Paladin Realty has been active in Mexico since 2001 through a series of joint venture relationships with local developers. As in other regions, Paladin has focused on for-sale workforce housing due to the large and growing housing deficits in the country, but has entered the commercial market on an opportunistic basis
In Mexico Paladin Realty has invested in X projects, principally in Mexico City, but also in Tijuana, Monterrey, and Cancun; today the focus is greater metropolitan Mexico City. Mexico has a housing deficit estimated in the range nine million homes and an estimated ratio of potential demand to annual supply of 3:1, making it a prime market for low to middle-income housing. Paladin has developed X units of workforce housing across the country.
Zero-Carbon Affordable Housing Developments
Paladin Realty has been pushing the limits of sustainability in Mexico using IFC’s EDGE (“Excellence in Design for Greater Efficiencies”) system to quantify savings in energy, water, and embodied energy in materials. In Mexico certain advantages exist for developers and homebuyers in developing green homes. For example, buyers benefit from “Hipotecas Verdes” or “green mortgages” which enable homebuyers to have higher mortgage loan-to-value ratios when demonstrated utility cost savings free up disposable income for mortgage payments. This reduces downpayments and leads to great attainability for lower income buyers. For developers and investors, the Eco Casa program provides interest rate subsidies on construction finance for sustainable homes.
Paladin and partner Casas Krea are in the final stages of developing the Villas del Fresno project, outside of Mexico City. The project is delivering 1,639 affordable housing units which will save 41% on energy costs, 25% on water, and 74% on embodied energy in materials; combined with the purchase of carbon offsets for the remaining carbon footprint, the project is the first EDGE Zero Carbon residential project in the world. In addition to utility bill savings, the new owners benefit from various amenities such as 30 acres of green space, five large sports courts for basketball and soccer, 1.5 km of walking paths, BBQ areas, and playgrounds. The streets are also safe places for children to play, as the project is gated and through traffic is minimized. Each section of the project has a representative responsible for "Creation of Community" organizing social events, exercise classes and other community functions, as well as educating people who have never lived in a closed condominium about the common areas, and other issues surrounding a different way of living, in harmony with one's neighbors. The project also provides three schools (pre-school, elementary, and high-school) which will benefit the community outside the gates as well as the residents within the gates.