SEAL OF APPROVAL

Mexico 2019 | REAL ESTATE & CONSTRUCTION | INTERVIEW

Proper appraisal of land value is key to the development of any real estate sector, and INDAABIN fulfills that role for Mexico.

Luis Mariano Cortés Salazar

What has been INDAABIN's legacy over the past 15 years?

A great deal has changed in terms of the way Mexico manages its assets since the creation of INDAABIN 15 years ago. Our establishment was the first milestone of our story. Its predecessor had limited functions and was in charge of appraisals of national assets. With the creation of INDAABIN, the institute became the governing body for federal property, and since then its relevance has increased. In 2017, the Secretary of Finance and Public Trade increased the tax collection responsibilities of INDAABIN. Now, I am honored to preside over the institute and contribute to its work in appraising and managing Mexico's property in an effective way for the benefit of all Mexicans.

How do you see INDAABIN's role continuing to grow under the new administration?

The new administration seeks to optimize the use of the budget in all areas of government. INDAABIN is working to optimize the administration of national property by making sure every government office has the space it needs to perform its activities in an effective way both for public servants and citizens. There are many activities to do on a daily basis, but the government has defined this as a priority to contribute to a slimmer state. It does not have any problem selling some of its real estate, for example by divesting itself of those properties that are no longer useful or whose value has increased, preferring to relocate a government office elsewhere and sell that property to capture its value for the government. This means we can have better spaces for federal government offices, at the same time creating new resources for the government's future plans.

What role do you see INDAABIN playing in important national projects?

INDAABIN plays an important role there, because in past projects people complained that the government paid indigenous people too little for their land or overpaid when it was land owned by someone close to the government. INDAABIN's role is to ensure a fair price for land by appraising it using a transparent, internationally approved methodology and eliminating the corruption factor. In these cases, INDAABIN maintains close consultation with the owners during the process. INDAABIN is currently doing all the prices for important government projects like Tren Maya and Santa Lucía Airport. We have signed agreements or letters of intent with FONATUR for the appraisals and are working closely with it while it acquires the land for these important projects. We are doing this together to obtain a fair price and improve the quality of life for the public. INDAABIN's pricing methodology is certified by the International Appraisals Standards Committee.

How do you see INDAABIN's role with the private sector evolving?

There are many ways in which we can relate to the private real estate sector. The most important one is via forums where we discuss relevant issues with appraisers, developers, and public notaries. It is important to maintain strong relationships with the private sector. If we communicate our methodology, promote international certification standards, and work closely with appraisers' and developers' organizations, we will avoid conflicts in the future and work with the private sector in a more effective way. As the President has said, we need to work together with the private sector to achieve the goals he has proposed to create a better Mexico. We are not selling all the properties, but have two or three interesting properties that the President has instructed us to pursue the sale of. We have been in talks with three or four big real estate sector players, and they are interested. By holding a bidding process, we will get a great result for the administration and bring in some money for the projects the government wants to develop.