The demand for loans to access housing and with it the recovery of the mortgage market will be subject to the creation of private formal jobs, with a better purchasing power, which generate certainty among the population, estimated BBVA Research in its last balance of the year on the real estate sector in Mexico.

And it is that derived from the health contingency caused by COVID-19 in the country, said market has registered a 15 percent drop in the placement of credits.

Only the commercial banks that serve this segment showed a contraction of 19.4 percent.

Although the market was already showing a depression during 2019, it was until the health contingency worsened that it showed a much more adverse effect on attracting potential mortgage clients.

This is due, to a greater extent, to the loss of just over a million jobs registered from March to June of this year as a result of the coronavirus pandemic.

According to BBVA Research, it could take 15 months for a positive rate of job creation to be reached again, but more than 40 months to regain the level of employment prior to the economic crisis.

Due to this factor, mortgage loan placement could contract up to 28 percent in real terms this year.

"Recovery will depend largely on formal employment, given that on the financing side, conditions have been favorable. Even the slowdown in house prices could constitute an incentive to acquire a new loan or seek a restructuring with a bank that offer a competitive rate, which will increase the supply of the liability payment figure, "says BBVA Research.