19 | AGO | 2019
Reactivating the real-estate sector in Mexico City
The 2017 earthquake revealed a series of irregularities and corruption practices in the industry - Photo: Moises Castillo/AP

Reactivating the real-estate sector in Mexico City

11/07/2019
09:25
Mexico City
Editorial
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Claudia Sheinbaum canceled construction permits in the city until there was a diagnosis

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In Mexico City, the real estate growth that has taken place in the last 15 years has been relevant for many reasons, especially two. First, private investment in the city increased significantly, which resulted in economic revenue and more jobs for thousands of people. This represented direct and indirect benefits for Mexico City's inhabitants.

Nevertheless, these growth rates wreaked havoc because the processes and paperwork needed to develop real state in the city, controlled by local authorities, were plagued by corruption. Also, due to excessive growth, some neighborhoods in the city were affected by the saturation of public services before the growing demand.

In this context, Claudia Sheinbaum, who became Mexico City's mayor in December 2018, decided to cancel the construction permits until there was a diagnosis of the situation of real state in the city. Meanwhile, the sector, private investment, and government processes stagnated.

Yesterday, Claudia Sheinbaum announced that her administration will develop real state brokers in order to promote sustainable and social housing. Sheinbaum says that her government won't allow abuses in the industry and that it will implement policies that will analyze the urban impact generated by the new real state developments.

The announcement made by Sheinbaum is positive for Mexico City since the new policies will allow the reactivation of a sector that is key for the local and national economy. Also, the decision will make it possible for families in need to obtain social housing.

Through these policies, it will be possible to create direct and indirect jobs; there will also be economic revenue in the areas where real state is developed because construction workers and other employees require a series of products and services while they work in a certain area.

Mexico City authorities will face three main challenges: the fulfillment of the new real state law, so that land use rules are not violated, among other issues; the fight against corruption among public servants and business leaders, and the protection of the environment. This way, it would be possible to take a different path and benefit the city inhabitants.

 

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