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Mexico City: the area with the highest growth in real estate in the Mexico

This time, we interviewed Ana Laura Monsivais, founder and real estate broker in Home del Valle, who will tell us about some outstanding aspects of the Mexican real estate market in the capital.

HalloCasa: “Good afternoon Ana Laura. Thank you very much for this interview! Based on your experience, we are looking forward to get some information about Mexico City and the real estate market in the capital.”

Ana Laura Monsivais: “Good afternoon, thanks to you for giving me the opportunity to speak with you about this subject and with great pleasure to send a greeting to the audience all over the world!”

HalloCasa: “Please introduce yourself to our audience, who is Ana Laura Monsivais?”

Ana Laura Monsivais: “I will begin by telling that I am a diplomat (now retired) and that I lived several years in different countries of the world such as Canada, Spain, France and the United States. I subsequently returned to Manhattan in New York City to join the “Corcoran Group Real Estate” directed by Barbara Corcoran where I had the opportunity to get started in real estate. Then, I returned to Mexico in 1994, 23 years ago, seeing the need for returnees and expatriates to find housing after having been away for so many years or simply not knowing it. I started my own company with the “Relokation” branch to fill the gap to those needs, thus creating “Home Del Valle Bienes Raíces”. This year, I was nominated for the “Best Real Estate Agent of Mexico City” by “Vivanuncios”. a nomination that fills me with pride and gratitude.”

HalloCasa: “Thank you so much. Barbara Corcoran is obviously known, even outside the real estate business. That might have been a great experience!

Now, tell us now please about your city and your real estate business in Mexico City, the beautiful Mexican capital.”

Ana Laura Monsivais: “Well, Mexico City is a totally international capital with a dense population and with a lot of opportunities inside the real estate market. Along the residential spaces, commercial constructions, and temporary leases, it offers various kinds of long-term opportunities for investors such as shopping malls, or any other kind of real estate construction. In general, the real estate market today is attractive for both nationals and foreign investors.”

HalloCasa: “Interesting. During these years, has anything changed concerning the way real estate transactions are being held? And if so, what?”

Ana Laura Monsivais: “The change has been abysmal! In the 90s, there was no internet, there was no Whatsapp, there was no Google Maps, there was no cyber or virtual advertising; pictures, videos of presentation. Finally… everything has changed, and improved, of course, and to make the transactions faster, more comfortable and more transparent.”

HalloCasa: “In the last five years how has the Mexican real estate market behaved, especially in the main cities compared to suburban areas?”

Ana Laura Monsivais: “The investment in constructions with domestic and foreign capital has been on the rise while in suburban areas it has been not as much.”

HalloCasa: “The rental market and the sales market: What is the highest preference of Mexicans?”

Ana Laura Monsivais: “Both, there is much movement in the Mexican capital, both for sale and rent and in both residential and commercial sectors.”

HalloCasa: “At present, what are those areas of opportunity that you have detected as ideals for foreign investment?”

Ana Laura Monsivais: “In many areas such as investment in shopping centers, tourism development, corporate buildings, investment in land for short and long term. In brief, there are a lot of opportunities for investors with large projects and significant financial benefits.”

HalloCasa: “Ana Laura, of those mentioned areas, which are the sectors mostly demanded by foreign investors?”

Ana Laura Monsivais: “I think that commercial projects, developments in the tourist industry, corporate buildings, marinas, hotels and in general, everything related to the commercial real estate. This is clearly the sector which is requested the most by foreign investment groups.”

HalloCasa: “What role does international foreign direct investment play in Mexico´s economy?

Ana Laura Monsivais: “With more than 77,000 transnational companies and 62 million jobs, foreign direct investment (FDI) plays a formidable role in today’s global economies and in Latin America. In Mexico, it is estimated that 20% of the country’s GDP is based on the construction industry. Therefore, we have bilateral agreements with most of the foreign countries and therefore legal processes for foreign investors are agile, simple and welcome!”

HalloCasa: “Ok, and how does the outlook for the Mexican economy look like, in general?”

Ana Laura Monsivais: “According to the reports of our Secretary of Finance, in 2017, GDP will grow between 1.3 and 2.3 percent, but it will return with more force in 2018, when that range will be between 2.0 and 3.0 percent. It is also estimated that next year inflation will return to the Bank of Mexico’s target and that daily oil production will exceed the threshold of two million barrels per day. The exchange rate with the US Dollar puts it at 19 Pesos per US Dollar this year and a little more for the next. So, we can see that in 2018 the construction industry will remain very active in both the middle and residential housing.”

HalloCasa: “Santa Fe, Guadalajara, Monterrey… please give us examples of big cities where the corporate offer has grown in the last year?”

Ana Laura Monsivais: “The growth, according to the survey carried out by the Mexican National Institute of Statistics and Geography, publishes that the 2016 corporate offer grew in the following Mexican states: CDMX, Estado de Mexico, Nuevo Leon, Tamaulipas, and Coahuila.”

HalloCasa: “What do you consider to be the most recurring reason for Mexicans on which they base their decision to purchase a property? Do they rather purchase to live or to rent it out?”

Ana Laura Monsivais: “Normally, the budget and the price points trigger the decision whether to buy and what kind of property to buy.”

HalloCasa: “Culturally, how do Mexicans perceive real estate investments? Having your own home is an inescapable aspect when it comes to housing in the Mexican society?”

Ana Laura Monsivais: “Today the consciousness of saving has been sown into the Mexican mindset. Therefore, the investment in real estate is very well received. To your second question I would say that yes, it is an unavoidable aspect to own housing for the Mexican culture.”

HalloCasa: “According to the Mexican Association of Real Estate Professionals (AMPI), the real estate sector currently represents 20% of the Gross Domestic Product (GDP). A reason for this share are the high growth areas of the country including large cities, squares and border areas. Which areas are we talking about, precisely?”

Ana Laura Monsivais: “As we mentioned, Mexican Ports, both the Pacific and Caribbean Coast, Baja California, most border cities with USA, Mexico State, Monterrey, Guadalajara, Santa Fe, Bahia de Banderas and of course, CDMX.”

HalloCasa: “If you had to make a comparison between the sales market and the income market in CDMX, what would be the outcome?”

Ana Laura Monsivais: “60% Sales, 40% Rentals.”

HalloCasa: “Mrs. Ana Laura: We know that your time is limited. We would like to thank you for this informative and in-depth interview. Would it be possible for interested readers to contact you if they have any follow-up questions? Thank you very much for the interview.”

Ana Laura Monsivais: “Yes of course. Investors can contact me via HalloCasa or contact me directly on mobile phone number 55.1345.0978 or email analauramex@yahoo.com. Thank you.”

HalloCasa: “Thank you so much for being with us.”

Ana Laura Monsivais: “Thank you very much.”


About HalloCasa:

HalloCasa, the marketplace for international real estate properties. HalloCasa’s mission is to build trust for vendors and investors with respect to cross-border real estate transactions.