Multifamily For Rent to Take Off in Mexico?
To get the conversation going, and Ricardo Amack of Greystar presented their experience in Mexico so far investing in this unique segment and their lessons learned thus far with their first development, Stratto, in Guadalajara. In summary, Greystar is confident this segment of the market will continue to grow given Mexico’s changing demographics, surging demand, and a lack of residential supply in its cities. According to Greystar, some of the benefits associated with institutional Multifamily rental housing are a more efficient land use, shared amenities among residents, contract flexibility that fits their needs and hassle-free living when it comes to maintenance and repairs.
Although there are many positive signs to invest, as a new product, it also has various factors that make it more challenging to introduce into the market. Vicente Naves of Artha Capital took the role of moderator during this discussion and guided participants through the main challenges that investors and developers alike were experiencing to fund and market these types of projects. Some of the members present during the meeting were Francisco Covarrubias (TC Latin America Partners), Eduardo Guémez (Walton Street Capital), Luis Cantú (Seris Retail Holdings), Raúl Gallegos (Credit Suisse), Alejandro Sanchez (Gran Ciudad), Javier Vidales (CCLA /CIM Group), Alfredo Marin Pasos (Urban Hub Mexico) and Juan Gonzalo Flores (IFC). Members discussed the main challenges for multifamily in Mexico such as the current political risk, economic uncertainty and product risks.
The conversation will continue at GRI Residential & Offices Mexico 2019, on November 26 and 27 in Mexico City. International investors and developers with their sights on these real estate sectors will meet to explore the country’s unique opportunities and challenges. Don’t miss the chance to be a part of the discussion!