In 2019, the Guadalajara Metropolitan Zone (ZMG) registered the greatest attraction of real estate investments in Mexico, positioning Jalisco as one of the states with the most sought-after areas to live in.
Trends in vertical and horizontal housing rental or purchase in the ZMG set the tone in the real estate sector. For Eduardo Sandoval, general director of Orange Home Inmobiliaria, in 2020, the trend continues to be, without a doubt, the development of vertical spaces.
“Vertical developments are experiencing the greatest boom in the Guadalajara Metropolitan Zone because they occupy very little land space and towers of 12, 20, 50 or more apartments can be built.”
He indicated that land is currently becoming the treasure of all developers due to the complexity of finding it inside the city, a characteristic that increases the added value of the project due to the consumer’s high demand for the area.
“The location is elementary. The issue of transportation is what people are trying to avoid. Mainly, what the client looks for in an apartment is to be inside the metropolis.”
Avenues such as Patria, Vallarta, Chapultepec and Providencia, as well as the Real zone and Estancia, among others that are close to corporate and commercial areas, attract more and more attention from investors and consumers.
“Clients do not look outside the metropolis; however, in the south of the city, in the López Mateos corridor, we can see that it will be the area with the greatest demand in the future.”
He explained that the profile of the client who demands this type of space is someone between 28 and 50 years old who is looking for comfort and being close to meeting places and workplaces.
“Small spaces such as a loft, studio or one- or two-bedroom unit are the type of properties most clients are looking for.”
Does this client profile buy or rent? When asked, Sandoval said that the majority seek to buy, to have that feeling of belonging that comes from family precedent; however, he indicated that eight out of ten do so through financing.
He mentioned that, on average, the current type of investment is in apartments of 807 square feet with a value of approximately 3.5 million pesos, at least in the Chapultepec area.
Regarding the form of purchase, he said it is 50 and 50. That is, five out of ten acquire a home with their purchasing power, while the other half does so through a mortgage, the majority, supported by a family member for collateral.
“In presales it is different, because there is more facility of payment through monthly, quarterly or annual payments. Besides that, the sale price is up to 20 percent lower.”
He explained that in leasing it is different and depends on the ability to pay, since planning monthly expenses against income allows them to set aside the amount of the rent, so the expenditure of 10, 15, or 20 thousand pesos or more varies according to the client.
Not Everything Is Vertical
With regard to horizontal housing, he explained that demand is also still very high within the Guadalajara Metropolitan Zone.
“The ZMG has a demand of ten to one, at least with us, as we receive ten calls requesting reports for a house that is within the periphery for every one that is on the outskirts.”
As an example, he said that a house in the Moderna or Americana neighborhood, which has a high cost, is more than 40 years old and will surely need an investment of more than one million pesos in remodeling, currently has more demand than a new house outside the city’s periphery.
“We come back to the same thing. The client prefers to leave that issue aside and opt for the comfort and practicality of living within the city.”
As for the profile, he indicated that they are people aged 45 to 70 whose purchasing power is much higher, and, although there are those who acquire a loan, there is the other market that can acquire properties of 10, 15 or 20 million pesos in cash.
However, he stressed that the lack of housing spaces within the ZMG means that the real estate sector remains dynamic both outside and inside the city, as there is a market for everyone.