Mexico's Vinte - Affordable and Sustainable Housing for BOP Customers
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Case Code: BSTR460 Case Length: 15 Pages Period: 2000-2014 Pub Date: 2014 Teaching Note: Not Available |
Price: Rs.400 Organization: VINTE Viviendas Integrales, S.A. de C.V. Industry: Construction Industry Countries: Mexico Themes: Business Strategy,Social Entrepreneurship |
Abstract Case Intro 1 Case Intro 2 Excerpts
Background Note
From the late 1990s, there was heavy growth in the Mexican housing market primarily due to a push from the Mexican government to develop the market, advances in the structure and operation of Mexican mortgage markets, operational improvement in housing funds, increase in lending by the private sector to meet housing needs, stable macroeconomic conditions, rise in economic growth, and higher standards of living. To increase the access of the lower classes to affordable housing, the Mexican government made substantial efforts to provide housing loans to workers making between two and four times the Mexican minimum wage.
However, the demand for affordable housing in Mexico (especially in large Mexican cities) far outstripped availability. Moreover, 50% of Mexicans lived in poverty, unable to afford formal housing units. In addition, the new housing development suffered from being environmentally unsustainable.
In the early 2000s, Sergio Leal (Leal) and five of his colleagues working at a leading Mexican construction company called Urbi Desarrollos Urbanos, S.A.B. de C.V. (Urbi), decided to set up a new construction company to provide affordable housing to low- and middle income Mexicans. All of them shared a common vision – that of raising the housing standards in Mexico. Speaking on their vision, Leal said, "We say that a house should be a source of inspiration for Mexicans, so we can transform ourselves into a different nation."...
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