The mortgage market accelerated in recent months in Mexico and access to housing increased. While the number of properties in poor condition or overcrowded fell by more than 543 thousand, indicated BBVA Mexico in its report "Mexico Real Estate Outlook."
BBVA highlighted the dynamism of the mortgage market, whose progress is slightly higher than 26% per year, according to figures as of June 2021. They also consider that the increase does not correspond solely to the statistical effect due to the inactivity of the second quarter of 2020.
The demand for mortgage loans grew in the middle and residential segments, although the social interest remains depressed. The 26.1% increase would be more associated with the fact that public institutes placed 11.8% more in this semester compared to the same period of the previous year, as well as a 38.9% growth by banks, the analysis indicated.
According to the study, the growth of the construction sector in the second quarter of 2021 is given by the combination of building results in 9.7%, civil works that slowed down with -1.2% and specialized works increased by 19.6%.
This advance is far from indicating a recovery despite the fact that employment in the sector can be considered to have already recovered, the analysis indicated.
The study pointed out that in all of 2021 the sector could grow up to 9% thanks to the dynamism of the building generated by foreign trade and associated industrial activity.
The report highlighted that during 2020, despite the great economic contraction of 8.2% of gross domestic product or GDP, housing did not depreciate and this appreciation continues this year.
According to the National Housing Commission (Conavi), the housing backwardness is the term used in Mexico to refer to overcrowded homes, or whose building materials are in deterioration, and fail to satisfy a minimum of well-being for their occupants .
"A review of the housing lag shows that during the biennium from 2018 to 2020, it went from 9.4 million homes to 8.9 million. The reduction of 543 thousand homes is mainly due to the use of higher quality materials, although it also reduced overcrowding at 16.8%, "explained BBVA.
The report shows that the favorable characteristics of bank mortgage loans have led to an increase in the demand for housing.
The report's results suggest that better credit conditions improved access to housing for all households at each income level and housing segment.
The study also indicates that credit conditions have increased the ability to purchase housing for all socio economic segments in the country.