Bridge loan, with good prospects for 2022: Serfimex

For the following year, the bridging loan that development banks grant to financial intermediaries and that materialize in real estate developments, has a good growth outlook for 2022, driven by a gradual recovery in the housing sector, after the impact of the pandemic by the coronavirus (Covid-19).

According to the multiple-purpose financial company (sofom) Serfimex, during the period of the health emergency the behavior of the financial segment that supports the housing sector has been better than previous years.

“The Federal Mortgage Society (SHF) implemented in 2020 a strategy that allowed them to maintain their operation, supporting the housing sector with sources of credit and liquidity, both construction companies and financial entities, so that from January to December of By 2020, 56,673 million pesos were financed in induced credit and construction credit “, highlighted Serfimex.

In this context, the company highlighted that for the following months good dynamism of the bridge loan in housing is expected, in the understanding that all developments that seek to be successful need financing lines that come from development banks, through of financial intermediaries.

“Today all the developments that want to be successful will require credit lines established mainly in bridge loans. Adequate funding of their projects will be an essential part of an orderly economic reactivation that reduces the impacts on market prices,” the firm said.

Sofom explained that developers have different challenges in the current scenario, such as an increase in interest rates, as well as the rise in the costs of the inputs necessary for their activity, especially cement and steel.

“Before the pandemic, the central bank maintained its interest rate at 7%, which fell to 4% in February 2021, the change in direction of the Bank of Mexico is presenting a new upward cycle … This scenario is seen accompanied by a 10% increase in the price of construction materials, “he pointed out and added that this situation has caused a rise in the price of housing between 6% and 8 percent.

For José Achar, director of Serfimex, the gradual reactivation of the economy also means the resumption of some projects, which generates an increase in the demand for bridge loans.

“In 2022 we intend to grow by 150% the client portfolio and at least 200% the amount of loans placed, we are going to focus on middle and residential housing projects with real estate developers in Mexico City, State of Mexico, Querétaro, Sinaloa, Quintana Roo, Baja California, Yucatán and Nayarit that require funding to face the economic reactivation and the increase in materials ”, highlighted Achar.

Serfimex debuted a few days ago on the Mexican Stock Exchange, raising 250 million pesos through its placement in the debt market of a program authorized for 2,000 million pesos.

Leave a Comment