Mexico City, a market of 229,526 homes for vacation rentals

One of the markets in the real estate sector that has the greatest opportunity for growth is that of vacation rentalwhich has not been fully exploited in Latin America and currently has a market value of more than $30 billion, according to Humberto Pacheco, co-founder of Naya Homes.

According to figures from the consulting firm Transparent, the inventory of households available for short-term rental in Mexico City was 229,526 units at the end of April 2022, positioning it as the second most important market in Latin America, only after Brazil.

In an interview for EconoHábitat, the former manager of Uber in Latin America pointed out that one of the most attractive cities in the segment of vacation rental It is the Mexican capital.

“Mexico City is a very attractive market, which is why we chose it to base our expansion in the country. It’s where our central system is and where most of our transactions are recorded,” he said.

In addition to Mexico City, Naya Homes started operations in Puerto Vallarta, Jalisco and in Bahía de Banderas, Nayarit; in the future it hopes to expand to Los Cabos, Baja California and the Riviera Maya.

Foreigners gain ground

Naya Homes is a new platform that applies technology to maximize the profitability of properties, in this way, it is responsible for increasing the exposure of homes on more than 25 digital platforms, such as Airbnb or Expedia.

“We develop data science to understand how much each property can generate and maximize prices and occupancy, considering reservation curves, market behavior, seasonal changes, etc.”, explained Humberto Pacheco.

Although proptech caters to all types of owners, it has found an important niche in foreign investors, who acquire real estate not only for personal use, but to increase their income with the vacation rental.

However, this market encounters difficulties in complying with its tax obligations in Mexico and that is where Naya operates.

“In beach destinations, the participation of foreigners is very large, which is why it has become an important segment for us because the inconveniences to manage their assets are higher,” explained the businessman.

Raise $5 million

At the end of September of this year, Naya Homes managed to raise 5 million dollars in a seed round, which adds to the 600,000 dollars that it raised in a pre-capital raising held in March 2022.

The round was led by Flybridge Capital Partners, with the participation of former executives from the Uber team in Latin America, Primary Venture Partners, Carao Ventures, among others.

As part of its growth strategy, the new technology platform for the real estate sector has the goal of managing more than 1,000 properties in vacation rental for the next 24 months.

Pacheco announced that the firm is working on an investment tool in which users can purchase vacation properties.