Market Trends of Mexico Home Equity Lending Industry
Financial And Socioeconomic Factors Favouring The Market
The development of residential infrastructure is aided by the growing population, the growing need for decent housing and infrastructure, and the tendency toward nuclear families. The factors that drive the Mexico home equity lending market include rising home prices, popular home innovations, and improvements, tax deductions for interest payments, lower interest payments when compared to other borrowing methods, the availability of lump sum cash upfront payments, and fixed monthly payments.
Last year North Area of Mexico was existing with the largest number of houses sold followed by the western and central areas with the State of Mexico and Mexico City having the largest number of economic units in the real estate sector existing at 7,000 and 6,000 in number signifying a large existing opportunity for Home equity lending in the region.
Rising Contribution Of Residential Real Estate In The Economy
Mexico City exists as the most expensive city for buying a home with the average price of real estate in the nation's capital city being about three million Mexican pesos or roughly double the national average. With a contribution to the GDP of over 6%, the housing sector is one of Mexico's most essential and steady markets. With only 15% of homes being rented, the market is mainly an owner's market, with approximately 69 % of properties in the nation fully paid off by their owners.
The average price of Housing in Mexico had observed a significant rise over the years rising to USD 90,000 during the last year with a further increase observed. This price increase is leading households to borrow a significant sum for their home's construction, renovation, and other works.
