There are more and more older adults in Mexico, so the real estate industry has gradually turned to this population segment to serve you; however, the potential is enormous to develop real estate according to the needs of people aged 50 and over who seek to have good quality at this stage of their lives.
According to data from the National Institute of Statistics and Geography (INEGI), in 2020, 15.1 million people aged 60 or over resided in Mexico, representing 12% of the total population, from 6% in 1990.
But for the Mexican Association of Retirement Assistance (AMAR), the real estate industry It must cover people over 50 years of age on this topic and, in addition, all foreigners who come to live their stage of retirement in Mexico, which is estimated to be about 1.3 million in the country.
“As of today, we need more than 20 or 30 communities in the country to serve this population, because people are aging fast. The retirement assistance industry is no longer focused only on the corrective issue, but also on the preventive issue,” said Javier Govi, president of AMAR.
For Govi, little by little the industry from its different areas begins to turn to see the older adultsthat is to say that more participation of developers, architects, investors and financiers, among others, is beginning to be noticed to cover this population segment with housing solutions.
Despite the growth of this interest, Govi stressed that this industry still needs to be developed in the country, since, for example, in the 16 years of AMAR in Mexico, the association, from its consulting area, has managed to land about 11 real estate projects with different grounded concepts for this population segment.
MARKET WITH POTENTIAL
The president of AMAR pointed out that there is a great area of opportunity in three main markets, which are the Shallowsthe states that cover the Sea of Cortez and the south-southeast of the country.
“We have those regions that are well studied. Mexico’s strategy should focus on those regions with the greatest chance of success,” Govi said, adding that usually those areas that already have a developed market are the ones that are doing best.
According to the president of AMAR, the market that must be covered with real estate solutions is all foreigners who come to Mexico to live their retirement stage, as well as people aged 50 and over from the middle and upper-middle class, which is like 30% of the adult population in the country.
“The upper middle class is headless. We seek to create innovative concepts that are accessible, that allow that sector, at least, to have the benefit of entering this real estate offer, that leads to an adequate quality and lifestyle, “said Govi.
Likewise, the president of AMAR highlighted the potential that Mexico has to receive foreign people who seek in the country to spend this stage of their life.
“Unfortunately, only certain activities of the National Institute for the Elderly benefit 1.3 million people. foreign retirees who live in our country and there is that bias, which has not clearly allowed all the older adults both domestic and foreign,” he declared.
MEXICO, OF THE FAVORITES
According to the magazine International Living, Mexico ranks third among destinations classified as The Best Places to Retire worldwide, due to conditions such as climate, cost of medical care, connectivity, among others.
“Cost of living is, of course, tied to lifestyle and habits. But, on average, a retired couple could live well in Mexico for around $2,000 a month. That covers housing, transportation, health care, utilities, food,” according to International Living.
In this context, Govi stressed that it is necessary to create innovative concepts that are attractive to the adult population that wants to have a good quality of life and that are different from the options on the market, such as nursing homes.
The last complex landed by AMAR is in Cuernavaca, Morelos, where, according to the president of said association, there is great interest in Adults residents of the Metropolitan Zone of the Valley of Mexico and that brings together two concepts, coliving and cohousingwhich makes it unique in its kind.
“There we are going to have nine villas with 41 units and it is a totally new business model in Mexico,” declared the president of AMAR, which, from its consulting division, is in charge of contacting investors, developers, promoters, architects, owners of land, among others, who are willing to enter this industry.
