IDB Invest and Habi Partner to Facilitate Housing in Mexico through Technology
- This is IDB Invest’s first investment in a PropTech company
IDB Invest will provide financing of $15 million over four years to Habi, a real estate technology platform, for its expansion plans in Mexico. The structured loan, which could increase to as much as $50 million, will finance Habi's working capital needs.
Through this financing, IDB Invest aims to help reduce the housing deficit in Mexico which will strengthen the liquidity and agility of the secondary real estate markets with the aid of technology.
The project will also improve the efficiency and transparency of this market, as well as will contribute to the use of local contractors to renovate properties and to the growing network of Habi corridors.
Given the housing deficit across the region, PropTech – the intersection of the real estate industry with technology and software – is transforming the market through technological innovations, business models, and applications that use subscription tools, software, hardware, artificial intelligence and virtual reality, to streamline and replace traditional industry processes.
This deal is IDB Invest’s first investment in a PropTech company and it underscores its commitment to promoting the housing market in the region through digitalization.
The deal is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8) and Sustainable Cities and Communities (SDG 11).
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $15.3 billion in asset management and 375 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
Habi is building the digital infrastructure for an efficient residential real estate market in Latin America, with the goal of empowering families in one of the most important decisions of their lives: their homes. Since 2019, Habi's data-driven tools, including valuation, transaction, and financing products, have introduced transparency, speed, liquidity, and trust into what has traditionally been an opaque and time-consuming process for hundreds of millions of Latin Americans. Habi benefits all players in the ecosystem, helping brokers and banks to make faster and more informed decisions, but above all, giving families freedom and control over their lives and the wealth they store in houses and apartments. Habi operates in more than 15 cities in Colombia and Mexico, whose total population is estimated at more than 60 million inhabitants. For more information about Habi, visit tuhabi.mx or habi.co.