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HomeFINANCEThe Housing Industry in Mexico grows thanks to SMEs

The Housing Industry in Mexico grows thanks to SMEs

  • 70% of jobs in the sector are generated by micro and small economic units.

  • 42% of real estate services activity is concentrated in micro-enterprises.

  • 2.4 trillion pesos, the GDP of Real Estate Services and Rental of Movable and Intangible Assets as of 4T2020.

Micro and small companies have established themselves as the engine that drives the real estate services sector. And it is that, according to data from the study “Knowing the Housing Industry”, almost 75% of the productive activity in the segment is concentrated in small and micro economic units.

The document, prepared by the National Institute of Statistics and Geography (Inegi), in collaboration with the National Chamber of the Housing Development and Promotion Industry (Canadevi), reveals that micro and small companies are also the ones that generate the most employment. Of the total number of jobs in the real estate services sector, 69.7% are given by these economic units.

In segregated data, the micro units lead both the generation of jobs and the production of services. On the one hand, microenterprises account for 42.5% of the sector’s activity, and generate 46.6% of jobs. It should be noted that small companies account for 32.1% of production in the sector and generate 23.1% of jobs.

In this regard, medium-sized companies represent 18.2% of the activity of real estate services in Mexico and 15.2% of the jobs. In this sense, large companies concentrate 7.2% of the activity and generate 15.1% of jobs.

It should be noted that the Inegi classification identifies microenterprises as those that have a maximum of 10 people; and to small economic units such as those with staff from 11 to 50 people.

Real estate services, key axis of the Housing Industry in Mexico

It is important to point out that the study “Knowing Housing in Mexico” also emphasizes the importance of real estate services for the housing industry.

According to the data released, the housing industry in Mexico represents 6% of the National Gross Domestic Product (GDP), which is equivalent to a value of 1.3 billion pesos. In this sense, Real Estate Services represent 26.7% of the generation of wealth in the sector.

“The two most important activities of the housing industry in Mexico are Construction and Real Estate Services, which add 95.4% of the total of said industry”, indicates the document.

In this sense, the document details that Real Estate Services generate income in 237 economic activities. Of this total, 102 belong to the secondary sector and 135 to Commerce and Services.

It is important to note that according to the Ministry of Economy (SE), in 2019 there was a record of 144,468 economic units that participated in the Real Estate Services and Rental of Movable and Intangible Assets sector. In this sense, it reports that of the total population employed in this industry, 23% are women and 77% are men.

In addition to the above, according to the agency, the Real Estate Services and Rental of Movable and Intangible Assets sector, as a tertiary economic activity, reported a GDP of 2.4 billion pesos in the fourth quarter of 2020.

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