Mexico City (Nallely Hernández) – The impact by coronavirus (Covid-19) will be reflected in the slowdown of real estate projects in the short term, pause in investments and even opportunities to purchase properties, specialists estimated.
Armando de la Fuente, executive director Northeast area of Newmark Kngiht Frank, said that since the impact of Covid-19 is global and the supply chain is interconnected, the consequences will come to Mexico translated into pauses to projects and greater availability of spaces.
Covid-19 is expected to stop real estate investment in Mexico. | Photo: Reforma
“The requirements that were in the ‘pipeline’ stopped drastically and companies are revaluing their business plan, as the variables have changed in the last 30 days,” said De la Fuente.
Sergio Mireles, CEO of Datoz, explained that the hotel and retail sectors will be the most affected in the first stage.
“We believe that there will be very short-term negative consequences, for example, the strategy of waiting and observing the panorama of users who were considering opening a plant or making a new investment,” said Mireles.
De la Fuente said that while the impact will be immediate, especially in the automotive and aerospace sectors, Mexico can take advantage to attract companies.
“The general impact in Mexico is similar to that of other countries, especially Latin America, but with the great advantage of being a neighbor of the United States.”
For Mireles, an effect that will benefit industrial properties is the injection of the US and the reactivation of works by the Mexican government.