 4.1%, which has generated an overrun of housing costs, especially in households without access to Infonavit or Fovissste.
• Steel products for construction prices faced by builders are more influenced by domestic issues than by tariffs on international trade.

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