Can you share what your company anticipates for 2019?

This year our company foresees launching 23 developments, 17 of which are slated to commence in the first half of the year. Presently, five projects are already underway, with an additional six slated for launch in the latter part of the year. These developments will span across all states where we hold a presence. Of the 23 projects, 13 will focus on the residential segment, seven aimed at middle-income housing, and three dedicated to affordable entry-level homes. Our products are categorized based on price ranges: AEL, housing below MXN300,000 (USD15,954); middle-income housing spanning MXN301,000 to MXN850,000 (USD45,210); and residential housing exceeding MXN850,000.

The year ahead holds various challenges for BIM, yet we approach it with fervor and optimism regarding our plans. We are aligned with the new government’s strategy concerning the housing industry and developers’ operations. The implementation process has been remarkably smooth, with sector members, constructors, and developers in sync with the new strategy. Collaboratively, they are exploring innovative methods to construct improved housing, aligning various stakeholders—government, financial institutions, and different sectors—to significantly enhance the quality of life for Mexicans.

How do housing demand and pricing affect your business?

Housing demand correlates directly with job creation and formality. Eligibility for INFONAVIT requires formal employment. In October 2018, INFONAVIT recorded 6.2 million beneficiaries with access to loans, marking a 4.5% increase from October 2017. This surge aligns with the 800,000 jobs generated in 2017, per IMSS data. These newly employed individuals meet INFONAVIT requirements, representing potential homebuyers. Moreover, the housing sector constitutes a substantial part of the country’s economy, contributing 6% to GDP in 2017, creating over 2.4 million jobs. A similar trend was expected for 2018. We operate in states where INFONAVIT distributes over 53% of its annual credits for new housing, signifying real estate’s dynamism. States like Quintana Roo have experienced robust growth driven by the tourism sector and job creation, echoing the dynamism observed across our operational states.

Over a decade, our bank has actively financed low-income housing, adapting to evolving economic and government strategies within the housing sector. In recent years, financing has gradually shifted towards medium-income housing, yet our commitment to low-income housing remains steadfast, accounting for nearly 49% of our total financing. We’ve engaged with the government, advocating for a necessary reorientation in developers’ strategies to enhance efficiency, streamline construction processes, and deliver greener housing. We support green projects nationwide and foresee a future without the subsidies of the past, emphasizing the importance of developers’ ability to secure financing and construct more efficient homes as cities continue to expand.