One of the strategies of real estate to meet the demand for homes in land-scarce areas is the development of vertical housingwhich allows the densification of cities through residential towers.
This trend has marked the main capitals of Latin America, such as Santiago, Chile; Bogota Colombia; Lima, Peru and Mexico City, Mexico. These four cities together reported 147,000 housing units available for sale at the end of the third quarter of 2022, according to the Residential Market Overview study by the real estate consulting firm Tinsa.
According to the figures of the analysis, this number meant a reduction of -8.3%, compared to the availability registered in the same period of 2021.
Of the total inventory registered at the end of the third quarter of the year, 89% corresponds to construction projects. vertical housinga considerable difference in contrast to the offer of products in horizontal format, which was 11 percent.
“The metropolitan area of Mexico City registers the largest stock of horizontal housing among the analyzed capitals (35%), since the urban sprawl has extended to the State of Mexico, and even municipalities in the state of Hidalgo, where this kind of units is still being developed, mainly oriented towards segments of social interest”. can be read in the report.
Sales grew 28.2%
Regarding sales, from the second to the third quarter of 2022, 34,534 units were absorbed in the four Latin cities, which represents a growth of 28.2 percent.
It is worth noting that, in the metropolitan area of the Mexican capital, the medium, medium-low and vis segments (the lowest segment) concentrated 56% of quarterly sales.
Regarding the progress of work, the Metropolitan Area of Mexico City (ZMCDMX) is the capital with the most projects in the immediate delivery phase (34%), followed by Lima with 19 percent. In Bogotá, 54% of the developments are in preliminary stages, while in Santiago, 40% of the developments are under construction.
“In the case of the ZMCDMX, almost a quarter of the developments are aimed at the middle segments, which has been boosted significantly in the last year.”
Mexico City, the most expensive capital
According to Tinsa, the average sales ticket for a horizontal housing in the four most important capitals of Latin America it is 116,994 dollars, with a value per square meter (m2) of 1,095 and a living area of 99 square meters.
In the segment of Luxury houses, the highest value is reported in the capital of Mexico, with 3,605 dollars per m2, and the most accessible is in Peru (1,585 per m2).
Refering to vertical housingthe average sales price is $153,384, with a value per square meter of $2,040 and a living area of 69 m2.
Once again, the Mexican city offers the highest prices in the region. Apartment projects in the Luxury segment registered an average price of $756,523.