Nearshoring will unleash $32 billion in investment in Mexico by 2025.

Mexico is on the verge of an unprecedented real estate transformation. Driven by nearshoring, the sector is poised to receive an estimated $32 billion in investment by 2025, a 15% annual growth that will redefine the country's urban and industrial landscape.

The relocation of supply chains, known as nearshoring, is ceasing to be an abstract concept and becoming a powerful economic reality in Mexico. Projections for 2025 indicate that this phenomenon will translate into a monumental capital injection: 652 billion pesos (approximately $32 billion) allocated to the real estate sector, representing an annual growth of 15%.

This wave of investment will not remain on the drawing board. It will materialize in a massive infrastructure expansion throughout the country. The distribution of this investment is projected as follows:

• Industrial Warehouses: 5.5 million square meters, the star segment of nearshoring, to house new factories and logistics centers.
• Residential Housing: 223,666 new units to meet the demand for new jobs.
• Shopping Centers: 300,000 square meters to serve new and growing urban areas.
• Hospitality: 10,000 new hotel rooms, driven by business tourism.
• Vacation Homes: 16,232 additional units.

A key indicator of the health and dynamism of this boom are Real Estate Investment Trusts (FIBRAs). These instruments have allowed investors to participate in the real estate market on a large scale. Sector giant Fibra Uno (FUNO) reported annual revenue growth of 9.22% in 2024 and a total portfolio occupancy rate of 95.6%, levels not seen since before the pandemic.

"Real estate in a good location can increase its value… In FUNO's case, 75% of its real estate is located in the metropolitan area of ​​Mexico City, with a location that has allowed its value to increase," said Jorge Pigeon, VP of Investor Relations at FUNO.

However, this boom is not without social challenges. Massive investment is concentrated in the industrial and commercial sectors, as well as in mid- and high-end housing to meet the demand for new executive and technical positions. This creates immense pressure on the affordable housing market. If adequate public policies are not implemented, there is a risk that the nearshoring boom will end up expelling lower-income workers from the cities where they work, a phenomenon known as gentrification. The key question is: growth for whom?

Along with this growth, a shift in buyer preferences is being observed. Young families, in particular, are prioritizing location and amenities over square footage. They seek to live close to their jobs, parks, schools, and leisure centers, which is driving the development of mixed-use and high-density projects in established urban areas.

The year 2025 is shaping up to be a turning point for the Mexican real estate sector. Nearshoring is the driving force behind a transformation that will not only generate millions of jobs and significant economic growth, but will also pose crucial challenges in terms of urban development and social equity.