Given the demographic conditions of the country, the need for housing mobility and, especially, the area of opportunity to transition to formality, the real estate investment trusts (Fibras) have turned to see housing for rent in 2022 where they seek to capture resources from the stock market.

Fibra Haus and Fibra Multifamily are preparing their debut on the Institutional Stock Exchange (BIVA) in order to raise a total amount close to 5 billion pesos and be able to build housing complexes for rental housing.

In Mexico, there is a need for 8.2 million homes required; and it is estimated that 7% of said figure is required to rent, according to the National Institute of Statistics and Geography (INEGI).

Likewise, it is expected that by 2030, five out of every 10 rented units will be concentrated in 29.4% of the population between 25 and 39 years of age.

Currently, there are 16 Fibras listed in the stock market; however, its main activity is focused on the leasing of offices, shopping centers, industrial buildings, hotels and educational facilities, so there is no vehicle of this type focused on rental housing.

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For Daniel Braatz, president of the Technical Committee of Fibra Haus, a trust of this type dedicated to rental housing makes sense because of its long-term vision and, in addition, makes the business more transparent, which can obtain a value, within the formal sphere, close to 340,000 million pesos.

Fibra Haus estimates that the capital raising will help finance its initial portfolio, made up of two pieces of land, located in Mexico City and Querétaro, in which between 1,500 and 1,600 units would be developed, with a rental value that oscillates between 12,000 and 25,000 pesos per month per unit.

In the medium term, Fibra plans to grow in an inorganic way to cover six cities and have a portfolio of at least 8,000 units during its first 10 years.

For Jorge Martínez Chávez, director at Fibra Multifamily, the key to formalizing the rental housing market lies in the adaptability of the product.

“In Mexico there are 5 million rented homes, of which 49% are informal, that is, they are people who have a house, rent it to someone else, but are not made for rent… We identified that 60% of the People who rent are single, or single couples, who do not require three bedrooms, they do not require as much space as the apartments that are on the market today.

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Fibra Multi Family would be looking to raise about 2.3 billion pesos to finance the development of five projects, located in Jalisco, Tijuana, Querétaro and Nuevo León, which will add about 1,000 units, which will be rented from 16,000 per month per unit.

The director of Fibra Multifamily noted that Mexico has the potential to transition to models such as the United States, Chile or Europe, where a large part of the rental housing is formal and is supported by capital from institutional vehicles, such as pension funds.

According to Fibra Haus estimates, the formal rental housing market in Mexico is made up of 35 specialized properties, totaling 4,600 existing units, which are owned by local and international investors.

In Solili you can consult available apartments in Polanco and Condesa

Original note