The housing market in Monterrey showed a significant recovery during the first months of 2021. During the first quarter of the year, 1,320 units were placed, compared to the 3,300 that were sold throughout 2020.
Although “the market did not contract, what happened with the pandemic was that the prospects decided to lower their budget but not postpone their purchase decision; which emphasized the need for products in ranges below 3 million pesos ”, explained Mayela Sánchez, Market Research Director of 4S Real Estate.
The specialist highlighted that the housing market in Monterrey registered an increase of 62% in 1Q2021 compared to the same period of the previous year, however, she pointed out that this positive behavior does not apply to all areas or segments.
Sánchez explained that in this city in the north of the country, there is a close parity between the inventory and the economic composition of the population that is reflected in a more reactive market and that did not contract in the proportion seen in the rest of the country.
Currently, Monterrey’s inventory is divided 45.1% into residential plus (2.8 to 6 million pesos), 31.7% residential (1.2 to 2.8 million pesos), 16.6% Premium (6 to 18 million pesos), 4.1% Premium Plus (+18 million pesos). The Medium segment has a lower offer of products with 2.5% (.5 to 1.2 million pesos). Only 13.2% of the current inventory is below 2 million pesos.
Likewise, there are 186 vertical projects, distributed in the Monterrey Metropolitan Area, which is made up of 18 defined areas. According to the expert, Centro is the one with the largest inventory, diversification of supply and is the leader in sales as of 1Q 2021.
“That tells us about the push that the incorporation of the product has had in a suitable and also more versatile ticket,” he said. In addition, it is consistent with the work of regeneration, redensification, restructuring, and conceptualization of niche products in the area, which has allowed a product for everyone.
Santiago is located in the second place with the highest number of sales, followed by San Nicolás and Santa Catarina. On the other hand, Guadalupe and Apodaca, have been decreasing their horizontal offer due to lack of properties, migrating to vertical housing with good acceptance, given the scale of the product or number of projects.
Regarding sales dynamics, in 2021 the residential segment in Monterrey showed an increase of 123% compared to 1Q 2020.
On the other hand, the residential plus segment had a slight decrease; While the premium sector, despite being the market is smaller due to the socioeconomic composition, it also had an increase in its sales compared to 1Q 2020.
Finally, the premium plus segment shows a 41% decrease compared to 1Q 2020 sales, which shows a different dynamic than the other segments with an extremely slow recovery.