IDB provides loans to access housing for Mexico’s low and middle-income populations
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IDB Invest provided a convertible loan of up to 500 million Mexican pesos (approximately $24.4 million) to Xante, a PropTech subsidiary of the housing developer Vinte, which specialises in the purchase and sale of used homes in the low- and middle-income segments.
The project showcases an innovative solution to the housing gap, focusing on strengthening the transparency and efficiency of the secondary housing market to help ensure a more efficient and equitable use of existing housing.
The convertible loan will allow Xante to expand its business through the acquisition, maintenance, and remodelling of existing homes. Approximately 45 per cent of the homes sold by Xante are in the affordable housing segment.
PropTech is the intersection of the real estate industry with technology, and is transforming the market through technological innovations, underwriting tools, software, hardware, artificial intelligence, and virtual reality to streamline and replace traditional industry processes.
The homes acquired by Xante are renovated by independent contractors, mostly micro, small, and medium-sized enterprises (MSMEs). With the expansion of Xante’s business, demand for these contractors’ services and products is expected to increase, potentially driving the growth of domestic MSMEs. Furthermore, benefits are anticipated for the independent intermediaries involved in the property buying and selling process.
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