Josefina Moís, General Director of the Mexican Association of Real Estate Fibers (AMEFIBRA), reported that workers with an AFore have 183,000 million pesos invested in more than 2,000 real estate rented such as offices, industrial ships and retail stores in Mexico.
“Affores are owners of 40 percent of the fibers, companies that rent 2,000 real estate, for their advantages as solid investment instruments, their growth and their low risk, which directly links the savings for the withdrawal of millions of Mexicans with the good return of investment and their low exposure to risk,” said the business representative.
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He added that 68 million workers with retirement savings accounts are owned by trusts through Afores, which have invested more than 183,000 million pesos in them.
“This represents a significant part of the more than 22.5 billion dollars of total capitalization of these instruments, equivalent to 5 percent of GDP,” he said.
The main investors of fibers in the world are mutual funds, pension and ETFs funds, among others, he explained.
He pointed out that the investment in these instruments has allowed the democratization of real estate portfolios, thanks to these institutional investments and the new opportunities that have been opened for small individual investors due to the advancement of technology, the most friendly regulation of financial markets and the new offers of the stock market houses.
On October 25, 2024, the Government of Claudia Sheinbaum announced modifications to the Afores investment regime to benefit workers.
Among the changes, an increase in the investment limits in structured instruments and fibers, allowing young workers to allocate up to 12.5 percent of their funds to these assets.
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“With the impulse of Nearshoring and the growing demand for industrial and commercial infrastructure, the real estate sector in Mexico has great growth potential,” said Moís.
The fibers represent a profitable and accessible investment, playing a fundamental role in the Mexican economy, he said.
He recalled that the fiscal attraction of the fibers is shared in other regions with the objective of encouraging greater investments and generating a greater impact on the development of countries.
“Real estate investments are one of the main economic indicators of any nation,” he said.
“In Europe it is estimated that the market value of the fibers grows from 145,000 million dollars to 208,000 million in the next five years. Largely driven by a regulatory environment that has evolved and facilitates private savings and institutional investments, care to avoid double taxation and to generate a even court level for all forms of real estate properties, ”he said.
He said that in Asia the growth of fibers has been remarkable in the last two decades, going from a market value of 1.7 billion dollars in 2001 to 252,000 million pesos in 2035.
He added that China’s opening to these instruments since 2020 has reinforced expectations in the region.
He said that regulatory changes, focused on incentives and greater fiscal transparency, have been key to the expansion of these investment instruments.
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He indicated that fibers have proven to be a fundamental tool for the growth of the real estate sector and the diversification of investments at a global level, but that their sustained growth is not only reflected in financial yields, but also in the generation of infrastructure and the strengthening of the economies in which they operate.
The association highlighted the importance of further promoting its development: “With a favorable environment, these instruments have the potential to consolidate as a key pillar in the country’s economic growth.”
