Changes in Regulation Will Define Real Estate Crowdfunding This Year in Mexico

Real estate crowdfunding has advanced as one of the most innovative tools for financing real estate projects in Mexico. It is expected that, from new technologies to changes in regulation, they will define the future of the sector.

According to data from the Association of Collective Funding Platforms (Afico), in the last five years, collective funding platforms for real estate have raised nearly 9 billion pesos in capital, with a growth of 695% in said period. .

In this sense, the 100 Ladrillos platform shared a study that highlights the trends expected for the sector in 2024, such as improvements in accessibility and user experience, by facilitating the participation of investors in real estate projects from the comfort of their homes.

In addition, it is mentioned that Mexico will continue with “clearer and safer regulation.” The current regulatory framework would be adjusted to encourage the growth and transparency of real estate crowdfunding , to generate greater confidence among investors and promote a safer environment for all parties involved.

In this context, Iván Carmona, general director and co-founder of 100 Ladrillos, indicated that collaboration between platforms and developers is key.

“Strategic alliances between crowdfunding platforms and real estate developers promote the creation of more ambitious and diversified projects, expanding opportunities for investors,” commented the expert.

Read more about the real estate crowdfunding sector in Mexico and find the latest financial news of the day with our companion app Born2Invest.

Real estate crowdfunding platforms seen as an alternative to loans

Following the increase in interest rates on construction loans in Mexico, according to 100 Ladrillos, real estate crowdfunding platforms will be positioned as an alternative for financing real estate projects in the country, with upward growth.

For its part, the platform has, to date, more than 250,000 registered users and 50,000 active investors; Carmona shared that “last year alone, 20,000 new users were registered, generating funding amounts of more than 200 million pesos.”

Other trends that will mark the sector in 2024 would be the tokenization of assets, as it is positioned as an innovative form of investment that allows fractions of properties to be acquired through digital tokens and provides greater liquidity and diversification.

Likewise, they highlight the increase in funding for sustainable real estate projects with Environmental, Social and Governance (ESG) criteria.

According to 100 Ladrillos, environmental awareness will drive demand for real estate projects of this kind, so crowdfunding platforms will seek to incorporate these criteria to attract investors committed to social responsibility.

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(Featured image by nattanan23 via Pixabay)

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First published in EL ECONOMISTA. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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