Market Size of Latin America Condominiums and Apartments Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2020 - 2022 |
CAGR | 5.00 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Latin America Condominiums & Apartments Market Analysis
The Latin American condominiums and apartments market is anticipated to register a CAGR of over 5% during the forecast period. The market is driven by the demand for rental apartments in many cities, preceded by luxurious condos in some of the most expensive cities. The market is driven by growing investments.
- Destination markets in Mexico are heating up, particularly as remote workers seek a year-round, resort-style living due to flexible, remote work policies. Buyers continue to snap up vacation homes that they can use more frequently and then rent out for income the rest of the year. The global rental market has remained at an all-time high for the past two years as demand continues to outpace supply. Single-family home sales increased by 30%, with the median price increasing by 95%. Condos were the most popular commodity, with transactions increasing by 93%, followed by single-family homes and undeveloped land.
- Polanco, known as the "Beverly Hills of Mexico," is the cultural center of Mexico City, the country's capital, and is home to some of Latin America's most expensive properties. In this region, condos in low-rise buildings are the most common housing type. They are typically designed in the Mexican/international contemporary style. Some of the most prestigious residential projects are boutique-style buildings with 10 or fewer condos and five stories or less. They typically range from 1,500 to 4,000 square feet, which is relatively large compared to condos in other large cities. Many of them have private helicopter landing pads on their rooftops, with the newer condos including a gym, swimming pool, playground, and a shared common area, among other things.
- Playa del Carmen, located on the beautiful Riviera Maya about an hour from Cancun, is becoming increasingly popular among the digital nomad crowd as a fun little beach city. This region is more expensive than Mexico City and, along with Cancun and Tulum, ranks second in Latin America only to Punta del Este in Uruguay. However, unlike other Latin American cities, prices in Mexico City are much more closely linked to the North American market, as this is the primary target market for the Mexican industrialists, who are tied to the American economy.
- The rent of apartments in Mexico City is significantly lower than in many other countries. Tourist attractions or major economic centers are located in cities with the most expensive housing. As a result, rent is relatively more expensive in Los Cabos, Monterrey, Guadalajara, and Cancun. On the other hand, Tlaxcala, Zacatecas, and Tepic are several cities with the lowest prices.
Latin America Condominiums & Apartments Industry Segmentation
An apartment is a private residence in a building or house divided into several separate dwellings. A condominium (also known as a "condo") is a large property complex made up of individual units, each of which is owned separately. Typically, ownership includes a nonexclusive interest in certain "community property" managed by the condominium management. The report includes a complete background analysis of the Latin American condominiums and apartments market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact.
The Latin American condominiums and apartments market is segmented by country (Mexico, Brazil, Colombia, and Rest of Latin America). The report offers market size and forecasts for the Latin America Condominiums and Apartments market in value (USD billion) for all the above segments.
By Country | |
Mexico | |
Brazil | |
Colombia | |
Rest of Latin America |
Latin America Condominiums and Apartments Market Size Summary
The Latin American condominiums and apartments market is experiencing significant growth, driven by increasing demand for rental apartments and luxurious condos, particularly in high-demand urban areas. The market is characterized by a robust interest from remote workers seeking resort-style living in destinations like Mexico, where cities such as Playa del Carmen and Polanco are becoming popular. The region's real estate landscape is marked by a high demand for vacation homes that can be rented out, contributing to the sustained high levels of activity in the rental market. The market is also seeing a surge in investments, with major players like Tishman Speyer, Hines Group, JLL, CBRE, and Greystar Real Estate Partners actively participating. These companies, along with local startups, are enhancing the supply of real estate, fostering a competitive environment.
In addition to Mexico, other Latin American countries are witnessing a construction boom to address housing shortages. Colombia and Brazil are at the forefront, with government policies and private sector initiatives aimed at boosting housing supply. The market is fragmented, with numerous local and regional players alongside global firms, creating a dynamic and competitive landscape. The demand for luxury apartments is particularly strong in Brazil's major cities, while Mexico's housing market is closely tied to North American economic trends. The ongoing development and investment in the region's real estate sector are expected to continue driving growth, with collaborations and mergers, such as the one between Casai and Nomah, further expanding market reach and capabilities.
Latin America Condominiums and Apartments Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Current Market Scenario
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1.2 Value Chain/Supply Chain Analysis
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1.3 Residential Real Estate Buying Trends - Socioeconomic and Demographic Insights
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1.4 Government Initiatives and Regulatory Aspects Pertaining to the Residential Real Estate Sector
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1.5 Insights into the Size of Real Estate Lending and Loan-to-value Trends
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1.6 Insights into the Interest Rates for the General Economy and Real Estate Lending
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1.7 Insights into the Rental Yields in the Residential Real Estate Sector
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1.8 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Country
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2.1.1 Mexico
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2.1.2 Brazil
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2.1.3 Colombia
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2.1.4 Rest of Latin America
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Latin America Condominiums and Apartments Market Size FAQs
What is the current Latin America Condominiums and Apartments Market size?
The Latin America Condominiums and Apartments Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in Latin America Condominiums and Apartments Market?
Tishman Speyer, Hines Group, JLL, CBRE and Greystar Real Estate Partners are the major companies operating in the Latin America Condominiums and Apartments Market.