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Builders, Suppliers Test the Waters of Growing Mexican Housing Market

Builders and building product suppliers looking to tap into the burgeoning Mexican housing market made practical inroads during the second International Housing Conference of the Americas in Mexico City last month. One hundred industry professionals from the U.S. participated in the three-day conference along with more than 150 of their counterparts from Mexico.

Hosted by NAHB and Mexico’s home builders association, CANADEVI, the conference enabled developers, suppliers and housing sector specialists to meet, share information, exchange ideas and explore business opportunities.

Mexico currently confronts a pent-up demand for 6 million homes. Mexico’s Housing Commissioner, Carlos Gutierrez, pointed out that the market is expected to grow at 4.5% per year, with an estimated value of $6.7 billion by the end of 2005.

CANADEVI’s president, Hector Aguirre, added that Mexican builders plan to build more than 1 million new low- and middle-income homes a year for the next three years. Aguirre noted that a 15% increase in mortgages from both public and private sources are planned and that the primary and secondary mortgage markets have been strengthened.

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U.S. builders and suppliers toured new housing by five of Mexico’s largest builders, learned about the Mexican middle- and low-income housing markets and how to form successful partnerships, participated in pre-arranged, one-on-one networking and heard from leaders from the public and private housing sectors in Mexico as well as NAHB.

“I made key contacts and was able to schedule a future meeting with the representative of OPIC (Overseas Private Investment Corporation),” said Ken Noorigan, of Manufactured Structures International of San Diego. “Based on preliminary discussions and OPIC’s literature, our company looks like their ‘poster child’ and OPIC has indicated its interest in a project that we have been awarded from the Mexican government,” he added.

Attendees toured eight developments — including suburban communities, cluster communities and infill developments ― by five different builders; Grupos Sadasi, Urbi, APEX, Casas Geo and Consorcio ARA.

The tour included the largest development of its kind in Mexico, Los Heroes – Tecamac (click on box at lower left). When built out, the project will have 55,000 homes, 18 schools, 240 commercial businesses, 26.6 acres for sports and recreation and 18.3 acres for parks. Fifteeen thousand homes already have been built.

“Being able to see first hand the foundation-to-finish process of a large developer in Mexico was extremely valuable to me and my work,” said Rick Schwolsky, of El Nuevo Constructor, of Lafayette, CO.

Key Mexican building executives at the conference included:

  • German Ahumada Russek, president, Consorcio ARA, S.A. de C.V
  • Humberto Chávez, president, APEX Operador, S.A. de C.V.
  • Netzahualcóyotl Pérez Román, chairman and CEO, Urbi
  • Enrique G. Vanier, CEO, Grupo Sadasi
  • Miguel Gómez Mont, executive vice president, Corporación GEO

Conference education sessions featured information about building in Mexico, energy efficient and sustainable development, new technologies and building materials, marketing, capital markets in Mexico and creating successful partnerships.

“This was an excellent first step in developing trade relationships in Mexico,” said Rick Brenner of Artisan Builder Group in Santa Fe, NM. “I was able to get an effective overview of opportunities and made several critical initial contacts with professionals in the residential construction industry.”

“Our conversations with representatives of other construction companies gave us not only a good picture of the Mexican housing market, it also allowed us to establish relationships that have resulted in interviews and tours and possible future joint ventures,” said Bryson Garbett, of Sandy, UT-based Garbett Homes.

Mexico City will host the third International Housing Conference of the Americas on Nov. 13-15, 2005. For more information, e-mail Matt Monjan or call him at 800-368-5242 x8419.

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