Consorcio ARA Plans to Build 9,000 Homes in 2025

Consorcio ARA plans to build 9,000 homes in 2025, despite ongoing challenges in Mexico’s housing sector, says Director General of the Housing Division Miguel Lozano. The firm reports a growth in revenue in 2024, thanks in part to the annual increase in the average home price, and has high expectations for 2025. 

“For this year, we expect double-digit growth, but it is a complicated year. When subsidies were available, we built up to 17,000 homes annually because there was demand. Now, constructing houses is a huge challenge,” Lozano tells El Economista.

According to Lozano, housing development over the past six years has been particularly difficult, impacting developers and exacerbating the country’s housing crisis due to the lack of new projects. In this context, Lozano says that the federal government’s initiative to build 1 million low-cost homes is crucial for the country, but insists that the expertise of housing developers should be taken into account.

Back in October 2024, President Claudia Sheinbaum announced the Housing and Regularization Program, which aims to construct 1 million homes, grant 1 million deeds, and improve or expand 450,000 homes, during her administration. The initiative targets vulnerable populations, including female heads of households, youth, indigenous communities, and senior citizens, MBN reports.

“The need for housing is enormous. We remain committed and have not reduced our investment. We hope to overcome this period of uncertainty and gain a clearer outlook. We are a resilient industry, and we hope the authorities recognize developers and professionals so that they involve us in the housing plan,” he adds.

2024 was a good year for Consorcio Ara, says Lozano: “We had a strong year-end, with total revenues in 4Q24 reaching MX$1.7 billion (US$87.12 million), reflecting an 18.1% growth, continuing the momentum from the past two quarters.”

Housing revenues totaled MX$1.6 billion (US$82.86 million), marking a 20.5% increase compared to 4Q23. These revenues corresponded to the sale of 1,416 homes, up 13.5%, with the average price reaching MX$1,197.6 (US$58,500), 6.2% higher than the same period last year. The positive revenue performance was mainly driven by the Social Interest and Mid-Level segments, both registering double-digit growth. 

Regarding revenue from the “Build with INFONAVIT Credit” scheme, or Line III, ARA recorded MX$377.8 million (US$18.46 million) worth of notarized housing in Q424, which will be recognized as revenue within six months upon delivery. Additionally, revenue from delivered homes under this scheme amounted to MX$358.3 million (US$17.51 million), primarily in the Social Interest segment

This credit model allows INFONAVIT beneficiaries to build their homes through a developer in an approved housing complex (integrated modality), at a lower rate than a traditional loan. During construction, the developer receives payments as work advances, monitored by a Financial Management Entity.

Despite turbulence in the sector, Consorcio ARA reported revenues of MX$7.1 billion (US$347.71 million) in 2024, reflecting a 5.5% increase compared to 2023. This growth was partly driven by a 2.5% annual increase in the average home price, reaching MX$1.19 million (US$57,902). Additionally, the company generated a positive free cash flow of MX$279.5 million (US$13.65 million).

“The housing sector in Mexico remains a significant opportunity both in the short and long term, thanks to demographic trends, consistent housing demand, and the availability of mortgage credit. 2025 will be a year of many challenges but also opportunities. We are confident in maintaining the positive momentum of 2024,” says Lozano.

As of Dec. 31, 2024, Consorcio ARA held land reserves valued at MX$4.38 billion (US$213.94 million), covering 30.1 million m2, enough to develop 115,424 homes under a master plan.