IEI Avalúos, specialized consultants in property, business, and intangible valuation, predicts that 2023 will be a year of growth for the real estate sector, especially due to the generation of housing, commercial, and business projects in high-demand areas, within a context where last-mile industrial growth continues to develop.

One of the main challenges to drive this growth will be to create products that meet the needs arising from the COVID-19 pandemic, as well as the demands of the most important population segments for the sector (millennials, Generation X, and baby boomers).

To achieve economic growth, stakeholders in the real estate sector will need to construct homes with open and workspace areas, as well as focus on building office spaces that are conducive to both in-person and remote work (home office).

According to SiiLA, in the past two years, the format of furnished offices (with basic facilities) and "Plug and Play" offices (with furniture) has increased in Mexico City. This is a result of the real estate market's response to vacant spaces caused by the pandemic.

After a challenging year like 2022, where the economic landscape was marked by a recession exacerbated by the COVID-19 pandemic, IEI Avalúos indicates that the overall challenge for the real estate sector will be to address inflation (which peaked at 8.7% last year) and potential increases in interest rates, which tend to create contractions in consumption.

Regarding the real estate industry in Mexico City, IEI Avalúos points out that at the beginning of 2023, "there will be insufficient supply of affordable, economical, and middle-income housing, which presents an opportunity to develop housing priced up to two million pesos" or to innovate with products or lines that meet this need at suitable prices for these socioeconomic sectors.

Regarding residential and premium residential properties in the capital, the specialized property valuation consultant states that from 2023 onwards, "projects with spaces for work, home office, or open recreational areas will dictate the trends." However, the quality of the project or offered product is crucial for potential growth.

As for office spaces, IEI Avalúos anticipates an unclear outlook due to two main reasons. Firstly, companies have reduced their physical office spaces and expanded remote work options (or home office) due to the pandemic. Secondly, there is the growth of mixed-use projects prioritizing spaces with amenities and suitable for coworking.

On the other hand, the industrial real estate sector in Mexico City will experience a similar growth rate as in 2022, especially in peripheral areas of the capital. This is because the industry in Mexico continues to grow and occupy properties, particularly in the last-mile context.

Between 2021 and 2022, almost 1.7 million square meters were added to the inventory, while the demand for these spaces increased and exceeded the market's supply. If this trend continues in 2023, we will witness a further reduction in the availability rate and even an increase in rental prices, according to data from SiiLA.

IEI Avalúos will increase its revenue in 2023.

This year holds positive prospects for the specialized company in property, business, and intangible valuation, as all its business lines have opportunities for economic growth.

The Property Valuation line will be strengthened by four main factors: a) the potential increase in property sales (due to the loss of purchasing power in Mexico); b) the recovery of the industrial and logistics sectors, which require industrial parks and spaces in transitional zones or on the outskirts of cities; c) the need for new valuation niches, such as "senior living" properties; and d) the slowdown in the commercial and office sectors, which will require new incentives and strategies to strengthen asset sales.

IEI Avalúos' Business Valuation line also has good growth prospects in 2023, mainly due to specialized valuation services that will be available to entrepreneurs and small businesses, the consolidation efforts in serving SMEs, as well as the firm's expertise in financial valuations (NIF's and IFRS or NIIF's) and complementary services (fixed assets, properties, and machinery) for large companies.

Furthermore, throughout this year, the Intangible Valuation line will be expanded, and the Machinery and Equipment Valuation line will kick off with highly experienced personnel in the sector.

SiiLA is the leading real estate company based in the United States, providing a set of cloud-based solutions that offer information, analysis, and intelligence for the commercial real estate market in Latin America, with headquarters in Brazil, Colombia, and Mexico.