Residential Real Estate Leases - Mexico

The projected revenue of the Residential Real Estate Leases market market in Mexico is expected to reach US$102.10bn by 2024.
House Leases dominate the market with a projected market volume of US$75.58bn in 2024.
Furthermore, the revenue is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 3.64%, leading to a market volume of US$122.10bn by 2029.
Mexico's residential real estate lease market is experiencing a surge in demand due to the country's growing urban population and a strong rental culture.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Mexico is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to this positive trajectory. Customer preferences in the Residential Real Estate Leases market in Mexico are driving its growth. With an increasing number of people seeking flexible living arrangements, the demand for rental properties has surged. This is particularly true among younger generations who prioritize mobility and freedom. Additionally, the desire for affordable housing options has also contributed to the rise in residential leases. Many individuals are unable or unwilling to commit to the financial obligations of homeownership, making renting a more attractive option. Several trends in the market are shaping the Residential Real Estate Leases industry in Mexico. One prominent trend is the emergence of co-living spaces. These shared living arrangements provide individuals with the opportunity to live in a community while enjoying the benefits of a private living space. Co-living spaces are gaining popularity among young professionals and students who value affordability and social connections. Another trend is the rise of short-term rentals, driven by the growth of platforms like Airbnb. This trend allows property owners to capitalize on the demand for temporary accommodation, particularly in tourist destinations. Local special circumstances also contribute to the development of the Residential Real Estate Leases market in Mexico. The country's growing population, urbanization, and increasing levels of migration have created a need for more housing options. Additionally, Mexico's strong tourism industry attracts a significant number of visitors each year, further driving the demand for rental properties. The government's efforts to promote affordable housing and improve access to credit have also played a role in fostering the growth of the market. Underlying macroeconomic factors are also influencing the Residential Real Estate Leases market in Mexico. The country's stable economic growth and low-interest rates have made it an attractive destination for real estate investments. Additionally, favorable demographic trends, such as a growing middle class and a young population, contribute to the demand for rental properties. Mexico's proximity to the United States, a major source of foreign investment, further enhances its appeal as a real estate market. In conclusion, the Residential Real Estate Leases market in Mexico is experiencing significant growth and development due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The increasing demand for flexible and affordable housing options, the emergence of co-living spaces and short-term rentals, and the country's population growth and urbanization all contribute to the positive trajectory of the market. Additionally, Mexico's stable economic growth, low-interest rates, and favorable demographic trends further enhance its attractiveness as a real estate market.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

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

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate Leases - Mexico

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts

Contact

Get in touch with us. We are happy to help.

Residential Real Estate Leases - Mexico

In-Scope

Out-Of-Scope

Related markets:

Residential Real Estate: market data & analysis

Financial

Access more Market Insights on Financial topics with our featured report

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts