Alejandro Ballesteros
Director of Commercial Development and Marketing
Grupo Copri
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Insight

The Entrance of Middle-Income Mixed-Use Projects

Tue, 11/01/2016 - 13:48

The middle class is emerging as a sturdy foundation for the future of mixed-use projects, usurping traditional higher income areas and failed social housing developments. New financial instruments and the adoption of sustainable practices are the key bricks for building on this trend. “In middle income residential developments, we are constantly trying to innovate,” says Alejandro Ballesteros, Director of Commercial Development at Grupo Copri, one of Mexico’s most important developers and construction companies that focuses on high and middle-income housing and commercial projects. “We were the first developers to build projects that have over 2,500 units with underground parking, amenities and green areas in the heart of Mexico City. Now that others are doing similar projects, we are targeting middle-income residents for mixed-used developments, which used to only be common in high-income areas.”

The industry may have initially been led by low-income developers that were actively participating in the stock market, but many of them are now either restructuring their company or declaring bankruptcy. The market downturn was exacerbated by a heavy investment in the construction of horizontal projects located on the outskirts of the Mexico City metropolitan area that failed due to the lack of basic services. It led to a rapid horizontal growth of the city that did not have the required infrastructure. “Even though the construction of vertical developments is risker because of the number of pre-sales and the financing needed to lift the towers, there is enough demand to motivate banks into