CDMX government seeks to expand housing supply to meet current demand

The current administration of the government of Mexico City (CDMX) has identified the housing problem that exists in this area of ​​the country, so it works both to give certainty to developers as well as to seek to expand the housing offer and be able to lower prices.

According to Fadlala Akabani Hneide, Secretary of Economic Development of Mexico City, the capital government has created the conditions to provide economic and legal certainty to investments, which is reflected in the growth of Foreign Direct Investment in the capital of the country.

Thus, under this scenario, for the secretary, giving way to the arrival of foreign capital will allow contributing to the housing lag in Mexico City, where it is estimated that each year some 14,000 homesa figure that falls short given the demand for more than 60,000 units, but throughout the area, not just in the plants.

“We need to balance the real estate market in the city so that there is real estate supply in the rest of the municipalities, which is Tláhuac, Iztapalapa, Xochimilco. In this way we will balance supply with demand and lower prices,” Akabani Hneide said. .

However, he pointed out that in order to attend to the low-income segment, the one with the lowest price, it is necessary to provide public infrastructure to facilitate the commercialization of units outside the center of Mexico City, as well as to guarantee security.

Connectivity, the access key

For the representative of the capital government, an element that contributes to the arrival of more companies, especially in the technological field, derives from the conditions of Internet connectivity available in Mexico City.

“It arises to facilitate and give certainty to purchases, in this case real estate. There is a different consumption habit in the inhabitants of the city, the habit of buying through digital platforms grew by more than 200% prior to the pandemic, ”said the head of Capital Economic Development.

Akabani Hneide considered that these conditions are not only given to foreign companies, but also to organizations from the interior of the country that seek to establish operations in Mexico City.

For the capital’s economic development secretary, part of the responsibility for the real estate challenge faced in Mexico City is due to the actions of the administration prior to the current one.

Akabani Hneide assured that when they took over the city administration at the end of 2018 they found a “high real estate disorder”, which has caused delays in the regularization and establishment of urban reconversion to have land available only for living place.

“The last administration did not do anything about infrastructure and what we want is for there to be investment in Xochimilco, Tláhuac and in Milpa Alta is to fix the roads, that there is correct, fast, efficient public transport such as the Cablebús in Iztapalapa and Gustavo A Madero or the elevated trolleybus that we are going to open on September 11,” he assured.

Thus, he explained, real estate developers will take their projects to a larger area of ​​mayors in Mexico City.

On the other hand, he pointed out that the health emergency also posed a real estate challenge.
“The pandemic also affected us a little, but I think we are on the way to address the housing needs which is 60,000 homes a year and we cover around 20,000,” said the secretary.