The Mexico City government is aiming for 10,000 new social housing units to be built in the next five years as part of a partnership with the private sector.

The government said in its official gazette that it will invest 23 billion pesos (US $1.2 billion) in social housing in 12 real estate corridors in central Mexico City. The project is part of the Special Program for Urban Regeneration and Inclusive Housing.

Companies that build in the corridors – located in the historic center and along major roads leading into the downtown, among other areas – will be required to set aside 30% of the stock in their projects to social housing.

Workers with monthly salaries between 7,000 and 28,000 pesos (US $365 to $1,460) will be eligible to purchase the units with loans from federal government housing funds Infonavit and Fovissste or Mexico City’s Institute of Housing.

Sales are restricted to people who don’t already own property. Purchasers will not be able to sell their units for a period of five years after deeds are issued.

Prices are expected to start at 450,000 pesos (US $23,500) and go up to about 1 million pesos (US $52,000).

Half of the social housing will be two-bedroom apartments and the other half will be of varying sizes depending on the purchasers’ needs.

Pablo Benlliure Bilbao, director of planning at the Secretariat of Urban Development and Housing, said the first units will be completed at the end of 2020.

He said that 1,250 social housing apartments will be built per year, which would mean construction of 6,250 apartments by the end of 2024: a shortfall of 3,750 compared to the government’s stated goal.

Among the real estate corridors on which the social housing will be built are Eje Central, Hidalgo avenue, Chapultepec avenue, Paseo de la Reforma and Insurgentes Norte.

Across the 12 corridors, there are 800 vacant, abandoned or underused lots, Benlliure said.

Source: El Sol de México (sp)