Investments: Fibras and the rebirth of nearshoring in Mexico

Real estate fibers, listed in the Mexican stock market, have historically been among the instruments that have provided the best returns to investors. Now with the nearshoringare even more promising.

Real Estate Investment Trusts (fibras) in Mexico have been a solid option for investors, offering attractive returns through the acquisition and rental of real estate.

The expected decline in interest rates by the U.S. Federal Reserve could further increase the attractiveness of these instruments, aligning them with the benefits also expected by Real Estate Investment Trusts (REITs) in the global context.

Although the fiber index on the Mexican Stock Exchange has registered a 12.5% drop so far this year, investors continue to receive profits, highlighting the resilience and strength of this type of investment.

The phenomenon of nearshoringThe relocation of factories from Asia to Mexico in response to the U.S.-China trade war has been a key driver for the industrial fiber sector. Companies such as KIA, Honda and Toyota have strengthened their presence in Mexico, increasing demand for industrial space.

Industrial fibers, with occupancies of almost 100% and rental growth, stand out as an opportunity for investors, reflecting the robustness of the industrial real estate market in the country.

This sector shows significant potential to continue to attract investment, thanks to continued demand from large logistics and e-commerce companies, such as DHL, FedEx, Mercado Libre and Amazon, which have successfully weathered the economic difficulties during the pandemic.

However, the fiber market is not without its weaknesses and challenges. Political uncertainty in Mexico, especially surrounding constitutional reforms and overrepresentation in Congress, poses a threat to the sector's sustained growth.

Investments in industrial parks made in the last three years are just beginning to consolidate, and there is concern that the current uncertainty could affect the pace of expansion towards 2026 or 2027.

Investors' perception of risk may be a determining factor in the future, as the political and economic environment directly influences confidence in making long-term investments.

The hotel sector, another essential component of the fiber market, has also shown good fundamentals, benefiting from growth in infrastructure and logistics. As investments in these sectors continue, hotels in strategic areas, close to industrial hubs, could experience sustained growth. This development, however, is highly dependent on economic stability and continued investment in infrastructure, which reinforces the need for a favorable policy environment.

The global REIT market continues to grow, with more than 940 listings and a value in excess of US$2 trillion, highlighting the strength of the real estate sector worldwide. In Mexico, the 16 listed fibers, with more than 2,000 properties covering 34 million square meters, represent a relatively small segment with high expansion potential. This potential can be a great opportunity for investors looking to diversify their portfolio in a low interest rate environment, taking advantage of the advantages of the nearshoring and growth in key sectors such as the industrial and hotel sectors.

However, threats to this growth, such as political and economic instability, could slow progress. The key to the future of Mexico's fiber market will lie in how these threats are managed and the country's ability to maintain an environment conducive to long-term investment. While the sector shows significant strength and opportunities, the evolution of the political and economic landscape will be critical to its continued development and success.

Collaboration: Editorial Auge.