Lease price decreases after recent earthquakes

After the devastating earthquakes that hit Mexico, an 8.2-magnitude quake on Thursday, September 7 followed by a 7.1-magnitude quake on Tuesday, September 19, property prices and lease prices decreased in certain areas
Mexico City earthquake aftermath in Roma quarter – Photo: Alejandra Leyva/EL UNIVERSAL
07/10/2017
16:12
Newsroom
Mexico City
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After the devastating earthquakes that hit Mexico, an 8.2-magnitude quake on Thursday, September 7 followed by a 7.1-magnitude quake on Tuesday, September 19, property prices and lease prices decreased in certain areas, according to an analysis of the real estate portal Propiedades.com.

Property and lease prices were verified in Condesa, Roma, Del Valle, Narvarte and Portales quarters in order to know the impact of the earthquakes in the real estate sector.

The analysis studied the market behavior on three dates September 7, 19 and 10 days later on the 29.

Regarding the lease price, the largest decrease was in Del Valle with 4.62% price decrease, followed by Portales with 0.77% decrease.

On the opposite side, Narvarte quarter had a 1.82% increase.

Leonardo González, an analyst for Propiedades.com, estimated that property prices are going to overcome the earthquake effect in three stages.

Real estate depreciation due to collapse or structural failure will be the first stage.

There will be a second stage by the end of the fourth quarter of 2017, in which prices will show a new level and trend.

The third stage will depend on how the habitability of the area is modified, with new arrivals, floating population, new investments and the impact of government measures.

Regarding property sale prices, they increased 1.18% in Roma quarter followed by Del Valle with 0.22% increase.

While Condesa with 0.30% decrease followed by Portales with 0.03% and Narvarte with 0.01% decrease.

According to the analysis, there will be a drop in prices in the affected areas, yet it will not be as abrupt as it was expected.

sg

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