Commercial Real Estate - Mexico | Statista Market Forecast

The Commercial Real Estate market market in Mexico is predicted to reach a value of US$1.26tn by 2024.
It is expected to exhibit an annual growth rate (CAGR 2024-2029) of 3.08%, leading to a market volume of US$1.47tn by 2029.
When compared globally, the United States is projected to generate the highest value in Real Estate, amounting to US$25.3tn in 2024.
The commercial real estate market in Mexico is experiencing significant growth due to increased foreign investment and a thriving tourism industry.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Mexico has been experiencing significant growth and development in recent years.

Customer preferences: One of the main customer preferences in the Commercial Real Estate market in Mexico is the demand for modern and high-quality office spaces. With the rise of technology and globalization, businesses are looking for office spaces that can accommodate their needs for connectivity and collaboration. Additionally, there is a growing demand for mixed-use developments that combine office spaces with retail and residential components. This allows businesses to have access to amenities and services within close proximity, making it more convenient for employees and clients.

Trends in the market: One of the key trends in the Commercial Real Estate market in Mexico is the increasing presence of multinational companies. Mexico has been attracting foreign investment due to its strategic location, favorable business environment, and skilled workforce. As a result, there is a growing demand for office spaces from these multinational companies, which has led to the development of new commercial real estate projects. Another trend in the market is the focus on sustainability and energy efficiency. With growing concerns about climate change and the need to reduce carbon emissions, developers in Mexico are incorporating sustainable practices into their commercial real estate projects. This includes the use of renewable energy sources, energy-efficient building materials, and green building certifications. This trend is driven by both customer demand for environmentally-friendly spaces and government regulations promoting sustainability.

Local special circumstances: Mexico's proximity to the United States and its participation in international trade agreements, such as the North American Free Trade Agreement (NAFTA), have contributed to the growth of the Commercial Real Estate market. The country's strong trade relationships and its position as a manufacturing hub have attracted foreign companies looking to establish a presence in Mexico. This has created a demand for industrial and logistics spaces, particularly in border cities and major manufacturing hubs.

Underlying macroeconomic factors: The growth of the Commercial Real Estate market in Mexico can also be attributed to the country's stable macroeconomic environment. Mexico has a strong and growing economy, supported by factors such as low inflation, low interest rates, and a stable currency. These factors have created a favorable investment climate, attracting both domestic and foreign investors to the Commercial Real Estate market. In conclusion, the Commercial Real Estate market in Mexico is experiencing significant growth and development due to customer preferences for modern and high-quality office spaces, the presence of multinational companies, the focus on sustainability and energy efficiency, Mexico's trade relationships and participation in international trade agreements, and the country's stable macroeconomic environment.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.