Daniel Tovar
Director General Latin America
Grupo Acerta
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View from the Top

Specialization: The Key to Real Estate Success

Tue, 11/01/2016 - 14:28

Q: What is the image of the real estate sector in Latin America and in Mexico?

A: Mexico is a target for international investment, which is being channeled to the real estate market. This is evident in the sector’s dynamism and the large sums of money that are being invested in projects here. Mexico City, for example, is undergoing a significant change. After a few years during which investors were reluctant to finance large resorts, they are once again looking at the hotel sector. This confidence is illustrated by the development of numerous hotels in Playa del Carmen, Cancun, Huatulco and Puerta Vallarta.

Q: How is sustainability and environmental responsibility impacting construction plans?

A: Mexico has strict environmental regulations that require specialist impact studies and statements. Obtaining construction permits is lengthy and complex and the environmental restrictions are stringent. Natural areas tend to be vast yet the number of building sites on those lands is relatively small to its size, which limits the impact. Occupancy rates may be 5-10 percent of the total area and the remaining land is reserved for preservation via mangrove protection areas and coastal protection programs. One problem in Mexico is water management. There are extremely strict regulations regarding construction in areas with water-related problems to protect the aquifers. We also develop plans for flora and fauna preservation. With these projects measures are in place to preserve the ecosystem. There also is a trend toward generating alternative energy and energy-saving  measures, including treatment of sea water for human use that gets returned to the sea.

Q: What does a project need to be successful and what trends are changing how work is done?

A: A cornerstone of our company is that we recognize the importance of project planning. A successful project requires qualified and professional human capital as well as expertise and experience in specific areas. One major trend is specialization, which evolved from the traditional model wherein real estate companies offered complete services, from funding to planning and design and finally construction and operation. With an increased focus on specialization, companies outsource certain tasks to third parties and although Mexico still has a lot of multitasking firms, there is a clear push toward design-only architectural firms. Specialization leads to greater productivity and expertise in a faster, more effective way.

Q: How can specialization help companies that still prefer to do everything themselves?

A: The number of companies that offer project management support is still limited but the rising number of foreign real estate players in Mexico is boosting demand for these services. We provide a solution to an existing need and we work closely with companies to demonstrate how specialization can contribute to growth. Specialization is crucial, as companies who focus on everything simultaneously often tend to focus on the divisions that are faltering and thereby neglect their strengths.

Q: What is your strategy for Mexico in the coming years?

A: The real estate market is constantly evolving so Grupo Acerta must constantly adapt to these changes. We have learned that no country, state or circumstance is the same and we must always be flexible. Grupo Acerta wants to identify potential projects, trigger development and provide our customers with structured developments. The company is an active service provider, which differentiates us from similar companies in the sector. We are convinced that because the Mexican real estate market is built on a solid economy, it will continue to grow.