The arrival of the vaccine is the best hope for the early reactivation of the world economy.
The housing market in Mexico is very important since historically it has contributed around 6 percent of the Gross Domestic Product to the country. However, with the declaration of the pandemic in the first half of 2020 and due to mobility restrictions, this sector was greatly affected. That is why the news at the end of 2020 of the release of the COVID-19 vaccine represents the best hope for the sector.
Vivanuncios, eBay’s real estate portal, tells you how the arrival of the vaccine will influence the country’s real estate recovery.
Recovery of the construction sector
Construction was one of the real estate sectors most affected by the declaration of the health contingency in March, as it was included as a non-essential activity, causing a sudden stop in its activities.
Although that changed in May, the pandemic caused inevitable changes in the sector, such as a reduction in the number of workers in the different real estate projects, which caused the delay in their progress and deliveries.
With the arrival of the COVID vaccine, it is expected that the pace of these activities can be resumed to return to the levels it showed prior to the pandemic.
Visits to properties
Although today digital resources such as videos, showrooms, and virtual tours have greatly facilitated the approach to real estate, these tools are a great complement to face-to-face visits, which are still the best way to get to know any property and invest in it.
The application of the COVID vaccine will greatly reduce the risk of contagion by direct physical interaction, which will restore the confidence of both buyers and sellers to visit and show properties, respectively.
Return of mobility
With the adoption of education and remote work, the mobility of inhabitants in urban centers was drastically reduced. However, with the application of the vaccine, the workers will gradually return to the offices and the university students to the classrooms, promoting a real estate recovery in the housing rental sector.
Likewise, the influx to commercial centers and business premises will return little by little, benefiting the owners of these properties. Although not only that but thanks to the growth of electronic commerce, there will be greater demand for other commercial spaces such as warehouses and logistics centers.
Similarly, the application of the COVID-19 vaccine is expected to allow the progressive return of massive entertainment events, such as fairs, concerts, expos, exhibitions, and sporting events.
When activities will fully recover
All this paints a favorable outlook for the real estate market in 2021 and in the coming years, although it is difficult to pin down an exact date for the return to the old normality. Many experts have even dared to predict that it will not return, but that from now on we will live in a New Normal that will include many of the changes brought about by the pandemic, such as health measures and the massive use of digital resources.
The vaccination scheme dictated by the Ministry of Health of Mexico contemplates first immunizing people over 60 years of age, who are a minority in our country; According to INEGI’s National Survey of Demographic Dynamics (Enadid) 2018, around 13 percent of the inhabitants belong to this segment and apply the COVID vaccine in a descending way by age blocks. Therefore, it will take at least a couple of years to cover most of the population, tentatively until March 2022.
Taking this into account, the economy is expected to return to the same pre-pandemic levels until 2025. However, the real estate sector is expected to stabilize earlier, around 2023, also thanks in large part to large financing facilities. driven by banks and housing institutions.
This is the scenario expected for the real estate market in 2021. In general terms, this year is expected to lay the foundations for a recovery that will be consolidated within the next 2 to 5 years.
Remember that in this real estate recovery scenario, you can rely on online tools and web portals such as Vivanuncios, to advertise or find your ideal home for sale or rent anywhere in the country.