Market Size of Commercial Real Estate Industry In Mexico
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 53.60 Billion |
| Market Size (2029) | USD 75.99 Billion |
| CAGR (2024 - 2029) | 7.23 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Mexico Commercial Real Estate Market Analysis
The Commercial Real Estate Market In Mexico Market size in terms of transaction value is expected to grow from USD 53.60 billion in 2024 to USD 75.99 billion by 2029, at a CAGR of 7.23% during the forecast period (2024-2029).
- Investors overcame pandemic limitations, resulting in the year's busiest start ever for commercial real estate. According to data from JLL, a top global provider of real estate and investment management services, investment in the first three months of 2022 hit its highest first-quarter level on record, totaling USD 292 billion. This growth was primarily due to the recovery of industries hit by the COVID-19 pandemic. Moreover, the quarterly investment figures in the development of offices, hotels, and retail all increased year over year.
- Due to its safety, culture, tourist attractions, and standard of living, Yucatan is one of the most sought-after places to live in Mexico. The industrial sector has also seen an exponential rise in public and private investment, which has boosted trade, services, housing, and tourism. The exceptional geographic setting provides a desirable balance between the city and the beach. Since more than 80% of the country's real estate is concentrated in just 15 states, the peninsular entity is currently one of those states. Numerous corporate, land, residential, commercial, and industrial developments are being done in this area to capitalize on the Yucatan real estate boom.
- Mexico City district is witnessing high real estate investment primarily due to multiple industries in this area. Similarly, Mérida is ranked sixth overall and the most competitive city in the southeast by the Mexican Institute of Competitiveness (IMCO). The market, driven by the increase in tourists and huge investments in industrial real estate, creates opportunities for many cities to flourish and contribute to the country's economy.
- The real estate investment mood has improved, but there is still cause for caution. The market is experiencing instability due to geopolitics, inflation, and rising interest rates. The real estate industry faces many challenges, including shifting monetary policy, labor shortages, trade and transportation impediments, and demand pressures from businesses wishing to expand or restart operations.
