The Challenge of Valuing Way of life in Housing

The present city mannequin is present process a rare transformation, pushed by the crucial want to enhance the standard of life for its inhabitants. In many circumstances, giant cities have turn into chaotic locations the place assembly primary wants — work, meals, and leisure — turns into an nearly not possible process. The pattern towards vertical and compact housing in these city hubs is already a actuality, serving because the predominant response to the calls for of latest generations who search to fulfill these wants with the least attainable effort.

However, for these of us devoted to valuation, this shift poses a elementary problem: How can we seize the worth of an asset the place effectivity and environment carry extra weight than sq. footage, with out deviating from the methodological rigor required by the market?

Traditional vs. 2026 Reality

Traditional valuation methodologies have been constructed on the evaluation of a normal: location and sq. footage, the place the prevailing actuality was “the more meters, the higher the price.” But in 2026, the market dictates {that a} 50 m2 condominium, designed with spatial intelligence and positioned inside a service ecosystem, can have increased liquidity and worth than a bigger conventional dwelling, even when the latter is well-located simply a few blocks away.

The problem in these circumstances lies in detecting and capturing that consumption pattern. We should keep away from the widespread error of falling again on conventional comparability fashions if we’re unable to watch the differentiators of at this time’s shopper.

Innovating Within a Regulated Framework

As valuation models, we function in a regulated market with very particular pointers on “how to do” and “what not to do.” These primary and crucial guidelines, dictated by the SHF are elementary to offering certainty and stability to the Mexican monetary system. Therefore, our job as professional appraisers is to not query the laws, however to be rigorous of their utility whereas remaining ingenious when capturing these new inflationary worth parts.

The true success of the fashionable appraiser doesn’t lie in inventing new formulation, however in designing new comparable adjustment fashions (standardization) which can be supported, justified, and able to capturing new consumption habits.

Until now, adjustment elements have targeted on traditional variables: age, state of conservation, floor space, and placement. But at this time, for an appraisal to replicate market actuality, we should have the ability to seize and quantify new worth determinants. Factors similar to design effectivity, the combination of productive facilities (coworking, built-in companies, or co-living fashions), and efficient connectivity (proximity to transit, existence of motorcycle lanes, amongst others) should be built-in with technical precision into our market sampling.

The Adjustment Challenge: From Physical to Functional

The key query we ask ourselves at Tasvalúo is: How can we incorporate these new worth determinants into the at present established mannequin?

If the market is prepared to pay a premium for compact housing because of time financial savings and entry to experiences, the appraiser should replicate that desire of their examine. This requires a a lot deeper evaluation of our samples and consumption habits. We should choose comparables that share not solely a geographic zone but in addition this “functional DNA.”

Expertise in our self-discipline consists of growing strong technical standards that permit for the adjustment of market values primarily based on effectivity elements. For instance, the presence of shared companies or hyper-connectivity can now not be mere feedback inside the appraisal observations; they should be computable variables integrated into the adjustment desk with correct justification, making certain the ultimate worth within the report is a devoted reflection of the closing value in at this time’s market.

The Evolution of Housing: Hard Facts (2024–2025)

The desire for vertical housing is now not only a pattern however a nationwide actuality. According to current experiences from main consultancies like 4S Real Estate, knowledge from the Federal Mortgage Society (SHF), and Tasvalúo’s personal databases, we observe the next:

• Vertical Dominance: Currently, Mexico City (CDMX), Guadalajara, and Monterrey account for roughly 60% of the nationwide vertical housing stock.
• Shrinking Spaces: The common dimension of latest models has dropped drastically. In high-appreciation zones of Guadalajara and CDMX, the common floor space has fallen from 106 m2 to 71 m2 (and continues to say no) during the last 5 years, whilst the value per m2 continues to rise.
• Absorption Speed: In cities like Guadalajara, vertical stock tripled between 2019 and 2024.
• New Players: The pattern reveals that mid-sized cities similar to Queretaro, Merida, Puebla, and Tijuana are replicating this mannequin, transferring away from in depth horizontal growth in favor of mixed-use tasks.

This leads us to ask: What is behind this pattern? Why fewer sq. meters?

Millennials (who represented 40% of dwelling purchases in 2023) and Gen Z will not be shopping for sq. footage, they’re shopping for time and entry.

While some might surprise if it is a real desire or an adaptation pressured by rising costs, at Tasvalúo, we imagine it’s a mixture of each, pushed primarily by 4 key elements:

1. Time because the Ultimate Asset: Today, free time is probably the most helpful commodity. Young individuals want a 50 m2 condominium the place they’ll stroll or bike to work, the fitness center, or a espresso store, moderately than a 120 m2 home on the outskirts (for instance, Zumpango in Edomex or García in NL) that requires two to 4 hours of each day commuting.
2. The Building as an Extension of the Home: This includes the inclusion of shared facilities. The mindset is: “Why do I need a huge living room if I can meet my friends on the roof garden? Why an office if the building has a coworking space?” The condominium turns into a sanctuary for relaxation, whereas the constructing and its fast environment turn into the areas for socializing.
3. Demographic Shifts: The evolution of the normal Mexican household is taking part in a serious position. There is a constant improve in single-person households and DINKs (Double Income, No Kids).
4. The Cost Factor: Finally, the financial actuality can’t be ignored. For most younger individuals, accessing a 100 m2 dwelling in prime areas is financially not possible. Living in neighborhoods like Roma (CDMX) or Americana (GDL) is just mathematically possible by lowering the sq. footage. It is an easy transaction: standing and placement in alternate for house.

Certainty in Times of Change

The future {of professional} valuation in Mexico is dependent upon our means to evolve alongside market wants. It just isn’t about abandoning technical rigor, however about enriching it with progressive parts and strategies that stay respectful of methodology and standards.

By refining our adjustment fashions and integrating these new determinants into our sampling, we fulfill our most necessary mission: offering certainty and safety in decision-making. Certainty for the client investing their heritage, ensures for the banks granting credit score, and worth seize for builders betting on denser, extra environment friendly cities.

At Tasvalúo, we’re satisfied that the worth of the long run just isn’t measured solely in sq. meters, however within the capability of areas to reinforce the lives of those that inhabit them. Our dedication is to translate that social actuality into exact and dependable monetary knowledge.