AMEFIBRA Backs New Water Law, Calls for Real Estate Certainty

The Mexican Association of Real Estate FIBRAs (AMEFIBRA) urges lawmakers to advance toward a regulatory framework with clear rules and greater hydric certainty for real estate development in Mexico, amid the legislative debate surrounding the newly approved General Water Law. The discussion is closely followed by the real estate investment trust (FIBRA) sector, given the law’s impact on urban development, asset operation and long-term investment planning.

According to El Economista, AMEFIBRA has praised the openness shown by President Claudia Sheinbaum, as well as ongoing dialogue with legislators and the National Water Commission (CONAGUA). The association says that the law incorporates an integral vision placing the human right to water at the center of national water governance.

Congress Approves Framework Regulating the Human Right to Water

On Dec. 3, the Chamber of Deputies approved in general the bill establishing the General Water Law and reforming multiple provisions of the National Waters Law. The initiative received 328 votes in favor, 131 against, and five abstentions.

The new law regulates the human right to water and sanitation established in Art. 4 of the Mexican Constitution. It defines the responsibilities of federal, state, and municipal authorities in guaranteeing access, availability, and sanitation for personal and domestic use. It also establishes the foundation for equitable and sustainable management of water resources, recognizing their interdependence with other human rights.

Key elements include:

• Clear distribution of competencies between the federal government, states, and municipalities

• Promotion of water culture and encouragement of citizen participation

• Recognition and strengthening of community water systems in Indigenous and rural areas

• Obligatory hydric planning with long-term projections tied to climate conditions, population growth, ecosystem health, and hydrological variability

• A 10-phase hydric planning framework spanning six-year cycles

The law incorporates several new concepts, such as treated wastewater reuse, hydric responsibility, security of water supply, criteria for addressing overexploitation, and the creation of a National Water Reserve Fund to support reassignment of water volumes. It also empowers CONAGUA to issue emergency measures, regulate reassignment of water volumes, conduct verification and inspection, and impose administrative sanctions, including fines, temporary or permanent closure of operations, and revocation of concessions.

Criminal penalties are established for illegal extraction, diversion, or commercialization of national waters, as well as for public officials or private parties engaging in corrupt practices to obtain concessions or authorizations.

Implications for the Real Estate Sector

AMEFIBRA stresses that clear, predictable water regulations are vital for investment certainty, portfolio expansion, and the operation of assets across the country. The association supports advancing toward a framework that prioritizes the protection of the human right to water; efficient and sustainable water management; mechanisms for strategic, planned transmission, or reassignment of water rights; regulatory clarity for operators and users; feasible compliance pathways across diverse regions; modern processes aligned with urban growth and real estate infrastructure; multi-stakeholder collaboration with authorities, private sector, and communities; and expansion of rainwater harvesting for non-domestic uses.

AMEFIBRA reported that it will continue collaborating with federal, state, and municipal authorities to strengthen water efficiency practices across real estate assets. The association represents trusts responsible for 4.5% of Mexico’s GDP, operating more than 2,000 properties totaling 30 million m² of gross leasable area across industrial parks, shopping centers, offices, hotels, hospitals, and schools.

Sector Pushes Forward on Sustainability

In its 2024 ESG Report, AMEFIBRA reports that 71% of FIBRAs generate or use renewable energy, representing 92% annual growth. Furthermore, 95% implement social initiatives benefiting their communities and 100% have ethics codes and reporting channels. The association adds that over 8 million m² of assets hold sustainability certifications.

Fina Oliver, CEO, AMEFIBRA, emphasizes that, amid increasing climate-related risks, including extreme weather events and growing water scarcity, the real estate sector must continue building resilience and adopting responsible practices to support long-term national development.