An Analysis of Housing Policies in Mexico and Spain
Two Different Models

IPADE played host to an important session on the real estate sector, as part of its Continuity Program for its local IESE Alumni Association. The event was coordinated by IESE professor José Luis Suárez, with the support of Carlos Acedo Moreno (MBA, ‘88), president of the local IESE alumni association in Mexico.

The panel included Carlos Gutiérrez, National Commission for Promotion of Housing (Conafovi), part of the Mexican government; Carlos Acedo Valenzuela, Secretary General of Infonavit; and Enrique Vainer, president of the Sadasi construction company. More than 40 people attended the session, which was titled “Access to Decent Housing: Experiences in Mexico and Spain.”

First, professor Suárez opened his talk by highlighting the enormous interest IESE has expressed in the real estate sector. The school has allocated significant resources to research into this field, as well as to training its upper management.

The speakers analyzed the differences between the Mexican and Spanish models. Professor Suárez pointed out that the Mexican market resembles the Spanish market of 15 years ago, including the high interest rates. Both economic stability and the appearance of the euro, however, enabled mortgage interest rates to hover between 2 and 3 per cent in the past few years.

In terms of the Spanish market, the professor claimed that there is a certain “over-valuation in the price of housing in Europe, especially in Spain,” and he highlighted the example of Mexico as a country that provides home loans from public funds – not just private funds as in Spain – which are managed professionally and rigorously through Infonavit. The speakers also stressed the potential growth in the sector in the forthcoming years, and the interest these prospects have aroused in Spanish companies, which are attracted to the possibility of entering a market in which mid-level residential housing is a niche that is beginning to take off.

After the academic session, the audience had the chance to exchange impressions with the speakers.