The capital city authorities are studying various models to implement rental housing schemes that allow addressing the issue of the high existing demand

One mechanism could be the launch of an Investment Trust (FIBRA) for rental housing, designed to develop and manage this type of asset.

Pablo Benlliure, head of the Mexico City Institute for Democratic and Prospective Planning, pointed out that to meet the annual demand for housing in the City, 50,000 homes would have to be developed.

The properties that could make up this offer would be the result of processes of regeneration, reconversion, and in this mix, the implementation of social income housing projects, and should be analyzed with a metropolitan approach.

In addition to generating the conditions for the development of new housing, strategies must be launched to serve the existing housing and take advantage of the space already built in the capital.

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The official commented that the authorities included an income variable for the projects that are developed under the Urban Regeneration and Inclusive Housing Program.

“We put the income variable in this program and we put a different variable; a variable where instead of making 30% of the homes and selling them to recover, the developer can donate a percentage of homes to the government that ranges from 15% or whatever he gives financially; and the government through Servimet could manage that park.

In a project located in Santa María la Redonda, the developer participating under the Urban Regeneration Program will donate part of the homes to the government.

Models of participation between the government and the private initiative could also be included, in which the government contributes the land and it is given in concession to private parties to develop rental housing.

“We can do it through Servimet. We think that Invi and Servimet are going to become the two large housing production agencies. One much more oriented to the social production of housing and another more oriented to the production with private investors.

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Therefore, the authorities must focus on achieving optimal regulations that allow ordering the capital. On the other hand, the price of housing has maintained a sustained growth in Mexico City. And, in just the last two decades, the weighted average cost has increased by almost 1000%. In this time, it went from 500 thousand pesos in 2000 to 5 million 400 thousand pesos in 2020.

The official indicated that the authorities, through the Program for Reactivation with Inclusive Housing and Urban Regeneration (Previt), will seek to detonate the development of 10,400 homes with affordable prices. Of this total, he detailed, 523 units are considered "inclusive housing."

In this regard, he pointed out that 88 projects have been registered in the Previt, which implies an investment of the order of 11 thousand 660 million pesos. Of this total, he said, eight projects have already started.

In this sense, he stated that the goal for 2021 will be to start 64 more projects than those already authorized, with which 7,621 accessible homes would be built in the year.

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Original note