The Commercial Real Estate Market in Mexico size was valued at nearly USD 260.3 Billion in 2022 and is anticipated to reach USD 348.64 Billion by 2031, expanding at a CAGR of 3.3% during the forecast period, 2023 – 2031. Growth of the market is attributed to the public–private partnerships, an improving economy, and increased government initiatives for infrastructure development. Commercial real estate is a property that is used only for commercial purposes or to offer a workspace, as opposed to residential real estate, which is utilized for living reasons.
Commercial real estate is frequently leased to tenants for the purpose of conducting income-generating operations. This vast category of real estate can range from a single storefront to a massive retail mall. Retailers of various types, office space, hotels & resorts, strip malls, restaurants, and healthcare facilities are all examples of commercial real estate.
Due to the immensely strong domestic market, notably the expanding middle class and growing performance of its industrial sector, the prognosis for commercial real estate remains optimistic. Because of the expansion in financial sources and real estate asset, the market offers fertile ground for development, investment, and diversification. Due to low oil prices and the strong US currency, American and Canadian customers are returning to Mexico after a several-year exile.
The Covid-19 pandemic affected the demand and supply of commercial real estate market in Mexico market. Lockdown across the globe, supply chain disorders, and oscillating supply of raw materials forced manufacturers to shut down production leading to unfortunate decline in market growth. Launch of vaccines to combat the Covid-19 pandemic is expected to contribute to the market growth over the forecast period.
Commercial Real Estate Market Trends, Drivers, Restraints, and Opportunities
- Public &private partnerships as well as an improving economy are projected to fuel the market during the forecast period.
- Increase in the government's efforts to construct infrastructure is key factor propelling the market expansion in the coming years.
- Weak economic activity following the pandemic and uncertain economic condition is estimated to hamper the market growth.
- Increase in government investment in infrastructure development to aid real estate is expected to create significant opportunities for the market players.
Scope of Commercial Real Estate Market Report
The report on the Commercial Real Estate Market in Mexico includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
|
Attributes
|
Details
|
|
Report Title
|
Commercial Real Estate Market - Mexico Industry Analysis, Growth, Share, Size, Trends, and Forecast
|
|
Base Year
|
2022
|
|
Historic Data
|
2016–2021
|
|
Forecast Period
|
2023–2031
|
|
Segmentation
|
Types (Office, Retail, Industrial, Logistics, Multi-Family, and Hospitality)
|
|
Geographical Scope
|
Mexico City, Oaxaca, Chiapas, and Puebla
|
|
Report Coverage
|
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
|
|
Key Players Covered in the Report
|
Grupo Posadas, Onni Contracting Ltd, Hines, NAI Mexico, and Groupo Sordo Madaleno.
|
Commercial Real Estate Market Segment Insights
The office segment is projected hold a major market share
On the basis of type, the commercial real estate market is divided into office, retail, industrial, logistics, multi-family, and hospitality. The office segment is anticipated to hold the key market share during the forecast period. Demand for office space is increasing steadily.
Office space is in high demand from a variety of sectors. Government and financial services maintain their historic leadership positions, while technology and media continue to grow as major users of office space. Mexico City offers Latin America's biggest inventory of contemporary, high-quality office space.
Mexico City is expected to dominate the market
On the basis of geography, the commercial real estate market is classified into Mexico City, Oaxaca, Chiapas, and Puebla. The market of Mexico City is anticipated to dominate the market during the forecast period. The economy of Mexico relies heavily on real estate and tourism.
The tourist industry is one of the country's most important growth drivers, and it has a big influence on the real estate market. The area around the Mexico City district is seeing the most growth as a result of this cross-pollination of industries. Several real estate projects, including museums, shopping malls, and music halls are benefiting.
Playa del Carmen is another Mexican city where tourism is having an impact on real estate but in a different way. Beach resorts, music festivals, carnivals, and a party culture that attracts almost 12 million tourists are all popular among North American youth. This highly seasonal but consistent tourism makes real estate management easier, and the calm off-peak hours reduce the cost of hotels and other residences. Foreign purchasers in Mexico City tend to invest in new construction or commercial properties mainly from Brazil, Spain, and the United States.
Segments
The commercial real estate market in Mexico has been segmented on the basis of
Types
- Office
- Retail
- Industrial
- Logistics
- Multi-Family
- Hospitality
Geography
- Mexico City
- Oaxaca
- Chiapas
- Puebla
Key Players
Competitive Landscape
Key players competing in the commercial real estate market in Mexico include Grupo Posadas, Onni Contracting Ltd, Hines, NAI Mexico, and Groupo Sordo Madaleno. Some of these players are using several market strategies including mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to increase their market shares.
Request For Customization
Enquiry Before Buying
Speak With Analyst
