A Developer's Mission to Restore MonterreyThu, 11/01/2018 - 09:51
Monterrey may be ignoring the lessons learned by Mexico City’s unplanned and sporadic horizontal growth that created the urban sprawl that exists today, but GM Capital is hoping to correct that by restoring mobility and transforming the Metropolitan Area of Monterrey (ZMM). “More than 190,000 cars and 230,000 people commute to San Pedro Garza Garcia each day, immobilizing the municipality’s streets,” says Marco Garza, Founding Partner of GM Capital. “Monterrey developers must take action and boost the development of resilient projects that will improve quality of life.”
Monterrey’s population has doubled, yet urban sprawl has grown eight times its original size, swallowing up neighboring municipalities. Nuevo Leon, and especially the ZMM, is booming in terms of real estate development. The state of Nuevo Leon has been the leader in Mexico’s housing market, ahead of Jalisco and the State of Mexico, in terms of new housing. Commercial real estate is also on the rise with more than 245 existing commercial projects in the ZMM, 26 in construction and 11 in the planning phase, according to a 2H17 Collier International report. The city’s fast development has given way to new symptoms and Garza believes a lack of vertical housing is a key reason why the city continues to expand horizontally and to grow in an unsustainable manner.
Consequently, Garza says one way to provide relief is through the development of well-planned mixed-use projects. “Mixed-use projects where inhabitants can spend 85 percent of their time will be the cure for Monterrey,” he says. The ZMM has over 30 existing mixed-use projects and 20 on the way, according to Colliers International. Regardless of the activity, Garza says there needs to be more coherent planning around the projects. “There are many new developers who see the potential in Monterrey but their interests conflict with the city’s needs. They offer real estate products without factoring in urban planning.”
Despite such high rates of development in areas such as Valle Oriente, Garza says people have yet to move back into the city center where they often work. He believes the main reason for this is that the right value proposition has not been transmitted to the market. GM Capital’s two upcoming projects, Distrito Rivera and Distrito Armida, aim to motivate people to leave their homes on the outskirts of town and live closer to where they work. “The plan is to offer education and other services along with affordable housing to motivate people to move into San Pedro Garza Garcia,” he says.
GM Capital’s developments all have different price points. The prices for units in Distrito Armida and Distrito Rivera range from MX$3.5-9.5 million. “Each project targets a different demographic, providing complements for each district,” says Garza. “But this market of 230,000 potential clients is still too large. The market is big enough for more developers to meet the demand.”
As of May 2018, over 50 percent of Torre Malva in Distrito Armida had been sold. Phase 2 of the project consists of a shopping center and a project with Hospital Angeles. “Grupo Empresarial Angeles wanted to expand its hospital by 10,000m2 into our land and we saw the opportunity to construct a tower alongside it that will contain clinics and a long-stay hotel to complement the development,” he says.
The goal of GM Capital’s projects is to be inclusive and to address in one single area all the needs a family might have, while always keeping in mind the idea that people should live near their jobs. “At GM Capital we believe that we have a responsibility to deliver projects that contribute to a city’s development in terms of the new dynamics required for an improved quality of life,” says Garza.