In various Mexican cities, such as Guadalajara and Mexico City, as well as in beach destinations such as Puerto Vallarta and Cancun, the housing market is more oriented toward the rental of homes, according to Leonardo González, real estate analyst of the firm Propiedades.com, who says it is a housing solution that will continue to gain strength.
“Rentals are more flexible contracts. Exit costs are lower, since rescinding a contract or not renewing it is simpler than liquidating a mortgage in advance.”
In an analysis conducted by Propiedades.com itself, in Guadalajara monthly rent for a family home is as high as $16,700 pesos, while in Mexico City there are properties that cost $38,000 pesos per month. Meanwhile, in beach destinations, rent on a house is around $17,759 pesos.
For González, another factor that influences the decision to rent a property instead of buying is the weak job market, “which implies change of employment, without needing to buy for each new job.”
He notes that the consolidation of real estate innovations such as roomies, collaborative tourism options and transition to ownership through innovative mortgage mechanisms will deepen.
“In particular, rentals are more flexible contracts. Exit costs are lower, since rescinding a contract or not renewing it is simpler than liquidating a mortgage in advance.” —Leonardo González, real estate analyst at Properties.com.